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Unicharm (UNICY)
OTHER OTC:UNICY
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Unicharm
(OTC:UNICY)
Rating:66Neutral
Price Target:
$3.50
â–²(6.38% Upside)
Unicharm (UNICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.10B
Dividend Yield0.48%
Average Volume (3M)293.40K
Price to Earnings (P/E)20.6
Beta (1Y)0.12
Revenue Growth-1.34%
EPS Growth-7.70%
CountryUS
Employees1,404
SectorConsumer Defensive
Sector Strength45
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.03
Shares Outstanding3,725,005,900
10 Day Avg. Volume40,701
30 Day Avg. Volume293,396
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price Target
$3.50Price Target Upside6.38% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 products, which are marketed under several well-known brand names. The company's revenue streams are diversified across its key product categories: baby care, feminine care, health care, and pet care. Baby care products, such as disposable diapers, constitute a significant portion of their income, especially in emerging markets with high birth rates. Feminine care products, including sanitary napkins, contribute notably to revenue, driven by strong demand and brand loyalty. Additionally, adult incontinence products are an important growth area due to aging populations globally. Pet care products also form a significant revenue stream as pet ownership increases worldwide. The company leverages a robust distribution network and strategic partnerships with retailers and distributors to ensure its products reach a wide consumer base. Unicharm's focus on innovation and sustainability enhances its competitive edge, enabling it to maintain strong market positions and profitability.
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 presented a mixed picture with notable achievements in Japan and North America, and strategic shareholder returns. However, significant challenges were highlighted, particularly in Asia, with declining sales and profitability leading to a downward revision of the earnings forecast.Q2-2025 Updates
Positive Updates
Japan's Record Performance
Japan achieved a 4.1% increase in net sales and a 2.9% increase in core operating income, the highest results ever recorded, driven by new product success and an improved sales mix in wellness and pet care.
Strong Performance in the Middle East & North America
The Middle East and North America saw strong growth, with North America pet care sales increasing by 14.6% and income by 25.3%. In the Middle East, baby and feminine care products have seen strong sales growth.
Dividend Increase and Share Buyback
The company plans to increase the annual dividend by JPY3.3 per share to JPY18 per share, marking the 24th consecutive year of dividend increases. An additional JPY10 billion of treasury stock will be repurchased.
Insurance Income Boost
Unicharm received JPY5.3 billion in insurance income in India, contributing to an increase in interim income attributable to owners of the parent company.
Negative Updates
Sales and Core Operating Income Decline
Consolidated sales fell by 4.8% to 464.2 billion, and core operating income decreased by 22% to JPY57 billion, primarily due to strong performance in the previous year and reputational incidents in China.
Challenges in Asia
Net sales in Asia declined 14.5% and core operating income fell 69.4%, driven by challenges in China, Indonesia, and Thailand, including reputational damage and competitive pressures.
Downward Revision of Earnings Forecast
The earnings forecast for the fiscal year was revised downward due to slower-than-expected recovery in Asia and the impact of rumors affecting sales in China.
Increased Costs Affecting Profitability
Increased SG&A expenses, logistics, and strategic marketing investments in Asia led to a JPY16.1 billion decrease in core operating income.
Company Guidance
In the call, Unicharm Corporation reported a 4.8% decline in sales to JPY464.2 billion and a 22% decrease in core operating income to JPY57 billion for the second quarter of fiscal year 2025. This decline was primarily attributed to a reaction to the previous year's record-high profits and reputational issues in the feminine care segment in China. The Asian market faced competitive pressures, and strategic marketing and sales promotions further impacted earnings. However, interim income attributable to the parent company increased due to JPY5.3 billion in insurance income from India and the utilization of tax loss carryforwards. The Japan business achieved a 4.1% increase in net sales and a 2.9% increase in core operating income, marking its highest results ever recorded. Despite challenges in Asia, signs of recovery are emerging, particularly in Vietnam, and strategic investments in growth channels are expected to yield positive results from the third quarter onward. Additionally, the fiscal year forecast was revised downward due to slower recovery in Asia, while regions like Japan, North America, and the Middle East performed better than expected. The company is also committed to shareholder returns, targeting a total return ratio of 50% or more.Unicharm Financial Statement Overview
Summary
Unicharm's financial performance is solid with strong operational margins and a conservative balance sheet. Despite a recent decline in revenue growth, the company maintains a low leverage position and improving cash flow generation, supporting future growth.Income Statement
Unicharm's income statement shows a stable gross profit margin around 39%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.07% in the TTM, reflecting some pressure on profitability. The revenue growth rate is negative at -1.51% in the TTM, suggesting a recent decline in sales. Despite this, EBIT and EBITDA margins remain healthy, indicating strong operational performance.75
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.033, indicating low financial leverage and a conservative capital structure. Return on equity is strong at 11.83%, showcasing effective use of shareholder funds. The equity ratio is not explicitly calculated, but the high stockholders' equity relative to total assets suggests a solid financial position.80
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 4.02% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.45, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is healthy at 0.72, reflecting good cash flow relative to earnings.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 965.42B | 988.98B | 941.79B | 898.02B | 782.72B | 727.48B |
| Gross Profit | 377.04B | 389.91B | 351.53B | 328.60B | 313.64B | 292.61B |
| EBITDA | 175.02B | 191.02B | 180.56B | 161.16B | 160.80B | 147.56B |
| Net Income | 84.03B | 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 | 331.25B | 368.75B | 253.77B | 307.60B | 307.30B | 297.11B |
| Total Debt | 16.64B | 26.85B | 28.57B | 27.02B | 38.31B | 33.18B |
| Total Liabilities | 325.23B | 366.26B | 345.38B | 340.61B | 352.22B | 330.76B |
| Stockholders Equity | 762.95B | 773.06B | 695.72B | 618.88B | 557.64B | 493.00B |
Cash Flow | ||||||
| Free Cash Flow | 91.83B | 97.77B | 124.00B | 59.27B | 70.58B | 114.75B |
| Operating Cash Flow | 125.34B | 137.10B | 162.41B | 92.22B | 105.25B | 150.25B |
| 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
Negative
3.29
Price Trends
3.51
Negative
3.87
Negative
3.97
Negative
Market Momentum
-0.05
Positive
36.87
Neutral
6.31
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 3.29 is below the 20-day moving average (MA) of 3.43, below the 50-day MA of 3.51, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.87 is Neutral, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNICY.
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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $365.34B | 23.99 | 31.23% | 2.63% | 0.29% | 7.85% | |
73 Outperform | $151.72B | 25.33 | 28.36% | 3.18% | -0.30% | -14.60% | |
66 Neutral | $12.10B | 20.62 | 11.28% | 0.48% | -1.34% | -7.70% | |
63 Neutral | $68.00B | 23.65 | 705.21% | 2.42% | 0.05% | 3.55% | |
63 Neutral | $20.46B | 14.47 | -3.60% | 3.13% | 2.63% | -6.18% | |
61 Neutral | $39.90B | 28.79 | 13.56% | 3.96% | -2.15% | 26.65% | |
60 Neutral | $43.07B | 17.89 | 196.26% | 3.81% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
Performance Comparison
UNICY
Unicharm
3.29
-2.55
-43.66%
CL
Colgate-Palmolive
83.42
-20.07
-19.39%
KMB
Kimberly Clark
130.21
-8.03
-5.81%
PG
Procter & Gamble
156.96
-8.88
-5.35%
UL
Unilever
62.37
-0.58
-0.92%
KVUE
Kenvue, Inc.
20.75
-0.21
-1.00%
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.