Unicharm (UNICY)
OTHER OTC:UNICY
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Unicharm
(OTC:UNICY)
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Rating:70Outperform
Price Target:
$3.50
▲(24.11% Upside)
Action:UpgradedDate:02/18/26
The score is primarily supported by strong financial quality—particularly the conservative balance sheet and solid long-term growth—partly offset by recent margin/profitability pressure and inconsistent free cash flow. Technically, the uptrend is intact but overbought signals add near-term risk, while valuation looks elevated at ~27x earnings with no dividend yield provided.
Positive Factors
Conservative balance sheet
Sustained very low leverage and a meaningful debt reduction in 2025 give the company durable financial flexibility. This supports resilience through demand cycles, funds strategic investments or regional expansion without raising costly external financing, and preserves credit optionality.
Negative Factors
Margin pressure
Earnings and margin compression despite higher sales suggests cost inflation, reinvestment, or mix shifts are eroding profitability. Persistent margin pressure can reduce return on capital, limit internal funding for growth, and require structural cost or pricing responses to restore margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Sustained very low leverage and a meaningful debt reduction in 2025 give the company durable financial flexibility. This supports resilience through demand cycles, funds strategic investments or regional expansion without raising costly external financing, and preserves credit optionality.
Read all positive factors
Unicharm (UNICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.20B
Dividend YieldN/A
Average Volume (3M)49.62K
Price to Earnings (P/E)22.5
Beta (1Y)0.06
Revenue Growth-0.81%
EPS Growth-0.63%
CountryUS
Employees1,404
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)<0.01
Shares Outstanding3,725,005,900
10 Day Avg. Volume33,046
30 Day Avg. Volume49,617
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)1.94
Price to Sales (P/S)1.55
P/FCF Ratio14.29
Enterprise Value/Market Cap129.61
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit4.02
Enterprise Value/Ebitda8.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 makes money primarily by selling branded disposable hygiene and care products to retail and wholesale channels (and, depending on market, e-commerce and institutional buyers). Its key revenue streams are (1) Baby Care: sales of disposable...
Unicharm Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
76
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 991.09B | 988.98B | 941.79B | 898.02B | 782.72B |
| Gross Profit | 373.10B | 389.91B | 351.53B | 328.60B | 313.64B |
| EBITDA | 164.29B | 185.00B | 180.56B | 161.16B | 160.80B |
| Net Income | 68.37B | 81.84B | 86.05B | 67.61B | 72.75B |
Balance Sheet | |||||
| Total Assets | 1.22T | 1.24T | 1.13T | 1.05T | 987.65B |
| Cash, Cash Equivalents and Short-Term Investments | 253.26B | 353.94B | 253.77B | 307.60B | 307.30B |
| Total Debt | 11.06B | 26.85B | 28.57B | 27.02B | 38.31B |
| Total Liabilities | 332.14B | 366.26B | 345.38B | 340.61B | 352.22B |
| Stockholders Equity | 795.25B | 773.06B | 695.72B | 618.88B | 557.64B |
Cash Flow | |||||
| Free Cash Flow | 107.83B | 97.77B | 124.00B | 59.27B | 70.58B |
| Operating Cash Flow | 137.84B | 137.10B | 162.41B | 92.22B | 105.25B |
| Investing Cash Flow | -58.65B | -73.84B | -67.53B | -7.14B | -79.84B |
| Financing Cash Flow | -90.84B | -66.79B | -67.01B | -61.65B | -45.18B |
Unicharm Technical Analysis
Neutral
2.82
Price Trends
3.09
Negative
3.00
Positive
3.18
Negative
Market Momentum
-0.02
Negative
56.41
Neutral
93.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNICY, the sentiment is Neutral. The current price of 2.82 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 3.09, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 93.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNICY.
Unicharm Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $328.38B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
73 Outperform | $22.31B | 27.62 | 17.16% | 1.38% | 1.45% | 42.04% | |
70 Outperform | $11.20B | 22.54 | 8.46% | ― | -0.81% | -0.63% | |
69 Neutral | $125.80B | 12.84 | 26.01% | 3.74% | -0.30% | -14.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $68.57B | -429.64 | 431.59% | 2.67% | -0.05% | 2.49% | |
61 Neutral | $32.20B | 16.63 | 155.28% | 5.03% | -10.04% | -23.41% |
* Consumer Defensive Sector Average
UNICY
Unicharm
3.07
-1.18
-27.81%
CHD
Church & Dwight
94.20
-8.24
-8.04%
CL
Colgate-Palmolive
85.55
-4.04
-4.51%
KMB
Kimberly Clark
97.00
-34.63
-26.31%
PG
Procter & Gamble
144.90
-14.29
-8.98%
UL
Unilever
58.25
-3.85
-6.20%
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.