Unicharm has been selected for inclusion in the newly established Nikkei Moat Stock Index, recognising the company’s sustained profitability and competitive strength in the Japan FMCG sector.
The index, created by Nikkei Inc., includes 30 non-financial companies listed on the Tokyo Stock Exchange Prime Market.
The term “moat” refers to a company’s ability to protect long-term profits through brand power, technology, scale and cost efficiency. The concept is widely associated with investor Warren Buffett.
To qualify, companies must meet strict financial standards.
They must have a market capitalisation above ¥100 billion and sales ranked within the top 20% of their industry. Their PEG ratio — which compares valuation to earnings growth — must be below 2x and above zero.
From that group, Nikkei selects companies with operating cash flow margins above the industry average. This measures how effectively a company converts sales into cash from its core business.
Unicharm said the inclusion reflects its long-standing product innovation and strong global brand portfolio. The company operates across baby care, feminine care and hygiene categories and maintains a significant presence in Asia.
The recognition comes as Unicharm approaches its 65th anniversary on 10 February 2026.
Inclusion in the Nikkei Moat Stock Index signals investor confidence in the company’s long-term earnings resilience and capital efficiency — reinforcing its position as a leading Japan FMCG brand with durable competitive advantages.
Editor’s Note: Unicharm is a Japan-based FMCG company focused on hygiene and personal care products. The Nikkei Moat Stock Index tracks companies demonstrating sustainable profitability and competitive strength based on objective financial metrics.
