Shin-Etsu Chemical CoSHECY -2.61%95 ROE % is 8.13% as of Mar. 2026, which is 33% below its 10-year median of 12.12. GuruFocus rates SHECY with a GF Score™ of 95/100 and a GF Value™ of $17.86 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,590 Chemicals companies, Shin-Etsu Chemical Co ranks better than 75.41% on this metric.
The historical rank and industry rank for Shin-Etsu Chemical Co's ROE % or its related term are showing as below:
SHECY'
s ROE % Range Over the Past 10 Years
Min: 8.45 Med: 12.12 Max: 19.66
Current: 10.87
During the past 13 years, Shin-Etsu Chemical Co's highest ROE % was 19.66%. The lowest was 8.45%. And the median was 12.12%.
SHECY's ROE % is ranked better than 75.41% of 1590
companies
in the Chemicals industry
Industry Median: 5.195
vs SHECY: 10.87
Shin-Etsu Chemical Co (OTCPK:SHECY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Chemicals subindustry, Shin-Etsu Chemical Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shin-Etsu Chemical Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical Co's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Shin-Etsu Chemical Co (SHECY) has a ROE % of 8.13% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shin-Etsu Chemical Co and its competitors. This is 33% below median its historical median of 12.12. Over the past decade, Shin-Etsu Chemical Co's ROE % has ranged from 8.45 to 19.66. According to the industry distribution chart, Shin-Etsu Chemical Co ranks #391 out of 1590 companies in the Chemicals industry, placing it in the top 24.6%.
Is Shin-Etsu Chemical Co's ROE % too high?
Shin-Etsu Chemical Co's current ROE % of 8.13% is 33% below median its 10-year median of 12.12. Over the past 10 years, this metric has ranged from a low of 8.45 to a high of 19.66. The Chemicals industry median ROE % is 5.20. Shin-Etsu Chemical Co's value of 8.13% is 56.5% above this industry median. Based on the distribution chart, Shin-Etsu Chemical Co ranks #391 out of 1590 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Shin-Etsu Chemical Co has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shin-Etsu Chemical Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Shin-Etsu Chemical Co ranks #391 out of 1590 companies for ROE %. This places Shin-Etsu Chemical Co in the top 25% of its industry — outperforming the majority of peers. The industry median ROE % is 5.20. Shin-Etsu Chemical Co's value of 8.13% is 56.5% above this benchmark. Historically, Shin-Etsu Chemical Co's own ROE % has ranged from 8.45 to 19.66 over the past decade. While the company's 10-year median is 12.12 vs. the industry median of 5.20, Shin-Etsu Chemical Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shin-Etsu Chemical Co's current ROE % of 8.13% is 56.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shin-Etsu Chemical Co and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shin-Etsu Chemical Co's current ROE % is 8.13%, which is 33% below median its own 10-year median of 12.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shin-Etsu Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shin-Etsu Chemical Co (SHECY) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.86, compared to a current price of $21.84 — trading 22.3% above its estimated fair value. The current ROE % is 8.13%, which is 33% below median its 10-year median of 12.12 and 56.5% above the Chemicals industry median of 5.20. Shin-Etsu Chemical Co's overall GF Score™ is 95/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Shin-Etsu Chemical Co (SHECY), the current ROE % is 8.13% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shin-Etsu Chemical Co (SHECY) Overvalued in 2026?
Based on GuruFocus' analysis, Shin-Etsu Chemical Co stock appears to be overvalued.
The current stock price of $21.84 is trading 22.3% above its estimated GF Value™ of $17.86.
GuruFocus considers Shin-Etsu Chemical Co to be Modestly Overvalued.
Key valuation signals for SHECY:
ROE %: 8.13% (33% below median its 10-year median of 12.12)
GF Value™: $17.86 vs. price of $21.84 (22.3% above fair value)
Industry Position: 56.5% above the Chemicals median (#391 of 1590)
No single metric tells the full story. See the SHECY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shin Etsu Chemical is an industrial conglomerate that was founded in 1926. Some of its largest product groups are silicon metal, polymer, silicone, rare-earth, and cellulose products. It holds top rankings in several markets, notably as the largest PVC and silicon wafer producer globally. Shin-Etsu is most exposed to the construction, semiconductors, and pharmaceutical sectors. Shin Etsu employed 27,342 people as of March 31, 2026, and has production bases in 17 countries.
95GF Score
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