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Unicharm Corporation (JP:8113)
:8113
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Unicharm
(8113)
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Select Model
Rating:62Neutral
Price Target:
¥952.00
▲(6.97% Upside)
Unicharm's overall stock score is 62, driven by strong financial stability but hindered by declining revenue and cash flow growth. Technical analysis indicates bearish momentum, and while valuation is fair, it does not compensate for the negative trends.
Positive Factors
Strong Balance Sheet
A strong balance sheet with minimal leverage provides financial stability, allowing Unicharm to invest in growth opportunities and withstand economic downturns.
Operational Efficiency
High EBIT and EBITDA margins indicate strong operational efficiency, enabling Unicharm to maintain profitability even in challenging market conditions.
Market Position
Unicharm's reputation for innovation strengthens its competitive position, helping it capture market share and sustain long-term growth.
Negative Factors
Declining Revenue Growth
A significant decline in revenue growth can impact future profitability and limit the company's ability to invest in new opportunities.
Free Cash Flow Decline
The decline in free cash flow growth may constrain Unicharm's ability to fund operations and strategic initiatives, affecting long-term financial health.
Earnings Decline
Declining earnings per share growth suggests challenges in maintaining profitability, which could affect investor confidence and future investment capacity.
Unicharm (8113) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.63T
Dividend Yield3.47%
Average Volume (3M)5.23M
Price to Earnings (P/E)18.8
Beta (1Y)0.31
Revenue Growth-1.56%
EPS Growth-1.15%
CountryJP
Employees1,404
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)10.84
Shares Outstanding1,862,502,900
10 Day Avg. Volume4,513,930
30 Day Avg. Volume5,229,163
Financial Highlights & Ratios
PEG Ratio-6.61
Price to Book (P/B)2.97
Price to Sales (P/S)2.32
P/FCF Ratio23.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Unicharm Business Overview & Revenue Model
Company DescriptionUnicharm 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 MoneyUnicharm 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
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
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
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
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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 961.15B | 988.98B | 941.79B | 898.02B | 782.72B | 727.48B |
| Gross Profit | 369.58B | 389.91B | 351.53B | 328.60B | 313.64B | 292.61B |
| EBITDA | 178.75B | 185.00B | 180.56B | 161.16B | 160.80B | 147.56B |
| Net Income | 83.00B | 81.84B | 86.05B | 67.61B | 72.75B | 52.34B |
Balance Sheet | ||||||
| Total Assets | 1.18T | 1.24T | 1.13T | 1.05T | 987.65B | 893.41B |
| Cash, Cash Equivalents and Short-Term Investments | 224.73B | 353.94B | 253.77B | 307.60B | 307.30B | 297.11B |
| Total Debt | 14.48B | 26.85B | 28.57B | 27.02B | 38.31B | 33.18B |
| Total Liabilities | 316.99B | 366.26B | 345.38B | 340.61B | 352.22B | 330.76B |
| Stockholders Equity | 767.42B | 773.06B | 695.72B | 618.88B | 557.64B | 493.00B |
Cash Flow | ||||||
| Free Cash Flow | 88.38B | 97.77B | 124.00B | 59.27B | 70.58B | 114.75B |
| Operating Cash Flow | 119.97B | 137.10B | 162.41B | 92.22B | 105.25B | 150.25B |
| Investing Cash Flow | -46.79B | -73.84B | -67.53B | -7.14B | -79.84B | -41.70B |
| Financing Cash Flow | -76.49B | -66.79B | -67.01B | -61.65B | -45.18B | -35.24B |
Unicharm Technical Analysis
Negative
890.00
Price Trends
911.33
Negative
941.88
Negative
1031.63
Negative
Market Momentum
-4.95
Negative
46.38
Neutral
30.57
Neutral
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 890 is above the 20-day moving average (MA) of 889.00, below the 50-day MA of 911.33, and below the 200-day MA of 1031.63, indicating a neutral trend. The MACD of -4.95 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8113.
Unicharm Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥454.19B | 15.77 | 9.77% | 1.73% | 2.18% | 60.81% | |
71 Outperform | ¥598.27B | 16.35 | 13.22% | 1.53% | 18.35% | 31.87% | |
69 Neutral | ¥193.75B | 19.41 | ― | 4.66% | 11.38% | 79.21% | |
66 Neutral | ¥2.84T | 23.95 | 11.70% | 2.41% | 4.62% | 47.68% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | ¥1.63T | 18.80 | 10.79% | 3.47% | -1.56% | -1.15% | |
57 Neutral | ¥407.01B | 35.38 | 5.37% | 1.95% | -3.33% | 13.76% |
* Consumer Defensive Sector Average
JP:8113
Unicharm
890.00
-307.94
-25.71%
JP:4452
Kao
6,269.00
503.21
8.73%
JP:4967
Kobayashi Pharmaceutical Co
5,488.00
-112.33
-2.01%
JP:4912
Lion
1,673.50
70.75
4.41%
JP:4527
Rohto Pharmaceutical Co
2,577.00
-82.03
-3.09%
JP:7956
Pigeon Corporation
1,619.50
280.75
20.97%
Unicharm Corporate Events
Unicharm Reports Decline in Nine-Month Financial Results Amid Market Challenges
Nov 7, 2025
Unicharm Corporation reported a decline in its consolidated financial results for the nine months ending September 30, 2025, with net sales decreasing by 3.9% compared to the previous year. Despite the drop in sales and core operating income, the company saw a slight increase in profit attributable to owners of the parent, indicating resilience in its profitability amidst challenging market conditions.
The most recent analyst rating on (JP:8113) stock is a Buy with a Yen1097.00 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.