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Unicharm Corp 8113

Morningstar Rating
JPY 5,181.00 +70.00 (1.37%)
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Company Report

Easing Cost Pressure Will Bolster Unicharm’s Near-Term Profits but Volume Contraction a Concern

Unicharm is the third-largest global personal hygiene manufacturer with a focus in Asia comprising 47% (ex-Japan) of the group's sales. Its disposable hygiene products are built on the application of nonwoven fabrics and super-absorbent polymer and designed to support various life stages. Tapping into populated Asian markets as an early entrant and establishing a meaningful presence through constant product and marketing innovations has been its winning formula over the past two decades. Increased disposable income and improved standards of living have fueled demand for disposable hygiene products in its core markets. Moreover, premiumization, specifically prevailing in the region’s feminine care, has been a recent growth driver. Likewise, adult incontinence, emerging as a meaningful growth contributor, has the potential to outgrow baby diapers as the region’s population ages.

Price vs Fair Value

8113 is trading at a 523% premium.
Price
JPY 5,111.00
Fair Value
JPY 1,992.00
Uncertainty
Medium
1-Star Price
JPY 2,422.00
5-Star Price
JPY 6,667.00
Economic Moat
Ncfcc
Capital Allocation
Bvfmfpzd

Bulls Say, Bears Say

Bulls

With leading market share and brand equity in Asia (46% of sales), Unicharm will benefit from growing demand for disposable personal hygiene products and premiumization.

Bears

Premiumization of sanitary napkins in China and Japan, a key profit growth driver over the past few years, seems to be approaching a plateau as growth started decelerating.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
JPY 5,111.00
Day Range
JPY 5,083.005,194.00
52-Week Range
JPY 4,357.005,958.00
Bid/Ask
JPY 5,180.00 / JPY 5,182.00
Market Cap
JPY 3.04 Tril
Volume/Avg
547,500 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
33.58
Price/Sales
3.16
Dividend Yield (Trailing)
0.82%
Dividend Yield (Forward)
0.86%
Total Yield
1.39%

Company Profile

Focusing on personal hygiene products utilizing non-woven fabric, Unicharm is the largest manufacturer of disposable baby diapers, feminine sanitary, and adult incontinence products in Japan and Asia. Its personal-care business accounted for 86% of its sales as of 2021, with the balance from mainly the pet care. Unicharm generates 62% sales from overseas, of which nearly three quarters of sales are from Asia, mostly China, Indonesia and Thailand. India, followed by Vietnam, is the fastest rising market. Outside Asia, it also operates in Saudi Arabia, Americas and Europe. Drugstores, supermarkets, baby product specialty stores as well as e-commerce are the key sales channels.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Large Growth
Total Number of Employees
17,947

Competitors

Valuation

Metric
8113
ESSITY B
KMB
Price/Earnings (Normalized)
33.5815.6220.00
Price/Book Value
4.182.3644.51
Price/Sales
3.161.382.29
Price/Cash Flow
20.2311.0215.24
Price/Earnings
8113
ESSITY B
KMB

Financial Strength

Metric
8113
ESSITY B
KMB
Quick Ratio
1.980.850.47
Current Ratio
2.471.210.81
Interest Coverage
16.106.948.07
Quick Ratio
8113
ESSITY B
KMB

Profitability

Metric
8113
ESSITY B
KMB
Return on Assets (Normalized)
9.22%5.69%13.44%
Return on Equity (Normalized)
15.16%16.41%303.53%
Return on Invested Capital (Normalized)
12.92%9.11%27.67%
Return on Assets
8113
ESSITY B
KMB
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