2026.02.10
Unicharm Selected as a Constituent of the "Nikkei Moat Stock Index"
- Recognized for Mid- to Long-Term Profitability and Competitive Advantage -
Unicharm Corporation (President & CEO: Mr. Takahisa Takahara) is pleased to announce its selection as a constituent of the "Nikkei Moat Stock Index," a new stock index established by Nikkei Inc.
About the "Nikkei Moat Stock Index"
The term "Moat" refers to an "economic moat," a concept pioneered by the renowned investor Warren Buffett. Companies with a “moat” possess a sustainable competitive advantage – driven by superior technology, brand strength, or cost competitiveness – that enables them to generate high returns over the term.
This index typically selects 30 companies from the Tokyo Stock Exchange Prime Market (excluding financials) based on the following strict criteria.
Selection Criteria
・ Market capitalization: 100 billion yen or more.
・ Industry Standing: Revenue within the top 20% of the respective industry.
・ Valuation: A PEG ratio*1 between 0 and 2 (applicable to new constituents only).
*1 PEG ratio = Estimated PER (Price-to-Earnings Ratio) / EPS (Earnings Per Share) growth rate (%). A ratio exceeding 2 is considered overvalued; thus, "between 0 and 2" indicating the stock is undervalued relative to its growth potential.
Constituent Selection Mechanism
From the pool of companies meeting the above criteria, Nikkei selects 30 stocks with exceptionally high profitability, specifically those with an operating cash flow margin*2 exceeding the industry average.
*2 Operating cash flow margin = Operating cash flow / Revenue. This reflects the company’s ability to generate cash through its core business.
This selection reflects the recognition of our sustainable competitive advantage, based on objective financial data, stemming from our unique product development capabilities cultivated over many years and robust brand power in the global market, as our company approaches its 65th anniversary on February 10, 2026. Under our corporate brand essence, "Love Your Possibilities," we will continue to strive for further enhancement of our corporate value and the resolution of social issues through unique technological innovations and sustainable business activities.
Related websites
・ "Nikkei Moat Index" Calculation Methodology (in Japanese)
https://indexes.nikkei.co.jp/nkave/archives/news/20260205J_2.pdf
・ Unicharm Group Integrated Report 2025
<<For Inquiries>>
Unicharm Corporation, Global Marketing Communication Division, Love Your Possibilities PR Department
Email: brand-pr@unicharm.com