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Unicharm Corporation (JP:8113)
:8113
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Unicharm (8113) AI Stock Analysis

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JP:8113

Unicharm

(OTC:8113)

Rating:66Neutral
Price Target:
¥1,091.00
▲(10.92% Upside)
Unicharm's overall stock score reflects strong financial health and attractive dividend yield, but is tempered by bearish technical indicators and challenges in the Asian market. The company's robust performance in Japan and North America is a positive, yet the downward revision of forecasts due to issues in China and other Asian markets presents a risk. Investors should be cautious of the current bearish trend and monitor developments in the Asian market closely.

Unicharm (8113) vs. iShares MSCI Japan ETF (EWJ)

Unicharm Business Overview & Revenue Model

Company DescriptionUnicharm Corporation, listed on the Tokyo Stock Exchange under the ticker 8113, is a leading Japanese company specializing in the manufacturing and distribution of personal care products. The company's core product offerings include baby care items such as diapers, feminine care products like sanitary napkins, and adult incontinence solutions. Unicharm also produces pet care products and health care goods, catering to a broad consumer base across Asia, the Middle East, and other global markets.
How the Company Makes MoneyUnicharm generates revenue primarily through the sale of its diverse product lines, which are distributed through various retail channels, including supermarkets, drugstores, and online platforms. The company's key revenue streams are its baby care and feminine care segments, which contribute significantly to its earnings. Unicharm's global presence allows it to capitalize on growing markets in Asia and other regions. Strategic partnerships and investments in research and development also play a crucial role in maintaining its competitive edge and expanding its product offerings. Furthermore, the company invests in marketing and brand development to enhance consumer recognition and loyalty, driving sales across its product categories.

Unicharm Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in Japan and North America, along with strategic shareholder returns. However, significant challenges in Asia, particularly China, and a downward revision of forecasts indicate a cautious outlook.
Q2-2025 Updates
Positive Updates
Japan Business Performance
The Japan business achieved a 4.1% increase in net sales and a 2.9% increase in core operating income, marking the highest results ever recorded. This was driven by successful new products and an improved sales mix in wellness and pet care.
Insurance Income in India
Interim income attributable to owners of the parent company increased mainly due to the receipt of JPY5.3 billion in insurance income in India.
Pet Care Growth in North America
Net sales increased 14.6% and income up 25.3% in North America's pet care business, driven by new dog treats and strategic value shifting.
Middle East and Egypt Performance
Net sales increased 2.3%, core operating income rose 12.7%, and core operating margin increased to 14.6% due to strong performance in the Middle East and Egypt.
Dividend Increase and Shareholder Return
The annual dividend was increased by JPY3.3 per share to JPY18 per share, marking the 24th consecutive fiscal year of dividend increase. Additionally, an additional JPY10 billion of treasury stock will be repurchased.
Negative Updates
Decline in Core Operating Income
Core operating income decreased by JPY16.1 billion this fiscal year, with a significant decline in Asia, particularly in China, Indonesia, and Thailand.
Challenges in the Chinese Market
Sales and profits declined in China due to reputational incidents in feminine care and increased competition. This led to aggressive strategic investments impacting profits.
Difficult Performance in Asia
Net sales in Asia declined 14.5% and core operating income fell 69.4%, with challenges in China, Indonesia, and Thailand affecting performance.
Revised Downward Forecast
The earnings forecast for the fiscal year was revised downward due to slower-than-expected recovery in Asia and challenges in the feminine care segment in China.
Company Guidance
In the second quarter of the fiscal year ending December 31, 2025, Unicharm Corporation reported consolidated sales of JPY464.2 billion, a decline of 4.8%, and a core operating income of JPY57 billion, down 22% compared to the previous year. The decline was attributed to the reaction to record-high profits from the same period last year and reputational incidents affecting feminine care sales in China. Strategic marketing investments in Asia and rising logistics and DX-related costs in Japan also pressured earnings. Interim income attributable to owners increased due to JPY5.3 billion in insurance income from India and the utilization of tax loss carryforwards. In Japan, net sales increased by 4.1% and core operating income by 2.9%, driven by the penetration of the value shift in wellness care and pet care. In contrast, Asia saw a significant decline in net sales by 14.5% and core operating income by 69.4%, primarily due to challenges in China, Indonesia, and Thailand. For the rest of the world, net sales increased by 2.3%, and core operating income rose by 12.7%, with a strong performance in North America's pet care business and the Middle East. The company revised its earnings forecast downward, citing slower-than-expected recovery in Asia, ongoing challenges in China, and demographic shifts affecting the baby care market. Unicharm aims for a total return ratio of 50% or more for shareholders, planning to increase dividends and acquire additional treasury stock.

Unicharm Financial Statement Overview

Summary
Unicharm demonstrates strong financial health with efficient operations and a solid balance sheet. While revenue growth has been inconsistent, the company maintains healthy profit margins and low leverage. Cash flow generation is improving, though there is potential for further enhancement. Overall, Unicharm is well-positioned financially, but should focus on stabilizing revenue growth to sustain long-term success.
Income Statement
78
Positive
Unicharm's income statement shows a stable gross profit margin around 39%, indicating efficient cost management. The net profit margin has slightly decreased to 9.07% in TTM, reflecting some pressure on profitability. Revenue growth has been inconsistent, with a recent decline of 1.51% in TTM, which could be a concern if it continues. However, EBIT and EBITDA margins remain healthy, suggesting strong operational efficiency.
Balance Sheet
85
Very Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.033, indicating minimal leverage and financial risk. The return on equity is strong at 11.83%, showcasing effective use of equity capital. The equity ratio is solid, reflecting a stable financial structure with a good proportion of equity financing.
Cash Flow
72
Positive
Cash flow analysis reveals a positive free cash flow growth rate of 4.02% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is moderate at 0.45, suggesting decent cash conversion. However, the free cash flow to net income ratio of 0.72 indicates some room for improvement in cash flow efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue965.42B988.98B941.79B898.02B782.72B727.48B
Gross Profit373.46B389.91B351.53B328.60B313.64B292.61B
EBITDA178.00B185.00B180.56B161.16B160.80B147.56B
Net Income84.03B81.84B86.05B67.61B72.75B52.34B
Balance Sheet
Total Assets1.18T1.24T1.13T1.05T987.65B893.41B
Cash, Cash Equivalents and Short-Term Investments331.25B353.94B253.77B307.60B307.30B297.11B
Total Debt16.64B26.85B28.57B27.02B38.31B33.18B
Total Liabilities325.23B366.26B345.38B340.61B352.22B330.76B
Stockholders Equity762.95B773.06B695.72B618.88B557.64B493.00B
Cash Flow
Free Cash Flow91.83B97.77B124.00B59.27B70.58B114.75B
Operating Cash Flow125.34B137.10B162.41B92.22B105.25B150.25B
Investing Cash Flow-13.21B-73.84B-67.53B-7.14B-79.84B-41.70B
Financing Cash Flow-65.81B-66.79B-67.01B-61.65B-45.18B-35.24B

Unicharm Technical Analysis

Technical Analysis Sentiment
Negative
Last Price983.60
Price Trends
50DMA
1028.06
Negative
100DMA
1112.41
Negative
200DMA
1171.39
Negative
Market Momentum
MACD
-15.33
Positive
RSI
39.83
Neutral
STOCH
14.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8113, the sentiment is Negative. The current price of 983.6 is below the 20-day moving average (MA) of 1009.11, below the 50-day MA of 1028.06, and below the 200-day MA of 1171.39, indicating a bearish trend. The MACD of -15.33 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8113.

Unicharm Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$1.80T20.5611.28%3.15%-1.04%-6.98%
63
Neutral
$20.54B14.42-2.84%3.14%2.08%-6.12%
$21.16B27.6510.99%3.21%
$2.69B34.105.72%1.89%
$2.91B21.107.29%2.99%
$3.98B14.5413.33%1.27%
75
Outperform
¥215.40B22.86
4.22%9.02%46.48%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8113
Unicharm
983.60
-693.22
-41.34%
KAOCF
Kao
45.32
1.58
3.61%
KBYPF
Kobayashi Pharmaceutical Co
36.02
-1.89
-4.99%
LIOPF
Lion
10.64
0.79
8.02%
RPHCF
Rohto Pharmaceutical Co
14.72
-9.66
-39.62%
JP:7956
Pigeon Corporation
1,800.50
298.65
19.89%

Unicharm Corporate Events

Unicharm Reports Decline in H1 2025 Financial Performance Amid Stock Split
Aug 5, 2025

Unicharm Corporation reported a decline in its financial performance for the first half of 2025, with net sales decreasing by 4.8% compared to the previous year. Despite a slight increase in profit attributable to owners of the parent, the company’s core operating income and profit before tax saw significant decreases. The company also announced a 3-for-1 stock split effective January 1, 2025, impacting dividend payments and earnings per share calculations.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm’s Treasury Share Acquisition Progress Update
Aug 1, 2025

Unicharm Corporation announced the progress of its treasury share acquisition, revealing that no shares were acquired in July 2025. The company had previously resolved to acquire up to 25 million shares by December 2025, but as of July 31, 2025, it had acquired over 10 million shares, valued at nearly 12 billion JPY. This move is part of Unicharm’s strategic financial management, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1600.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Reports Progress on Treasury Share Acquisition
Jul 1, 2025

Unicharm Corporation announced the progress of its treasury share acquisition, revealing that no shares were acquired in June 2025 despite a prior resolution to purchase up to 25 million shares. As of June 30, 2025, the company had acquired over 10 million shares, reflecting its ongoing strategy to manage its capital structure and enhance shareholder value.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Strengthens Philippine Subsidiary with Capital Increase
Jun 23, 2025

Unicharm Corporation has announced a capital increase for its subsidiary, UNICHARM (PHILIPPINES) CORP., which will result in the subsidiary becoming a specified subsidiary. This move is aimed at strengthening the financial foundation of the Philippine subsidiary, which has been experiencing financial challenges. Despite the capital increase, the impact on Unicharm’s consolidated financial results is expected to be negligible.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Expands into East Africa with New Joint Venture
Jun 18, 2025

Unicharm Corporation has announced the establishment of a joint venture, Sofy East Africa Limited, in collaboration with Toyota Tsusho Corporation and CFAO Kenya Limited. This venture aims to expand Unicharm’s business in Kenya and neighboring countries by enhancing local production and distribution capabilities. The initiative is expected to promote the spread of sanitary products in the region, support women’s social advancement, and address social issues, thereby strengthening Unicharm’s market position in East Africa.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Unicharm Reports Progress on Treasury Share Acquisition
Jun 2, 2025

Unicharm Corporation announced the progress of its treasury share acquisition plan, revealing that no shares were acquired in May 2025. The company had previously set a resolution to acquire up to 25 million shares by December 2025, with a maximum budget of 22 billion JPY. As of the end of May, Unicharm had acquired over 10 million shares, valued at approximately 12 billion JPY, indicating a strategic move to optimize its capital structure.

The most recent analyst rating on (JP:8113) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Unicharm stock, see the JP:8113 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025