Unicharm Corporation (JP:8113)
:8113
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Unicharm
(8113)
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Rating:65Neutral
Price Target:
¥1,016.00
▲(14.16% Upside)
Action:Downgraded
Date:05/09/26
The score is primarily supported by strong financial fundamentals—especially the exceptionally low leverage and solid free-cash-flow generation—offset by an expensive valuation (high P/E) and a mixed-to-weak technical trend with negative MACD and price below key moving averages.
Positive Factors
Very low leverage / conservative balance sheet
Extremely low debt and a large equity base materially reduce financial risk and preserve strategic optionality. This durable strength supports capital allocation for capex, working capital, dividends or M&A, and helps the firm withstand demand cycles without pressuring liquidity.
Negative Factors
Softening profitability / falling net margin
A multi-percentage-point decline in net margin signals structural margin pressure or rising costs that erode return on capital. Persistently lower margins can reduce reinvestment capacity, depress ROE and limit the company's ability to sustain prior levels of shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / conservative balance sheet
Extremely low debt and a large equity base materially reduce financial risk and preserve strategic optionality. This durable strength supports capital allocation for capex, working capital, dividends or M&A, and helps the firm withstand demand cycles without pressuring liquidity.
Read all positive factors
Unicharm (8113) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.73T
Dividend Yield3.47%
Average Volume (3M)5.23M
Price to Earnings (P/E)20.4
Beta (1Y)0.38
Revenue Growth-2.89%
EPS Growth-31.75%
CountryJP
Employees1,404
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)34.52
Shares Outstanding1,862,502,900
10 Day Avg. Volume4,513,930
30 Day Avg. Volume5,229,163
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.97
Price to Sales (P/S)1.66
P/FCF Ratio15.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,200.00Price Target Upside34.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)46.78
Revenue Forecast (FY)¥1.00T
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...
How the Company Makes Money
Unicharm primarily makes money by selling branded consumer packaged goods (CPG) at scale through retail and wholesale distribution channels. Its core revenue streams come from (1) Baby care: sales of disposable diapers and related baby hygiene pro...
Unicharm Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 951.93B | 945.27B | 988.98B | 941.79B | 898.02B | 782.72B |
| Gross Profit | 360.48B | 355.85B | 376.38B | 340.39B | 318.24B | 303.11B |
| EBITDA | 159.05B | 156.69B | 185.00B | 171.23B | 161.05B | 160.41B |
| Net Income | 60.06B | 65.21B | 81.84B | 86.05B | 67.61B | 72.75B |
Balance Sheet | ||||||
| Total Assets | 1.19T | 1.22T | 1.24T | 1.13T | 1.05T | 987.65B |
| Cash, Cash Equivalents and Short-Term Investments | 233.35B | 253.09B | 353.94B | 334.38B | 292.95B | 293.05B |
| Total Debt | 10.45B | 11.05B | 61.83B | 61.34B | 57.12B | 75.46B |
| Total Liabilities | 305.63B | 331.92B | 366.26B | 345.38B | 340.61B | 352.22B |
| Stockholders Equity | 783.67B | 794.71B | 773.06B | 695.72B | 618.88B | 557.64B |
Cash Flow | ||||||
| Free Cash Flow | 105.80B | 102.84B | 97.77B | 124.00B | 59.27B | 70.58B |
| Operating Cash Flow | 132.83B | 131.47B | 137.10B | 162.41B | 92.22B | 105.25B |
| Investing Cash Flow | -102.25B | -55.94B | -73.84B | -67.45B | -4.28B | -79.84B |
| Financing Cash Flow | -96.83B | -86.64B | -66.79B | -67.09B | -64.52B | -45.18B |
Unicharm Technical Analysis
Positive
890.00
Price Trends
942.05
Positive
948.03
Positive
955.92
Negative
Market Momentum
-3.15
Negative
51.20
Neutral
70.72
Neutral
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 944.08, below the 50-day MA of 942.05, and below the 200-day MA of 955.92, indicating a neutral trend. The MACD of -3.15 indicates Negative momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 70.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥219.77B | 21.15 | ― | 4.66% | 5.68% | -2.85% | |
72 Outperform | ¥590.96B | 15.88 | 12.66% | 1.53% | 11.37% | 11.35% | |
65 Neutral | ¥1.73T | 20.40 | 10.79% | 3.47% | -2.89% | -31.75% | |
64 Neutral | ¥2.68T | 22.54 | 11.50% | 2.41% | 3.60% | 13.80% | |
64 Neutral | ¥428.00B | 27.36 | 9.09% | 1.73% | 3.10% | 27.99% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | ¥1.14T | 38.07 | ― | 2.11% | 0.45% | -836.50% |
* Consumer Defensive Sector Average
JP:8113
Unicharm
948.50
-168.95
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Unicharm Corporate Events
Unicharm Outlines First-Quarter FY2026 Performance and Risk Factors
May 8, 2026
Unicharm reported on its financial performance for the first quarter of the fiscal year ending December 31, 2026, covering the period from January 1 to March 31. The company presented investor meeting materials that outline its results and note th...
Unicharm Lifts Dividend and Profit Outlook Despite Q1 Earnings Dip
May 8, 2026
Unicharm reported consolidated net sales of ¥234.2 billion for the quarter ended March 31, 2026, a 2.9% year-on-year increase, with core operating income up 8.5% to ¥31.5 billion, signaling improved underlying business performance despit...
Unicharm Completes Disposal of Treasury Shares for Executive Restricted Stock Plan
Apr 16, 2026
Unicharm has completed the payment process for the disposal of 313,800 treasury shares to be used as restricted share-based remuneration, following a board resolution passed on March 19, 2026. The shares, priced at ¥958.1 each for a total of ...
Unicharm Nears ¥19 Billion Limit in Accelerated Share Buyback Program
Apr 3, 2026
Unicharm Corporation has completed a share buyback of 584,800 common shares for approximately 549 million yen between April 1 and April 3, 2026, through purchases on the Tokyo Stock Exchange, including via the ToSTNeT-3 off-auction repurchase syst...
Unicharm Accelerates Share Buyback, Nears Cap on 19 Billion Yen Program
Apr 1, 2026
Unicharm has disclosed progress on its ongoing share buyback program, reporting the purchase of 10,150,400 common shares for about 9.52 billion yen between March 1 and March 31, 2026, via the Tokyo Stock Exchange, including ToSTNeT-3 transactions....
Unicharm Affirms Independence Despite Major Stake Held by Unitec
Mar 23, 2026
Unicharm has disclosed information regarding its relationship with Unitec Corporation, identified as an other associated company holding 26.73% of Unicharm’s voting rights as of December 31, 2025. Despite this significant stake, Unicharm emp...
Unicharm to Allocate Treasury Shares as Restricted Stock to Executives
Mar 19, 2026
Unicharm will dispose of 313,800 treasury shares on April 16, 2026, allocating them as restricted share-based remuneration to 24 internal executives, including directors, executive officers, and senior associate officers, at ¥958.1 per share ...
Unicharm Advances Share Buyback, Spending ¥8.9 Billion on Treasury Stock
Mar 2, 2026
Unicharm Corporation has reported progress on its share buyback program, disclosing that it acquired 8,676,400 shares of common stock for approximately ¥8.93 billion between February 13 and February 28, 2026, through purchases on the Tokyo St...
Unicharm Advances Share Buyback with ¥7.46 Billion Treasury Share Repurchase
Feb 17, 2026
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 ...
Unicharm Sets ToSTNeT-3 Buyback Tranche Within ¥19 Billion Share Repurchase Plan
Feb 16, 2026
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 ExchangeR...
Unicharm Launches ¥19 Billion Share Buyback to Boost Shareholder Returns
Feb 12, 2026
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 v...
Unicharm Outlines Fiscal 2025 Performance and Cautions on Future Risks
Feb 12, 2026
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, ...
Unicharm Warns of Profit Drop for 2025 but Signals Earnings Rebound in 2026
Feb 12, 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, equit...
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.