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 Money

Unicharm Financial Statement Overview

Summary

Unicharm's financial statements reflect strong revenue growth and effective cost management, with robust profitability margins. The balance sheet indicates low leverage and strong equity, supporting financial stability. Cash flow generation is solid, although there are some concerns over minor fluctuations in net income and cash management.

Income Statement

Very Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
980.22B	988.98B	941.79B	898.02B	782.72B	727.48B
	Gross Profit
382.70B	389.91B	351.53B	328.60B	313.64B	292.61B
	EBIT
137.10B	151.99B	127.97B	119.85B	123.48B	99.74B
	EBITDA
185.41B	185.00B	180.56B	161.16B	160.80B	147.56B
	Net Income Common Stockholders
88.92B	81.84B	86.05B	67.61B	72.75B	52.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
287.79B	261.05B	253.77B	307.60B	307.30B	297.11B
	Total Assets
1.19T	1.24T	1.13T	1.05T	987.65B	893.41B
	Total Debt
24.92B	26.85B	28.57B	27.02B	38.31B	33.18B
	Net Debt
-262.87B	-234.20B	-225.21B	-190.13B	-149.23B	-166.34B
	Total Liabilities
336.84B	366.26B	345.38B	340.61B	352.22B	330.76B
	Stockholders Equity
756.95B	773.06B	695.72B	618.88B	557.64B	493.00B
Cash Flow		Free Cash Flow
88.28B	97.77B	124.00B	59.27B	70.58B	114.75B
	Operating Cash Flow
123.30B	137.10B	162.41B	92.22B	105.25B	150.25B
	Investing Cash Flow
38.25B	-73.84B	-67.53B	-7.14B	-79.84B	-41.70B
	Financing Cash Flow
-75.29B	-66.79B	-67.01B	-61.65B	-45.18B	-35.24B

Unicharm Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNCHF		$14.39B	23.81	11.87%	1.21%	―	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
KAOCF		$21.42B	28.65	11.12%	2.13%	―	―
KBYPF		$2.79B	39.58	5.17%	1.76%	―	―
LIOPF		$2.90B	19.80	7.58%	1.73%	―	―
RPHCF		$3.18B	15.43	12.05%	1.73%	―	―
7956	75 Outperform	¥216.36B	24.59		4.20%	11.68%	27.65%

* Consumer Defensive Sector Average

Performance Comparison

UNCHF

Unicharm

7.89

-2.88

-26.74%

KAOCF

Kao

46.18

4.24

10.11%

KBYPF

Kobayashi Pharmaceutical Co

37.69

2.50

7.10%

LIOPF

Lion

10.15

2.17

27.19%

RPHCF

Rohto Pharmaceutical Co

13.78

-4.87

-26.11%

JP:7956

Pigeon Corporation

1,808.50

369.66

25.69%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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