Unicharm (UNICY) AI Stock Analysis

• Market Cap: $10.44B
• Dividend Yield: N/A
• Average Volume (3M): 49.62K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.05
• Revenue Growth: -0.81%
• EPS Growth: -0.63%
• Country: US
• Employees: 1,404
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 3,725,005,900
• 10 Day Avg. Volume: 33,046
• 30 Day Avg. Volume: 49,617
• PEG Ratio: -1.00
• Price to Book (P/B): 7.23
• Price to Sales (P/S): 5.65
• P/FCF Ratio: 57.18
• Enterprise Value/Market Cap: 138.50
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 10.86
• 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: 57 Neutral
• Price Target: $3.00 ▲(4.53% Upside)

Unicharm's stock score is primarily influenced by its stable financial performance, despite concerns over declining revenue and cash flow. The technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is reasonable, but the lack of a dividend yield is a drawback for some investors.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient cost management and pricing power, supporting long-term financial stability and competitiveness.

Low Leverage

Minimal leverage enhances financial flexibility and reduces risk, allowing Unicharm to invest in growth opportunities without excessive debt burden.

Market Expansion

International market expansion diversifies revenue streams and reduces dependence on domestic markets, supporting long-term growth potential.

Negative Factors

Declining Revenue

A significant revenue decline suggests potential challenges in market demand or competitive pressures, posing risks to future growth and profitability.

Free Cash Flow Decline

Declining free cash flow growth can limit investment capacity and affect the company's ability to fund operations and strategic initiatives.

Revenue Growth Concerns

Concerns about revenue growth highlight potential structural market challenges that could impact long-term business sustainability.

Unicharm Business Overview & Revenue Model

Company Description

Unicharm Corporation (UNICY) is a leading Japanese consumer goods company specializing in the production and distribution of hygiene products. Established in 1961, Unicharm operates primarily in the sectors of personal care, pet care, and health care. Its core product offerings include disposable diapers, feminine hygiene products, adult incontinence products, and pet hygiene products. The company is known for its innovation in product design and technology, providing high-quality, user-friendly solutions for its customers across various markets.

How the Company Makes Money

Unicharm generates revenue through the sale of its extensive range of hygiene products across multiple segments. The company's primary revenue streams include sales of disposable diapers, which are a significant part of its business, and feminine hygiene products, which also contribute notably to earnings. Additionally, revenue is derived from adult incontinence products and pet care items. Unicharm leverages a combination of direct-to-consumer sales, retail partnerships, and e-commerce channels to distribute its products. Strategic partnerships with retailers and distributors enhance its market presence, while ongoing investments in research and development allow for continual product innovation, which helps maintain its competitive edge in the market. Furthermore, Unicharm has expanded into international markets, capitalizing on growth opportunities in regions such as Asia and beyond, which also contributes to its revenue growth.

Unicharm Financial Statement Overview

Summary

Unicharm exhibits strong profitability margins and low leverage, indicating financial stability. However, the significant decline in revenue and free cash flow growth raises concerns about future growth prospects.

Income Statement

Unicharm's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.11%, which is concerning. However, the company maintains a healthy gross profit margin of 38.45% and a net profit margin of 8.64%. The EBIT and EBITDA margins are also solid at 13.67% and 18.60%, respectively. Despite the revenue drop, profitability remains stable, but the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.0189, indicating minimal leverage. The return on equity is decent at 10.85%, showcasing effective use of equity to generate profits. The equity ratio is robust, suggesting a solid capital structure. Overall, the balance sheet indicates financial stability and low risk.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate has declined by 28.51% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is reasonable at 0.48, and the free cash flow to net income ratio is 0.74, indicating that the company generates sufficient cash relative to its net income. While cash flow generation is adequate, the declining trend in free cash flow growth needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	732.66B	988.98B	941.79B	898.02B	782.72B	727.48B
Gross Profit	376.82B	389.91B	351.53B	328.60B	313.64B	292.61B
EBITDA	133.09B	191.02B	180.56B	161.16B	160.80B	147.56B
Net Income	83.01B	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	311.57B	368.75B	253.77B	307.60B	307.30B	297.11B
Total Debt	14.48B	26.85B	28.57B	27.02B	38.31B	33.18B
Total Liabilities	2.15B	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	65.65B	97.77B	124.00B	59.27B	70.58B	114.75B
Operating Cash Flow	89.45B	137.10B	162.41B	92.22B	105.25B	150.25B
Investing Cash Flow	-3.78B	-73.84B	-67.53B	-7.14B	-79.84B	-41.70B
Financing Cash Flow	-44.69B	-66.79B	-67.01B	-61.65B	-45.18B	-35.24B

Unicharm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNICY, the sentiment is Negative. The current price of 2.87 is below the 20-day moving average (MA) of 2.89, below the 50-day MA of 3.04, and below the 200-day MA of 3.58, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 14.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNICY.

Unicharm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UL	73 Outperform	$142.85B	23.85	28.36%	3.74%	-0.30%	-14.60%
CHD	72 Outperform	$20.23B	26.84	18.59%	1.38%	1.45%	42.04%
PG	69 Neutral	$333.43B	20.90	31.90%	2.92%	1.23%	17.97%
CL	63 Neutral	$63.71B	22.40	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$33.11B	16.96	136.87%	5.03%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNICY	57 Neutral	$10.44B	18.02	11.28%	―	-0.81%	-0.63%

Unicharm Corporate Events

Unicharm Corporation Reports Mixed Financial Results for H1 2025

Unicharm Corporation is a leading Japanese company specializing in personal care, pet care, and other hygiene-related products, with a strong presence in both domestic and international markets.