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Unicharm
(8113)
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Rating:77Outperform
Price Target:
¥1,161.00
▲(21.29% Upside)
Action:Upgraded
Date:08/09/26
The score is primarily supported by strong underlying financial durability (very low leverage and reliable free cash flow) and a constructive technical trend with positive momentum. Offsetting these positives, valuation is less attractive due to a higher P/E and only a modest dividend yield, while recent profitability and growth have softened versus prior peak years.
Positive Factors
Conservative balance sheet
Extremely low leverage (debt ~1% of equity) gives Unicharm durable financial flexibility and downside protection versus peers. This conservative structure supports capital allocation for R&D, capacity additions, or buybacks during cycles, reducing refinancing and solvency risk.
Negative Factors
Uneven and negative revenue trend
Recent negative revenue growth signals softening top-line momentum that may persist absent clear market share gains or geographic expansion. For a volume-driven consumables firm, sustained revenue weakness compresses scale advantages, reduces bargaining power with retailers, and limits reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage (debt ~1% of equity) gives Unicharm durable financial flexibility and downside protection versus peers. This conservative structure supports capital allocation for R&D, capacity additions, or buybacks during cycles, reducing refinancing and solvency risk.
Read all positive factors
Unicharm (8113) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.84T
Dividend Yield1.99%
Average Volume (3M)5.23M
Price to Earnings (P/E)29.2
Beta (1Y)0.33
Revenue Growth-2.89%
EPS Growth-31.75%
CountryJP
Employees16,542
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)37.22
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
¥1,080.00Price Target Upside12.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)46.31
Revenue Forecast (FY)¥1.00T
Unicharm Business Overview & Revenue Model
Company Description
Unicharm Corporation engages in the manufacturing and sale of pet care and related products in Japan and internationally. The company operates through Personal Care, Pet Care, and Others segments. It offers wellness care, feminine care, baby and c...
How the Company Makes Money
Unicharm makes money primarily by manufacturing and selling branded fast-moving consumer goods (FMCG) in hygiene and personal care, supplemented by pet care products. Revenue is generated mainly through product sales to retailers, wholesalers, and...
Unicharm Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 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
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 968.23B | 945.27B | 988.98B | 941.79B | 898.02B | 782.72B |
| Gross Profit | 373.78B | 355.85B | 376.38B | 340.39B | 318.24B | 303.11B |
| EBITDA | 158.94B | 157.12B | 184.32B | 179.07B | 160.00B | 161.41B |
| Net Income | 64.43B | 65.21B | 81.84B | 86.05B | 67.61B | 72.75B |
Balance Sheet | ||||||
| Total Assets | 1.23T | 1.22T | 1.24T | 1.13T | 1.05T | 987.65B |
| Cash, Cash Equivalents and Short-Term Investments | 254.47B | 253.09B | 353.94B | 334.38B | 292.95B | 293.05B |
| Total Debt | 13.32B | 11.05B | 61.83B | 61.34B | 57.12B | 75.46B |
| Total Liabilities | 324.47B | 331.92B | 366.26B | 345.38B | 340.61B | 352.22B |
| Stockholders Equity | 811.59B | 794.71B | 773.06B | 695.72B | 618.88B | 557.64B |
Cash Flow | ||||||
| Free Cash Flow | 108.71B | 102.84B | 97.77B | 124.00B | 59.27B | 70.58B |
| Operating Cash Flow | 133.75B | 131.47B | 137.10B | 162.41B | 92.22B | 105.25B |
| Investing Cash Flow | -74.49B | -55.94B | -73.84B | -67.45B | -4.28B | -79.84B |
| Financing Cash Flow | -85.88B | -86.64B | -66.79B | -67.09B | -64.52B | -45.18B |
Unicharm Technical Analysis
Positive
957.20
Price Trends
949.52
Positive
940.59
Positive
936.61
Positive
Market Momentum
16.07
Negative
60.32
Neutral
49.47
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 957.2 is below the 20-day moving average (MA) of 984.01, above the 50-day MA of 949.52, and above the 200-day MA of 936.61, indicating a bullish trend. The MACD of 16.07 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 49.47 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 | ¥241.72B | 28.28 | ― | 4.66% | 5.68% | -2.85% | |
77 Outperform | ¥1.84T | 29.16 | 7.73% | 2.09% | -2.89% | -31.75% | |
74 Outperform | ¥2.96T | 23.46 | 12.16% | 2.36% | 3.60% | 13.80% | |
72 Outperform | ¥554.51B | 15.76 | 12.11% | 1.82% | 11.37% | 11.35% | |
64 Neutral | ¥463.55B | 17.02 | 8.90% | 1.74% | 3.10% | 27.99% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | ¥1.26T | -35.01 | ― | 1.64% | 0.45% | -836.50% |
* Consumer Defensive Sector Average
JP:8113
Unicharm
1,023.00
35.17
3.56%
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443.77
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Unicharm Corporate Events
Unicharm Releases Q2 FY2026 Investor Presentation Materials
Aug 5, 2026
Unicharm has released presentation materials for its investor meeting covering the second quarter of the fiscal year ending December 31, 2026, spanning results from January 1 to June 30. The documents are positioned as a financial performance summ...
Unicharm Delivers Higher Sales and Strong Core Earnings, Lifts Dividend and Full-Year Guidance
Aug 5, 2026
Unicharm reported consolidated net sales of ¥487.1 billion for the six months ended June 30, 2026, a 4.9% year-on-year increase, with core operating income rising 14.1% to ¥65.0 billion. Profit attributable to owners of the parent slippe...
Unicharm Discloses Parent Unitec’s FY2026 Results and Ownership Structure
Jun 15, 2026
Unicharm has announced that its parent entity, Unitec Corporation, has finalized financial statements for the fiscal year ended March 20, 2026, fulfilling disclosure obligations for a parent company that holds a significant voting stake. Unitec is...
Unicharm Moves to Enter Brazil’s Pet Food Market With Nutrire Acquisition
May 15, 2026
Unicharm’s consolidated subsidiary, UNICHARM PET DO BRASIL LTDA, has agreed to acquire all shares of Brazilian pet food maker Nutrire Indústria de Alimentos, which produces and sells premium pet food domestically and exports mainly to C...
Unicharm Boosts Capital in Brazilian Pet Unit for Full-Scale Market Entry
May 15, 2026
Unicharm Corporation will significantly increase the capital of its Brazilian pet subsidiary, UNICHARM PET DO BRASIL LTDA, as it makes a full-scale entry into Brazil’s pet market, which the company positions as a key growth area. The capital...
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.