Unicharm (8113) AI Stock Analysis

• Market Cap: ¥1.98T
• Dividend Yield: 3.47%
• Average Volume (3M): 5.23M
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.32
• Revenue Growth: -1.56%
• EPS Growth: -1.15%
• Country: JP
• Employees: 1,404
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 2.62
• Shares Outstanding: 1,862,502,900
• 10 Day Avg. Volume: 4,513,930
• 30 Day Avg. Volume: 5,229,163
• PEG Ratio: -1.22
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 15.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,163.00 ▲(30.67% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is primarily driven by resilient financial strength (very low leverage and solid free cash flow) and supportive technical momentum (price above major moving averages with positive MACD). These positives are partially offset by less attractive valuation (P/E ~28 with a modest yield) and recent income-statement cooling (slightly negative 2025 revenue and margin compression).

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt and an improving debt-to-equity ratio give Unicharm durable financial flexibility. This reduces refinancing and interest-rate risk, supports investment in R&D and capacity, and allows the firm to prioritize organic growth or opportunistic M&A without stressing cash flow.

Strong free cash flow generation

Consistently positive and rising free cash flow indicates high quality earnings and internal funding for working capital, capex, and shareholder returns. Robust FCF supports long-term investments in product innovation and distribution, sustaining competitive positioning.

Resilient CPG business with demographic tailwinds

Recurring-purchase categories (diapers, feminine care, adult incontinence, pet care) provide stable volume and predictable cash flows. Aging populations in key Asian markets and entrenched retail distribution support long-term demand and pricing power for established brands.

Negative Factors

Recent revenue decline and margin compression

A declining top line and squeezed margins suggest pressure on price or cost structure that can erode long-term profitability if persistent. Slower revenue makes it harder to leverage fixed costs and fund marketing or R&D, risking competitive position over time.

Operating cash flow coverage weakness versus debt

OCF covering below 1x of debt indicates a mismatch between near-term cash generation and liabilities under stress scenarios. While absolute debt is low, limited OCF coverage reduces buffer for unexpected shocks or larger investments without drawing on cash reserves or capital markets.

Negative recent top-line and EPS growth

Material negative growth in revenue and EPS signals a deterioration in operational momentum. If these trends continue, they can constrain reinvestment, reduce scale advantages, and pressure returns on capital, limiting the firm's ability to finance long-term growth initiatives organically.

Unicharm Business Overview & Revenue Model

Company Description

Unicharm Corporation engages in the manufacture and sale of baby and childcare, feminine care, health care, cosmetic, household, and pet care products in Japan and internationally. Its baby and child care products, including disposable diapers and baby wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; and feminine care products comprise napkins, tampons, panty liners, sanitary short, and other feminine care products under the Sofy, Center-In, and Unicharm brands. The company's wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand; and masks under the Unicharm brands. It also provides home care products, including cleaning sheets under the Wave brand; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, Aiken Genki, and Neko Genki brands. Further, it is involved in the manufacture and sale of industrial materials, food-packaging materials, etc. The company was incorporated in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Unicharm generates revenue primarily through the sale of its personal care and hygiene products across various markets. The company operates on a direct sales model, distributing its products to retailers and wholesalers, while also selling directly to consumers through e-commerce platforms. Key revenue streams include the sale of disposable diapers, which is a major segment driven by demand from parents; feminine care products, which benefit from brand loyalty and product innovation; and health care products that cater to the aging population. Additionally, Unicharm has formed strategic partnerships with various retailers and distributors to expand its market reach, particularly in Asia and other international markets, which contributes to its overall earnings. The company also invests in marketing and brand development to strengthen its market position and drive sales growth.

Unicharm Financial Statement Overview

Summary

Strong overall fundamentals supported by an exceptionally low-leverage balance sheet (debt-to-equity ~0.01) and consistently positive, improving free cash flow. The main detractor is softer recent operating performance, with revenue slightly negative in 2025 (-1.65%) and margin compression versus 2023–2024.

Income Statement

Unicharm shows solid profitability with healthy gross profit and operating margins, but momentum has cooled. Revenue growth turned slightly negative in 2025 (-1.65%) after modest growth in 2023–2024, and profitability stepped down in 2025 versus 2023–2024 (lower operating and net margins). Overall, earnings power remains good for the industry, but recent margin compression and softer top-line trends are key watch items.

Balance Sheet

The balance sheet is a clear strength: leverage is very low, with debt-to-equity improving to ~0.01 in 2025 from ~0.03–0.07 in prior years, alongside a large equity base and sizable assets. Returns on equity were consistently around low-teens in 2021–2024, indicating solid capital efficiency without heavy reliance on debt. The main limitation is that 2025 return on equity is not provided, so the latest-period return profile can’t be confirmed.

Cash Flow

Cash generation is strong, with free cash flow consistently positive and growing sharply in 2025 (+16.37%) after a decline in 2024. Free cash flow covers a large portion of net income (roughly 64%–78% across the periods shown), supporting quality of earnings and financial flexibility. A weakness is that operating cash flow covers less than half of total debt in recent years (coverage below 1x), though this risk is mitigated by the company’s low absolute debt level.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	945.27B	988.98B	941.79B	898.02B	782.72B
Gross Profit	355.85B	389.91B	351.53B	328.60B	313.64B
EBITDA	156.69B	185.00B	180.56B	161.16B	160.80B
Net Income	65.21B	81.84B	86.05B	67.61B	72.75B
Balance Sheet
Total Assets	1.22T	1.24T	1.13T	1.05T	987.65B
Cash, Cash Equivalents and Short-Term Investments	253.09B	353.94B	253.77B	307.60B	307.30B
Total Debt	11.05B	26.85B	28.57B	27.02B	38.31B
Total Liabilities	331.92B	366.26B	345.38B	340.61B	352.22B
Stockholders Equity	794.71B	773.06B	695.72B	618.88B	557.64B
Cash Flow
Free Cash Flow	102.84B	97.77B	124.00B	59.27B	70.58B
Operating Cash Flow	131.47B	137.10B	162.41B	92.22B	105.25B
Investing Cash Flow	-55.94B	-73.84B	-67.53B	-7.14B	-79.84B
Financing Cash Flow	-86.64B	-66.79B	-67.01B	-61.65B	-45.18B

Unicharm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 890.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8113, the sentiment is Positive. The current price of 890 is below the 20-day moving average (MA) of 985.97, below the 50-day MA of 933.69, and below the 200-day MA of 992.27, indicating a bullish trend. The MACD of 37.49 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8113.

Unicharm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8113	78 Outperform	¥1.98T	28.98	10.79%	3.47%	-1.56%	-1.15%
7956	77 Outperform	¥196.44B	22.92	―	4.66%	11.38%	79.21%
4912	76 Outperform	¥489.61B	18.09	9.77%	1.73%	2.18%	60.81%
4527	71 Outperform	¥564.73B	15.95	13.22%	1.53%	18.35%	31.87%
4452	70 Outperform	¥2.98T	25.29	11.70%	2.41%	4.62%	47.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4911	58 Neutral	¥1.24T	-30.08	―	2.11%	-1.20%	-2896.72%

Unicharm Corporate Events

Unicharm Advances Share Buyback with ¥7.46 Billion Treasury Share Repurchase

Unicharm has repurchased 7,313,300 shares of its common stock for approximately 7.46 billion yen via the Tokyo Stock Exchange’s off-auction own share repurchase system ToSTNeT-3 on February 17, 2026. This transaction forms part of a broader buyback program authorized by the board on February 12, 2026, which allows for up to 30 million shares and 19 billion yen in repurchases through December 17, 2026, signaling continued emphasis on capital efficiency and shareholder value.

As of February 17, 2026, the company has used about 7.46 billion yen of the authorized 19 billion yen limit, acquiring roughly a quarter of the maximum 30 million shares permitted under the program. The ongoing buyback is expected to support earnings per share, optimize Unicharm’s capital structure and potentially bolster its share price, underscoring management’s confidence in the company’s financial position and future prospects.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Sets ToSTNeT-3 Buyback Tranche Within ¥19 Billion Share Repurchase Plan

Unicharm has approved a specific tranche of its previously announced share buyback, opting to repurchase up to 7.35 million shares of common stock, or about 0.42% of its outstanding shares excluding treasury stock, via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system. The purchases, capped at roughly ¥7.5 billion at a fixed price of ¥1,020 per share, are scheduled for execution at the market opening on February 17, 2026, and form part of a broader buyback program of up to 30 million shares and ¥19 billion through December 2026.

The move underscores Unicharm’s continued emphasis on capital efficiency and shareholder returns, using a concentrated off-auction transaction to swiftly retire shares without prolonged market impact. While the company notes that market conditions could limit the actual volume acquired, the buyback framework signals confidence in its financial position and may provide incremental support to earnings per share and share price over the medium term.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Launches ¥19 Billion Share Buyback to Boost Shareholder Returns

Unicharm’s board has approved a share buyback of up to 30 million common shares, representing about 1.72% of its outstanding stock excluding treasury shares. The company plans to spend up to 19 billion yen on the repurchase, to be executed via purchases on the Tokyo Stock Exchange, including ToSTNeT-3, between February 13 and December 17, 2026.

The buyback is aimed at enhancing shareholder returns and giving Unicharm greater flexibility in its capital policy amid a changing business environment. This move signals management’s confidence in the firm’s financial position and may support earnings per share and capital efficiency metrics, potentially benefiting existing shareholders through a tighter share float.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Outlines Fiscal 2025 Performance and Cautions on Future Risks

Unicharm Corporation held an investor meeting to present materials covering its financial performance for the fiscal year ended December 31, 2025. The presentation outlines the company’s results for the period from January 1 to December 31, 2025, while emphasizing that any performance projections are subject to risks and uncertainties such as market competition and foreign exchange fluctuations, which could materially affect actual outcomes.

The disclosure underscores the company’s intent to keep investors informed about its recent fiscal year, but also signals cautious guidance amid external risk factors that may influence future performance. This stance highlights management’s awareness of volatile market conditions and indicates that stakeholders should account for potential variability when assessing Unicharm’s outlook and valuation.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Warns of Profit Drop for 2025 but Signals Earnings Rebound in 2026

Unicharm reported a 4.4% decline in net sales to ¥945.3 billion and a sharper 21.4% drop in core operating income for the year ended December 31, 2025, with profit attributable to owners of parent falling 20.3%. Despite weaker earnings, equity attributable to owners of parent rose to ¥794.7 billion, the equity ratio improved to 65.0%, and cash and cash equivalents remained robust at ¥253.1 billion.

The company cut its annual dividend to ¥18 per share for 2025, reflecting higher payout and dividend-to-equity ratios after a 3-for-1 stock split effective January 1, 2025. For fiscal 2026, Unicharm forecasts a recovery, guiding for 6.8% higher net sales to ¥1.01 trillion and a near 25% rebound in core operating income, signaling management’s expectation of improved profitability and a gradual restoration of shareholder returns.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Slashes 2025 Earnings Forecast on Asia Setbacks and One-Off Charges

Unicharm has revised downward its consolidated forecast for the fiscal year ending December 31, 2025, cutting expected net sales, core operating income, profit before tax, and profit attributable to owners of the parent compared with its August 2025 projections and with FY2024 results. While performance in regions such as North America and the Middle East exceeded expectations, it was insufficient to offset weakness in China and Indonesia, where the Chinese feminine care business was hit by renewed reputational damage in October 2025 and Indonesian operations faced shipment adjustments amid distributor changes in a tough market environment. Profitability will be further pressured by approximately ¥6.0 billion in impairment losses on Asian assets and about ¥6.9 billion in one-time charges tied to the revaluation of GST-related assets in India following legal changes, leading to a sharp downgrade in profit before tax and earnings per share and signaling ongoing operational and regulatory challenges in key Asian markets.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.