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Unicharm Corporation

UNICY
56
Household & Personal Products · Consumer Defensive
Price
$3.12
+0.02 (+0.65%)
Market Cap
$10.74B
Exchange
Other OTC
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Strong
Stability
Exceptional
Valuation
Good
Dividends
Mixed

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+6.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+29.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥14.3B/ year

Rising (+38% vs prior year)

1.4% of revenue

Below sector average (2%)

R&D investment increasing — building for the future

Insider Activity

44.6%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

¥441.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth context

Unicharm Corporation is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

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Quality

Profit per sale
Gross Margin
40.8%
Healthy — 40.8% gross margin
Profit after running costs
Operating Margin
13.4%
Healthy — 13.4% operating margin
Return on the money invested
ROCE
14.4%
Good — 14.4% return on capital

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

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Growth

Sales growth
Sales YoY
+1.2%
Nearly flat sales (+1.2% YoY)
Profit growth
EPS YoY
-21.3%
Earnings shrinking (-21.3% YoY)

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

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
209%
Turns 209% of profit into real cash
Spare cash per sale
FCF Margin
11.3%
Modest free cash flow (11.3%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.02
Conservative — low debt load (0.02)
Covers its interest
Interest Cover
26.97x
Comfortably covers interest (27.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
27.0x
Growth-priced — P/E 27.0

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

Cheaper or dearer next year
P/E vs Forward
+5.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.0 → 21.7)

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Dividends

Dividend
Dividend Yield
2.22%
Moderate income — 2.22% yield

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

Dividend record
Dividend Growth
-2.3%
Dividend cut (-2.3% YoY) — warning sign

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