KIMBERLY-CLARK CORP (KMB) Stock Fundamental Analysis
NYSE:KMB - New York Stock Exchange, Inc. - US4943681035 - Common Stock - Currency: USD
Taking everything into account, KMB scores 5 out of 10 in our fundamental rating. KMB was compared to 12 industry peers in the Household Products industry. KMB scores excellent on profitability, but there are some minor concerns on its financial health. KMB has a correct valuation and a medium growth rate. Finally KMB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMB had positive earnings in the past year.
KMB had a positive operating cash flow in the past year.
KMB had positive earnings in each of the past 5 years.
Each year in the past 5 years KMB had a positive operating cash flow.
1.2 Ratios
KMB has a Return On Assets of 15.38%. This is amongst the best in the industry. KMB outperforms 83.33% of its industry peers.
KMB has a Return On Equity of 302.98%. This is amongst the best in the industry. KMB outperforms 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 31.21%, KMB belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMB is significantly above the industry average of 15.71%.
The 3 year average ROIC (24.55%) for KMB is below the current ROIC(31.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.38% | ||
| ROE | 302.98% | ||
| ROIC | 31.21% |
ROA(3y)12.1%
ROA(5y)11.98%
ROE(3y)283.11%
ROE(5y)315.59%
ROIC(3y)24.55%
ROIC(5y)24.05%
1.3 Margins
The Profit Margin of KMB (12.69%) is better than 83.33% of its industry peers.
KMB's Profit Margin has improved in the last couple of years.
KMB's Operating Margin of 18.76% is fine compared to the rest of the industry. KMB outperforms 75.00% of its industry peers.
KMB's Operating Margin has been stable in the last couple of years.
KMB's Gross Margin of 36.51% is in line compared to the rest of the industry. KMB outperforms 41.67% of its industry peers.
KMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.76% | ||
| PM (TTM) | 12.69% | ||
| GM | 36.51% |
OM growth 3Y8.75%
OM growth 5Y1.08%
PM growth 3Y10.79%
PM growth 5Y1.65%
GM growth 3Y4.94%
GM growth 5Y0.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KMB is creating value.
Compared to 1 year ago, KMB has less shares outstanding
The number of shares outstanding for KMB has been reduced compared to 5 years ago.
KMB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.48 indicates that KMB is not in any danger for bankruptcy at the moment.
KMB has a Altman-Z score (4.48) which is in line with its industry peers.
KMB has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as KMB would need 2.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.98, KMB is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 8.23 is on the high side and indicates that KMB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 8.23, KMB is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.23 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 4.48 |
ROIC/WACC3.85
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.80 indicates that KMB may have some problems paying its short term obligations.
With a Current ratio value of 0.80, KMB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that KMB may have some problems paying its short term obligations.
KMB has a Quick ratio of 0.54. This is amonst the worse of the industry: KMB underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.11% over the past year.
KMB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.19% yearly.
KMB shows a decrease in Revenue. In the last year, the revenue decreased by -1.83%.
KMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)11.11%
EPS 3Y5.65%
EPS 5Y1.19%
EPS Q2Q%-0.66%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-0.85%
3.2 Future
Based on estimates for the next years, KMB will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y3.96%
EPS Next 2Y4.78%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year-2.64%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.77%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMB is valuated rather expensively with a Price/Earnings ratio of 19.83.
Compared to the rest of the industry, the Price/Earnings ratio of KMB is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KMB to the average of the S&P500 Index (29.35), we can say KMB is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.08 indicates a rather expensive valuation of KMB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMB is on the same level as its industry peers.
KMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
KMB's Enterprise Value to EBITDA ratio is in line with the industry average.
66.67% of the companies in the same industry are more expensive than KMB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMB does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)5
PEG (5Y)16.64
EPS Next 2Y4.78%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
KMB's Dividend Yield is rather good when compared to the industry average which is at 2.56. KMB pays more dividend than 83.33% of the companies in the same industry.
KMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.47%.
KMB has paid a dividend for at least 10 years, which is a reliable track record.
KMB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.47%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
KMB pays out 63.97% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.97%
EPS Next 2Y4.78%
EPS Next 3Y4.84%
144.79
+2.38 (+1.67%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners81.35%
Inst Owner Change2.14%
Ins Owners0.14%
Ins Owner Change18.2%
Market Cap48.02B
Analysts66.67
Price Target148.07 (2.27%)
Short Float %1.67%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend4.87
Dividend Growth(5Y)3.47%
DP63.97%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-1.97%
Max EPS beat(2)6.27%
EPS beat(4)3
Avg EPS beat(4)9.88%
Min EPS beat(4)-1.97%
Max EPS beat(4)21.84%
EPS beat(8)6
Avg EPS beat(8)10.09%
EPS beat(12)9
Avg EPS beat(12)7.27%
EPS beat(16)10
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)0.45%
Revenue beat(8)3
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)-0.88%
PT rev (3m)-3.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.87%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 19.08 | ||
| P/S | 2.39 | ||
| P/FCF | 19.11 | ||
| P/OCF | 14.85 | ||
| P/B | 57.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.99 |
EPS(TTM)7.3
EY5.04%
EPS(NY)7.59
Fwd EY5.24%
FCF(TTM)7.58
FCFY5.23%
OCF(TTM)9.75
OCFY6.73%
SpS60.47
BVpS2.53
TBVpS-3.65
PEG (NY)5
PEG (5Y)16.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.38% | ||
| ROE | 302.98% | ||
| ROCE | 39.44% | ||
| ROIC | 31.21% | ||
| ROICexc | 34.95% | ||
| ROICexgc | 46.03% | ||
| OM | 18.76% | ||
| PM (TTM) | 12.69% | ||
| GM | 36.51% | ||
| FCFM | 12.53% |
ROA(3y)12.1%
ROA(5y)11.98%
ROE(3y)283.11%
ROE(5y)315.59%
ROIC(3y)24.55%
ROIC(5y)24.05%
ROICexc(3y)26.95%
ROICexc(5y)25.74%
ROICexgc(3y)36.14%
ROICexgc(5y)34.44%
ROCE(3y)31.02%
ROCE(5y)30.39%
ROICexcg growth 3Y18.76%
ROICexcg growth 5Y2.73%
ROICexc growth 3Y18.99%
ROICexc growth 5Y1.29%
OM growth 3Y8.75%
OM growth 5Y1.08%
PM growth 3Y10.79%
PM growth 5Y1.65%
GM growth 3Y4.94%
GM growth 5Y0.87%
F-Score8
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.23 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 92.32% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 14.04 | ||
| Cash Conversion | 71.17% | ||
| Profit Quality | 98.74% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 4.48 |
F-Score8
WACC8.1%
ROIC/WACC3.85
Cap/Depr(3y)103.41%
Cap/Depr(5y)118.92%
Cap/Sales(3y)3.9%
Cap/Sales(5y)4.64%
Profit Quality(3y)117.38%
Profit Quality(5y)110.78%
High Growth Momentum
Growth
EPS 1Y (TTM)11.11%
EPS 3Y5.65%
EPS 5Y1.19%
EPS Q2Q%-0.66%
EPS Next Y3.96%
EPS Next 2Y4.78%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-0.85%
Revenue Next Year-2.64%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.77%
Revenue Next 5Y2.66%
EBIT growth 1Y25.35%
EBIT growth 3Y9.89%
EBIT growth 5Y2.78%
EBIT Next Year27.74%
EBIT Next 3Y11.59%
EBIT Next 5Y8.43%
FCF growth 1Y-9.47%
FCF growth 3Y13.41%
FCF growth 5Y10.48%
OCF growth 1Y-8.7%
OCF growth 3Y5.81%
OCF growth 5Y3.4%