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Unicharm (UNICY)
OTHER OTC:UNICY
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Unicharm
(OTC:UNICY)
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Rating:65Neutral
Price Target:
$3.50
▲(8.70% Upside)
Unicharm's overall stock score reflects strong financial performance and a fair valuation, but is tempered by mixed technical indicators and challenges highlighted in the earnings call. The company's low leverage and improving cash flow are positives, but regional difficulties, particularly in Asia, pose risks to future growth.
Unicharm (UNICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.77B
Dividend YieldN/A
Average Volume (3M)49.62K
Price to Earnings (P/E)20.2
Beta (1Y)0.09
Revenue Growth-1.34%
EPS Growth-7.70%
CountryUS
Employees1,404
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.03
Shares Outstanding3,725,005,900
10 Day Avg. Volume33,046
30 Day Avg. Volume49,617
Financial Highlights & Ratios
PEG Ratio-1.36
Price to Book (P/B)2.91
Price to Sales (P/S)2.28
P/FCF Ratio23.02
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
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 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 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
Neutral
3.22
Price Trends
3.30
Negative
3.47
Negative
3.76
Negative
Market Momentum
-0.01
Negative
51.31
Neutral
90.90
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 3.22 is below the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.30, and below the 200-day MA of 3.76, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.90 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $356.90B | 22.26 | 31.81% | 2.73% | 1.23% | 18.02% | |
73 Outperform | $152.98B | 25.58 | 28.36% | 3.17% | -0.30% | -14.60% | |
68 Neutral | $63.04B | 21.92 | 705.21% | 2.64% | 0.05% | 3.55% | |
67 Neutral | $20.92B | 40.51 | 12.07% | 1.36% | 1.13% | -34.78% | |
65 Neutral | $11.77B | 20.19 | 11.28% | ― | -1.34% | -7.70% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $39.46B | 16.39 | 196.26% | 4.20% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
UNICY
Unicharm
3.22
-2.11
-39.59%
CHD
Church & Dwight
85.89
-13.98
-14.00%
CL
Colgate-Palmolive
78.00
-15.48
-16.56%
KMB
Kimberly Clark
118.93
-11.77
-9.01%
PG
Procter & Gamble
152.49
-12.45
-7.55%
UL
Unilever
62.67
2.16
3.57%
Unicharm Corporate Events
Unicharm Corporation Reports Mixed Financial Results for H1 2025
Aug 6, 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.
Glossary
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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.