WinstonWınston
Back
Stock

Kao Corporation

KAOOY
62
Household & Personal Products · Consumer Defensive
Price
$7.42
-0.13 (-1.72%)
Market Cap
$17.23B
Exchange
Other OTC
Winston Score
62
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 7, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
Growth
Strong
Cash Flow
Strong
Stability
Exceptional
Valuation
Mixed
Dividends
Mixed
Track this stock — start free trial

Share count falling — buybacks

−3.0% over 4y

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

Diluted shares outstanding: 2.38B (2021) → 2.31B (2025)

§Winston Score History

The full picture

Kao Corporation is a Japanese company that makes everyday household and personal care products. Its brands cover skin care, hair care, laundry detergents, diapers, and sanitary products, with well-known names like Bioré, Jergens, Merries, and Attack. It also has a chemicals division that supplies ingredients to industrial customers.

Kao earns revenue by selling consumer goods through retailers and e-commerce, plus specialty chemicals to businesses. The company operates mainly in Japan and across Asia, with a smaller presence in Europe and the Americas, and has a market cap around $17 billion. Strong R&D capabilities and trusted local brands give it a durable position in Asian markets. A key challenge is reigniting growth outside Japan while managing rising raw material costs and intense competition from global giants like Procter & Gamble and Unilever.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+12.1% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

¥64.1B/ year

↑ Rising (+15537% vs prior year)

3.6% of revenue

1.8x the sector average (2%)

R&D investment increasing — building for the future

Insider Activity

83.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥370.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Kao Corporation is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
39.5%
Modest — 39.5% gross margin
Profit after running costs
Operating Margin
11.1%
Modest — 11.1% operating margin
Return on the money invested
ROCE
14.8%
Good — 14.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth
Sales YoY
+12.0%
Steady sales growth (+12.0% YoY)
Profit growth
EPS YoY
+22.0%
Earnings growing fast (+22.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash
Cash Conversion
153%
Turns 153% of profit into real cash
Spare cash per sale
FCF Margin
8.5%
Modest free cash flow (8.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns
Debt / Equity
0.14
Conservative — low debt load (0.14)
Covers its interest
Interest Cover
37.49x
Comfortably covers interest (37.5x)

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

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit
P/E Ratio (TTM)
23.2x
Growth-priced — P/E 23.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend
Dividend Yield
2.21%
Moderate income — 2.21% yield

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

Dividend record
Dividend Growth
-10.9%
Dividend cut (-10.9% YoY) — warning sign

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial