Shin-Etsu Chemical Cash And Equivalents vs. Current Valuation
| SEH Stock | EUR 34.80 1.20 3.33% |
For Shin-Etsu Chemical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shin-Etsu Chemical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shin Etsu Chemical Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shin-Etsu Chemical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shin Etsu Chemical Co over time as well as its relative position and ranking within its peers.
Shin-Etsu |
Shin Etsu Chemical Current Valuation vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shin-Etsu Chemical's current stock value. Our valuation model uses many indicators to compare Shin-Etsu Chemical value to that of its competitors to determine the firm's financial worth. Shin Etsu Chemical Co is currently regarded as top stock in cash and equivalents category among its peers. It is rated fourth in current valuation category among its peers reporting about 4.11 of Current Valuation per Cash And Equivalents. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Shin-Etsu Chemical's earnings, one of the primary drivers of an investment's value.Shin-Etsu Current Valuation vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Shin-Etsu Chemical |
| = | 9.55 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Shin-Etsu Chemical |
| = | 39.26 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Shin-Etsu Current Valuation vs Competition
Shin Etsu Chemical Co is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Chemicals industry is at this time estimated at about 226.23 Billion. Shin-Etsu Chemical retains roughly 39.26 Billion in current valuation claiming about 17% of stocks in Chemicals industry.
Shin-Etsu Chemical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shin-Etsu Chemical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shin-Etsu Chemical will eventually generate negative long term returns. The profitability progress is the general direction of Shin-Etsu Chemical's change in net profit over the period of time. It can combine multiple indicators of Shin-Etsu Chemical, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Shin-Etsu Chemical Co., Ltd. manufactures and sells polyvinyl chloride , semiconductor devices, silicones, and rare earth magnets worldwide. The company was founded in 1926 and is headquartered in Tokyo, Japan. SHIN ETSU operates under Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 21735 people.
Shin-Etsu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shin-Etsu Chemical. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Shin-Etsu Chemical position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Shin-Etsu Chemical's important profitability drivers and their relationship over time.
Use Shin-Etsu Chemical in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shin-Etsu Chemical position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shin-Etsu Chemical will appreciate offsetting losses from the drop in the long position's value.Shin-Etsu Chemical Pair Trading
Shin Etsu Chemical Co Pair Trading Analysis
The ability to find closely correlated positions to Shin-Etsu Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shin-Etsu Chemical when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shin-Etsu Chemical - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shin Etsu Chemical Co to buy it.
The correlation of Shin-Etsu Chemical is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shin-Etsu Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shin Etsu Chemical moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shin-Etsu Chemical can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Shin-Etsu Chemical position
In addition to having Shin-Etsu Chemical in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Shin-Etsu Stock
To fully project Shin-Etsu Chemical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shin Etsu Chemical at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Shin-Etsu Chemical's income statement, its balance sheet, and the statement of cash flows.