Shin-Etsu Polymer CoTSE:7970 +2.13%90 ROE % is 5.32% as of Mar. 2026, which is 30% below its 10-year median of 7.64. GuruFocus rates TSE:7970 with a GF Score™ of 90/100 and a GF Value™ of 円1,751.66 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,581 Chemicals companies, Shin-Etsu Polymer Co ranks better than 64.39% on this metric.
The historical rank and industry rank for Shin-Etsu Polymer Co's ROE % or its related term are showing as below:
TSE:7970'
s ROE % Range Over the Past 10 Years
Min: 5.3 Med: 7.64 Max: 8.55
Current: 7.96
During the past 13 years, Shin-Etsu Polymer Co's highest ROE % was 8.55%. The lowest was 5.30%. And the median was 7.64%.
TSE:7970's ROE % is ranked better than 64.39% of 1581
companies
in the Chemicals industry
Industry Median: 5.21
vs TSE:7970: 7.96
Shin-Etsu Polymer Co (TSE:7970) 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 Specialty Chemicals subindustry, Shin-Etsu Polymer 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 Polymer Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Polymer Co's ROE % distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Polymer 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 Polymer Co (TSE:7970) has a ROE % of 5.32% 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 Polymer Co and its competitors. This is 30% below median its historical median of 7.64. Over the past decade, Shin-Etsu Polymer Co's ROE % has ranged from 5.30 to 8.55. According to the industry distribution chart, Shin-Etsu Polymer Co ranks #563 out of 1581 companies in the Chemicals industry, placing it in the top 35.6%.
Is Shin-Etsu Polymer Co's ROE % too high?
Shin-Etsu Polymer Co's current ROE % of 5.32% is 30% below median its 10-year median of 7.64. Over the past 10 years, this metric has ranged from a low of 5.30 to a high of 8.55. The Chemicals industry median ROE % is 5.21. Shin-Etsu Polymer Co's value of 5.32% is 2.1% above this industry median. Based on the distribution chart, Shin-Etsu Polymer Co ranks #563 out of 1581 companies in the Chemicals industry, which is above the industry midpoint. Overall, Shin-Etsu Polymer Co has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shin-Etsu Polymer Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Shin-Etsu Polymer Co ranks #563 out of 1581 companies for ROE %. This puts Shin-Etsu Polymer Co in the upper half of its industry. The industry median ROE % is 5.21. Shin-Etsu Polymer Co's value of 5.32% is 2.1% above this benchmark. Historically, Shin-Etsu Polymer Co's own ROE % has ranged from 5.30 to 8.55 over the past decade. While the company's 10-year median is 7.64 vs. the industry median of 5.21, Shin-Etsu Polymer 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 5.21, based on 1,581 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 Polymer Co's current ROE % of 5.32% is 2.1% 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 Polymer Co and its competitors. For the Chemicals industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shin-Etsu Polymer Co's current ROE % is 5.32%, which is 30% below median its own 10-year median of 7.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shin-Etsu Polymer Co stock overvalued right now?
Based on GuruFocus' analysis, Shin-Etsu Polymer Co (TSE:7970) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,751.66, compared to a current price of 円2,442.00 — trading 39.4% above its estimated fair value. The current ROE % is 5.32%, which is 30% below median its 10-year median of 7.64 and 2.1% above the Chemicals industry median of 5.21. Shin-Etsu Polymer Co's overall GF Score™ is 90/100 with 6 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 Polymer Co (TSE:7970), the current ROE % is 5.32% 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 Polymer Co (TSE:7970) Overvalued in 2026?
Based on GuruFocus' analysis, Shin-Etsu Polymer Co stock appears to be overvalued.
The current stock price of 円2,442.00 is trading 39.4% above its estimated GF Value™ of 円1,751.66.
GuruFocus considers Shin-Etsu Polymer Co to be Significantly Overvalued.
Key valuation signals for TSE:7970:
ROE %: 5.32% (30% below median its 10-year median of 7.64)
GF Value™: 円1,751.66 vs. price of 円2,442.00 (39.4% above fair value)
Industry Position: 2.1% above the Chemicals median (#563 of 1581)
No single metric tells the full story. See the TSE:7970 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shin-Etsu Polymer Co Ltd manufactures polyvinyl and rubber products. The company develops applications for using the silicone and various plastics involving materials and compounding, design, molding processes, and evaluation and analysis and meets the needs of customers engaged in the field from automobiles and information devices to semiconductors and construction materials. Shin-Etsu sells its products mainly to the electronic devices industry, housing and living materials industry, precision molding products industry and others but majority of the revenues are derived from precision molding products which includes shipping and carrying containers for semiconductor silicon wafers, materials for automatic mounting of electronic components, office automation device components.
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