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Unicharm Corporation

UNICY
49
Household & Personal Products · Consumer Defensive
Price
$2.92
+0.02 (+0.69%)
Market Cap
$10.05B
Exchange
Other OTC
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

2.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 3.59B (2021) → 3.50B (2025)

Unicharm is a Japanese company that makes everyday personal care products like diapers, feminine hygiene products, and adult incontinence products. It also sells pet care items, including pet food and pet sheets. The company sells to everyday consumers, primarily through retail stores and pharmacies, and is one of the largest personal care product makers in Asia.

Unicharm makes money by selling its branded consumer goods, with revenue coming from product sales across Japan and a large number of international markets, particularly in Southeast Asia, China, and India. Its competitive strength comes from strong brand recognition and deep distribution networks in fast-growing Asian markets where rising incomes are driving demand for packaged consumer goods. The key growth driver is continued expansion in emerging Asian markets, where birth rates and a growing middle class support demand for baby and personal care products, though currency fluctuations and raw material cost increases remain ongoing risks to profitability.

Winston Score History

Score breakdown

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Quality

Gross Margin
38.3%
Modest — 38.3% gross margin
Operating Margin
13.4%
Healthy — 13.4% operating margin
ROCE
4.0%
Weak — 4.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-2.0%
Shrinking sales (-2.0% YoY)
EPS YoY
-31.2%
Earnings shrinking (-31.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
223%
Turns 223% of profit into real cash
FCF Margin
11.2%
Modest free cash flow (11.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.01
Conservative — low debt load (0.01)
Interest Cover
26.12x
Comfortably covers interest (26.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.2x
Attractive valuation — P/E 0.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
2.05%
Moderate income — 2.05% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
-9.3%
Dividend cut (-9.3% YoY) — warning sign

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