DB:UN4

Stock Analysis Report

Executive Summary

Unicharm Corporation manufactures and sells baby and child care, feminine care, healthcare, cosmetic, household, and pet care products in Japan and internationally.

Rewards

Earnings are forecast to grow 9.12% per year

Earnings grew by 6.3% over the past year

Risk Analysis

No risks detected for UN4 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Unicharm's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UN4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

UN4

-1.4%

DE Household Products

0.5%

DE Market


1 Year Return

14.6%

UN4

10.9%

DE Household Products

15.5%

DE Market

Return vs Industry: UN4 exceeded the German Household Products industry which returned 3.7% over the past year.

Return vs Market: UN4 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

UN4IndustryMarket
7 Day-3.9%-1.4%0.5%
30 Day-4.5%-0.4%1.4%
90 Day2.1%3.0%5.3%
1 Year15.5%14.6%13.7%10.9%19.2%15.5%
3 Year49.7%46.4%-9.1%-14.8%15.7%5.5%
5 Year28.2%23.8%10.7%0.1%27.3%10.1%

Price Volatility Vs. Market

How volatile is Unicharm's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Unicharm undervalued compared to its fair value and its price relative to the market?

36.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UN4 (€31) is trading above our estimate of fair value (€29.33)

Significantly Below Fair Value: UN4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UN4 is poor value based on its PE Ratio (38.2x) compared to the Household Products industry average (19.1x).

PE vs Market: UN4 is poor value based on its PE Ratio (38.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: UN4 is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: UN4 is overvalued based on its PB Ratio (5x) compared to the XE Household Products industry average (2x).


Next Steps

Future Growth

How is Unicharm forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UN4's forecast earnings growth (9.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: UN4's earnings (9.1% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: UN4's earnings are forecast to grow, but not significantly.

Revenue vs Market: UN4's revenue (7.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: UN4's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UN4's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Unicharm performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UN4 has high quality earnings.

Growing Profit Margin: UN4's current net profit margins (8.4%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: UN4's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: UN4's earnings growth over the past year (6.3%) is below its 5-year average (8.1% per year).

Earnings vs Industry: UN4 earnings growth over the past year (6.3%) exceeded the Household Products industry -34.3%.


Return on Equity

High ROE: UN4's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Unicharm's financial position?


Financial Position Analysis

Short Term Liabilities: UN4's short term assets (¥367.4B) exceed its short term liabilities (¥210.6B).

Long Term Liabilities: UN4's short term assets (¥367.4B) exceed its long term liabilities (¥81.1B).


Debt to Equity History and Analysis

Debt Level: UN4's debt to equity ratio (5.3%) is considered satisfactory.

Reducing Debt: UN4's debt to equity ratio has reduced from 6% to 5.3% over the past 5 years.

Debt Coverage: UN4's debt is well covered by operating cash flow (321.8%).

Interest Coverage: UN4 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: UN4 has a high level of physical assets or inventory.

Debt Coverage by Assets: UN4's debt is covered by short term assets (assets are 13.3x debt).


Next Steps

Dividend

What is Unicharm's current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.5%industryaverage2.4%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: UN4's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: UN4's dividend (0.73%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: UN4's dividends per share have been stable in the past 10 years.

Growing Dividend: UN4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), UN4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Unicharm's salary, the management and board of directors tenure and is there insider trading?

15.6yrs

Average management tenure


CEO

Takahisa Takahara (58yo)

15.6yrs

Tenure

JP¥195,000,000

Compensation

Mr. Takahisa Takahara has been the Chief Executive Officer of Unicharm Corporation since June 2004 and has been its President since June 2001. Mr. Takahara served as an Executive Officer at Unicharm Corpor ...


CEO Compensation Analysis

Compensation vs Market: Takahisa's total compensation ($USD1.77M) is below average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Takahisa's compensation has been consistent with company performance over the past year.


Management Age and Tenure

15.6yrs

Average Tenure

63.5yo

Average Age

Experienced Management: UN4's management team is seasoned and experienced (15.6 years average tenure).


Board Age and Tenure

12.1yrs

Average Tenure

63yo

Average Age

Experienced Board: UN4's board of directors are seasoned and experienced ( 12.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Shinji Mori (63yo)

    VP, Managing Executive Officer

    • Tenure: 14.6yrs
  • Eiji Ishikawa (64yo)

    VP, Chief Quality Officer

    • Tenure: 14.6yrs
  • Takahisa Takahara (58yo)

    President

    • Tenure: 15.6yrs
    • Compensation: JP¥195.00m
  • Yukihiro Kimura (72yo)

    Senior Executive Officer

    • Kenji Takaku

      Senior Executive Officer

      • Atsushi Iwata

        GM of Accounting & Finance Division and Senior Executive Officer

        • Seiichi Motoi

          Senior Executive Officer

          • Toshifumi Hikosaka

            Senior Executive Officer

            • Tetsuya Shite

              Senior Executive Officer

              • Masayuki Daiyo

                Senior Executive Officer


                Board Members

                • Shinji Mori (63yo)

                  VP, Managing Executive Officer

                  • Tenure: 14.6yrs
                • Eiji Ishikawa (64yo)

                  VP, Chief Quality Officer

                  • Tenure: 14.6yrs
                • Takahisa Takahara (58yo)

                  President

                  • Tenure: 15.6yrs
                  • Compensation: JP¥195.00m
                • Takashi Mitachi (62yo)

                  Outside Director

                  • Tenure: 2.8yrs
                • Gumpei Futagami (74yo)

                  Director

                  • Tenure: 9.6yrs
                • Hiroko Wada

                  Outside Director

                  • Tenure: 0.8yrs

                Company Information

                Unicharm Corporation's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Unicharm Corporation
                • Ticker: UN4
                • Exchange: DB
                • Founded: 1961
                • Industry: Household Products
                • Sector: Household
                • Market Cap: JP¥2.173t
                • Listing Market Cap: JP¥17.835b
                • Shares outstanding: 593.96m
                • Website: https://www.unicharm.co.jp

                Number of Employees


                Location

                • Unicharm Corporation
                • Sumitomo Fudosan Mita Twin Building
                • West Wing
                • Tokyo
                • 108-8575
                • Japan

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                UNCH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
                8113TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
                UN4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
                UNIC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 2012

                Biography

                Unicharm Corporation manufactures and sells baby and child care, feminine care, healthcare, cosmetic, household, and pet care products in Japan and internationally. Its baby and child care products, including disposable diapers, swimming and training pants, night time pants, wet tissues, and wipes under the Moony and MamyPoko brands; and feminine care products comprise feminine napkins, tampons, sanitary shorts, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brands. The company’s health 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 brand. It also provides home care products, including cleaning sheets under the Wave brand; personal care products, such as cosmetic puffs and wet tissues under the Silcot brand; and kitchen care products comprising 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 Aiken Genki, Neko Genki, Gaines, Gin no Spoon, and Gin no Sara brands. Further, it manufactures and sells industrial materials, food-packaging materials, etc.; urinary products, such as gentle skin type and pantiliner type products, pants, napkins, men's incontinence pads, and slight leakage pads; nursing care products, such as tape type incontinence pad, pants type, and adult care products; and masks. The company was founded in 1961 and is headquartered in Tokyo, Japan. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/22 21:06
                End of Day Share Price2020/01/22 00:00
                Earnings2019/09/30
                Annual Earnings2018/12/31


                Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.