Unicharm (8113) AI Stock Analysis

• Market Cap: $2.12T
• Dividend Yield: 1.2%
• Average Volume (3M): 5.55M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.42
• Revenue Growth: 2.40%
• EPS Growth: 2.53%
• Country: JP
• Employees: 1,404
• Sector: Consumer Defensive
• Sector Strength: 71
• Industry: Household & Personal Products
• EPS (TTM): 14.18
• Shares Outstanding: 1,862,502,900
• 10 Day Avg. Volume: 5,203,470
• 30 Day Avg. Volume: 5,554,460
• PEG Ratio: -1.13
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,271.59
• Price Target Upside: 9.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Unicharm's overall stock score is driven primarily by strong financial performance, with significant revenue growth and effective cost management. The technical analysis suggests some bearish trends, although the MACD indicates potential for short-term momentum. Valuation is reasonable, with a moderate P/E ratio and dividend yield. The absence of new earnings call data or corporate events focuses the analysis on these core components.

Unicharm Business Overview & Revenue Model

Company Description

Unicharm Corporation is a leading Japanese company specializing in the manufacture and distribution of personal care and hygiene products. Founded in 1961, the company operates in sectors such as baby care, feminine care, health care, and pet care. Its core products include diapers, sanitary napkins, adult incontinence products, and pet care goods, which are marketed under various brand names like MamyPoko, Sofy, and Lifree. Unicharm has a strong presence not only in Japan but also in international markets across Asia, the Middle East, and Europe.

How the Company Makes Money

Unicharm makes money primarily through the sale of its personal care and hygiene products. The company's revenue streams are diversified across its main sectors: baby care (e.g., diapers and baby wipes), feminine care (e.g., sanitary napkins and panty liners), and healthcare (e.g., adult incontinence products). Additionally, the pet care segment contributes to its earnings through products such as pet diapers and hygiene products for animals. Unicharm's business model relies heavily on brand recognition and market penetration in various regions. Strategic partnerships and collaborations with retailers and distributors help expand its reach and market share, while ongoing investment in research and development ensures a continuous pipeline of innovative products that meet consumer needs.

Unicharm Financial Statement Overview

Summary

Unicharm's financial performance is strong, with consistent revenue growth and effective cost management. The balance sheet is robust with low leverage and a stable equity base. Cash flow generation is healthy, although some fluctuations in net income and cash management need attention. Overall, Unicharm is financially stable with growth potential.

Income Statement

Unicharm has demonstrated consistent revenue growth, with a 5% increase from 2023 to 2024. Gross profit margin and net profit margin have remained strong, indicating effective cost management. EBIT and EBITDA margins are also robust, suggesting solid operating performance. However, a slight decrease in net income from 2023 to 2024 highlights some pressure on profitability.

Balance Sheet

The company maintains a strong equity base, with a stable equity ratio of approximately 62% in 2024. The debt-to-equity ratio is low, indicating conservative leverage. Return on Equity shows a positive trend, enhancing shareholder value. However, minimal fluctuations in stockholders' equity suggest limited expansion in the equity base.

Cash Flow

Unicharm exhibits healthy cash flow generation, with a substantial free cash flow of JPY 97,773 million in 2024. The operating cash flow to net income ratio is strong, reflecting efficient cash generation from operations. However, a decline in free cash flow from 2023 highlights potential challenges in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
988.98B	941.79B	898.02B	782.72B	727.48B
	Gross Profit
389.91B	351.53B	328.60B	313.64B	292.61B
	EBIT
151.99B	127.97B	119.85B	123.48B	99.74B
	EBITDA
185.00B	180.56B	161.16B	160.80B	147.56B
	Net Income Common Stockholders
81.84B	86.05B	67.61B	72.75B	52.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
368.75B	253.77B	307.60B	307.30B	297.11B
	Total Assets
1.24T	1.13T	1.05T	987.65B	893.41B
	Total Debt
26.85B	28.57B	27.02B	38.31B	33.18B
	Net Debt
-234.20B	-225.21B	-190.13B	-149.23B	-166.34B
	Total Liabilities
366.26B	345.38B	340.61B	352.22B	330.76B
	Stockholders Equity
773.06B	695.72B	618.88B	557.64B	493.00B
Cash Flow		Free Cash Flow
97.77B	124.00B	59.27B	70.58B	114.75B
	Operating Cash Flow
137.10B	162.41B	92.22B	105.25B	150.25B
	Investing Cash Flow
-73.84B	-67.53B	-7.14B	-79.84B	-41.70B
	Financing Cash Flow
-66.79B	-67.01B	-61.65B	-45.18B	-35.24B

Unicharm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1157.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8113, the sentiment is Negative. The current price of 1157 is below the 20-day moving average (MA) of 1275.35, below the 50-day MA of 1228.84, and below the 200-day MA of 1397.21, indicating a bearish trend. The MACD of -20.68 indicates Positive momentum. The RSI at 32.67 is Neutral, neither overbought nor oversold. The STOCH value of 6.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8113.

Unicharm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4917	76 Outperform	$59.56B	32.09	2.70%	2.92%	5.21%	33.10%
4912	74 Outperform	$432.48B	20.32	7.58%	1.73%	2.30%	33.87%
4452	74 Outperform	$2.94T	25.75	11.12%	2.27%	6.57%	105.73%
8113	73 Outperform	$2.12T	22.90	11.87%	1.20%	2.40%	2.53%
Sector *	64 Neutral	$8.77B	14.68	4.78%	173.90%	3.25%	2.18%
4911	55 Neutral	¥943.59B	496.62		1.69%	-1.33%	-139.30%

Unicharm Corporate Events

Unicharm Supports Education with Treasury Stock Disposal

Unicharm Corporation has resolved to dispose of 650,000 shares of its treasury stock through a third-party allotment to support SHINAGAWA JOSHI GAKUIN. This move, approved by the board and shareholders, aligns with the company’s efforts to contribute to the SDGs by supporting educational activities.

Unicharm Reports Mixed Financial Results for Q1 2025 Amid Stock Split

Unicharm Corporation reported a decrease in net sales and core operating income for the first quarter of 2025 compared to the previous year, with net sales down by 3.7% and core operating income down by 22.7%. Despite these declines, the company saw an increase in profit attributable to owners of the parent by 39.7%, indicating a potential shift in operational efficiency or cost management strategies. The company also executed a 3-for-1 stock split, impacting their earnings per share calculations, and adjusted their dividend forecasts accordingly.

Unicharm Advances Treasury Share Acquisition Plan

Unicharm Corporation has announced the progress of its treasury share acquisition, purchasing 3,528,000 shares for approximately 4.39 billion JPY between April 1 and April 30, 2025. This acquisition is part of a larger plan approved by the Board of Directors to buy back up to 25 million shares by December 2025, aiming to enhance shareholder value and optimize capital structure.

Unicharm Completes Treasury Shares Disposal for Remuneration

Unicharm Corporation announced the completion of the payment process for the disposal of 248,400 treasury shares as restricted share-based remuneration. This move, resolved at the Board of Directors meeting on March 19, 2025, involves allocating shares to directors, executive officers, and senior associate officers, potentially impacting the company’s internal stakeholder alignment and compensation strategy.

Unicharm Advances Treasury Share Acquisition Strategy

Unicharm Corporation announced the progress of its treasury share acquisition, having acquired 4,124,700 shares at a total price of 4,824,209,926 JPY between March 1 and March 31, 2025. This move is part of a broader resolution approved by the Board of Directors to acquire up to 25,000,000 shares by December 18, 2025, aiming to strengthen the company’s capital efficiency and shareholder value.

Unicharm Maintains Independence Despite Significant Shareholding by Unitec

Unicharm Corporation announced that Unitec Corporation, an associated company, holds 26.44% of its voting rights. Despite this significant shareholding, Unitec has not influenced Unicharm’s business activities or management decisions, maintaining the latter’s independence. There are no material transactions to report with the controlling shareholder.

Unicharm Announces Treasury Shares Disposal for Executive Incentives

Unicharm Corporation announced the disposal of 248,400 treasury shares as part of a restricted share-based remuneration plan aimed at incentivizing its directors and executive officers. This move is intended to align the interests of its management with shareholders by providing medium- to long-term incentives, with a three-year transfer restriction period and a clawback provision in case of major financial discrepancies.

Unicharm Advances Treasury Share Acquisition Plan

Unicharm Corporation announced the progress of its treasury share acquisition, acquiring 2,436,400 shares at a total price of 2,783,200,660 JPY between February 14 and February 28, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 25 million shares, aiming to enhance shareholder value and optimize capital structure.