Earnings quality
Compare earnings and operating cash flow for earnings quality.
Shin-Etsu Chemical Co., Ltd.
Ticker 4063 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-19 · Period end 2026-03-31
Takeaway
Worth trackingSales and operating profit both moved in a healthier direction.
operating margin is 24.7%.
Sales and operating profit moved together — keep watching margins and whether the trend persists next period.
ActionWorth tracking
OP margin24.7%
Equity ratio—
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
信越化学工業株式会社 is a Japanese listed company. Its reportable segments include Diversified Business, Infrastructure Materials, Electronics Materials, Functional Materials.
- Diversified Business
- Infrastructure Materials
- Electronics Materials
- Functional Materials
- Description Of
- Explanation Of Measurements Of Sales Profit Loss Asset Liability And Other Items For Each
Segments Diversified Business · Infrastructure Materials · Electronics Materials · Functional Materials · Description Of · Explanation Of Measurements Of Sales Profit Loss Asset Liability And Other Items For Each
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | ¥2.6T | ¥2.6T |
| Cost of sales* | ¥1.6T | ¥1.7T |
| Gross profit | ¥984.1B | ¥880.8B |
| Operating profit (loss) | ¥742.1B | ¥635.2B |
| Finance income | — | — |
| Finance costs | — | — |
| Income tax expense | ¥246.1B | ¥202.2B |
| Profit (loss) | ¥580.1B | ¥506.3B |
| Profit (loss) attributable to owners | ¥534.0B | ¥474.5B |
| Basic EPS (¥) | — | — |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥882.7B | ¥562.1B |
| Current assets | ¥3.2T | ¥3.1T |
| Non-current assets | ¥2.4T | ¥2.6T |
| Total assets | ¥5.6T | ¥5.7T |
| Short-term borrowings | ¥9.4B | ¥6.9B |
| Current liabilities | ¥537.1B | ¥522.6B |
| Non-current liabilities* | ¥261.9B | ¥496.0B |
| Total liabilities | ¥799.0B | ¥1.0T |
| Equity attributable to owners | — | — |
| Total equity | — | — |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥881.9B | ¥712.7B |
| Cash flows from investing activities | — | — |
| Cash flows from financing activities | -¥454.9B | -¥504.8B |
| Net increase (decrease) in cash | ¥292.6B | -¥320.6B |
| Cash at end of period | ¥882.7B | ¥562.1B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥2.1T | ¥2.8T | ¥2.4T | ¥2.6T | ¥2.6T | |
| Operating profit | ¥694.4B | ¥1.0T | ¥787.2B | ¥820.5B | ¥708.3B | |
| Profit to owners | — | — | — | ¥534.0B | ¥474.5B | |
| Total assets | ¥4.1T | ¥4.7T | ¥5.1T | ¥5.6T | ¥5.7T | |
| Cash & equivalents | — | — | ¥590.1B | ¥882.7B | ¥562.1B | |
| Owners’ equity | ¥3.4T | ¥4.0T | ¥4.4T | ¥4.8T | ¥4.6T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Constructive
Sales and operating profit both moved in a healthier direction.
On the income statement, revenue moved from ¥2.6T to ¥2.6T (▲ +0.5%), so the top line did not break. Gross profit only slipped from ¥984.1B to ¥880.8B, while operating profit swung from ¥742.1B to ¥635.2B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥712.7B (prior ¥881.9B), and cash on the balance sheet rose to ¥562.1B from ¥882.7B. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
Goodwill on the balance sheet fell from ¥27.4B to ¥25.6B, consistent with heavy write-downs of past acquisitions’ carrying values.
The balance sheet got heavier on leverage. Total liabilities rose to ¥1.0T while owners’ equity fell to —. ROE moved from 12.0% to 10.4%, and the equity ratio from 82.6% to 78.7%. Employee count is 27,342 vs 27,274 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 82.6% to 78.7%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100YE9I
(信越化学工業株式会社), period end 2026-03-31.