KIMBERLY-CLARK CORP (KMB) Stock Fundamental Analysis
NYSE:KMB - New York Stock Exchange, Inc. - US4943681035 - Common Stock - Currency: USD
KMB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. While KMB has a great profitability rating, there are quite some concerns on its financial health. KMB has a correct valuation and a medium growth rate. 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.
In the past 5 years KMB has always been profitable.
KMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.38%, KMB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of KMB (302.98%) is better than 83.33% of its industry peers.
The Return On Invested Capital of KMB (30.97%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMB is significantly above the industry average of 15.62%.
The last Return On Invested Capital (30.97%) for KMB is above the 3 year average (23.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.38% | ||
| ROE | 302.98% | ||
| ROIC | 30.97% |
ROA(3y)12.1%
ROA(5y)11.98%
ROE(3y)283.11%
ROE(5y)315.59%
ROIC(3y)23.68%
ROIC(5y)23.53%
1.3 Margins
KMB has a better Profit Margin (12.69%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of KMB has grown nicely.
With an excellent Operating Margin value of 18.62%, KMB belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of KMB has remained more or less at the same level.
KMB has a Gross Margin (36.51%) which is comparable to the rest of the industry.
KMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.62% | ||
| PM (TTM) | 12.69% | ||
| GM | 36.51% |
OM growth 3Y5.65%
OM growth 5Y-0.66%
PM growth 3Y10.79%
PM growth 5Y1.65%
GM growth 3Y4.94%
GM growth 5Y0.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for KMB has been reduced compared to a year ago.
2.2 Solvency
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.
KMB has a Debt to FCF ratio (2.98) which is in line with its industry peers.
A Debt/Equity ratio of 8.23 is on the high side and indicates that KMB has dependencies on debt financing.
KMB has a Debt to Equity ratio of 8.23. This is in the lower half of the industry: KMB underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.23 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | N/A |
ROIC/WACC3.7
WACC8.38%
2.3 Liquidity
A Current Ratio of 0.80 indicates that KMB may have some problems paying its short term obligations.
KMB has a Current ratio of 0.80. This is amonst the worse of the industry: KMB underperforms 83.33% of its industry peers.
KMB has a Quick Ratio of 0.80. This is a bad value and indicates that KMB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, KMB is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
KMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
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 Y4.94%
EPS Next 2Y5.12%
EPS Next 3Y5.75%
EPS Next 5Y5.31%
Revenue Next Year-0.89%
Revenue Next 2Y0.96%
Revenue Next 3Y1.78%
Revenue Next 5Y2.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 17.71 indicates a rather expensive valuation of KMB.
The rest of the industry has a similar Price/Earnings ratio as KMB.
Compared to an average S&P500 Price/Earnings ratio of 28.47, KMB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.88, KMB is valued correctly.
KMB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMB to the average of the S&P500 Index (92.74), we can say KMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
KMB's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.16 | ||
| EV/EBITDA | 11.07 |
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.
KMB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.59
PEG (5Y)14.86
EPS Next 2Y5.12%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.88%. 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 2.49. KMB pays more dividend than 100.00% of the companies in the same industry.
KMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.47%.
KMB has been paying a dividend for at least 10 years, so it has a reliable track record.
KMB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y5.12%
EPS Next 3Y5.75%
KIMBERLY-CLARK CORP
NYSE:KMB (2/4/2025, 8:04:00 PM)
After market: 129.3 0 (0%)129.3
-1.15 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners79.39%
Inst Owner Change0.07%
Ins Owners0.13%
Ins Owner Change0.24%
Market Cap43.12B
Analysts66.67
Price Target149.39 (15.54%)
Short Float %1.49%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)-2.5%
PT rev (3m)-3.3%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.15 | ||
| P/FCF | 17.16 | ||
| P/OCF | 13.33 | ||
| P/B | 51.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)7.3
EY5.65%
EPS(NY)7.66
Fwd EY5.92%
FCF(TTM)7.54
FCFY5.83%
OCF(TTM)9.7
OCFY7.5%
SpS60.15
BVpS2.52
TBVpS-3.63
PEG (NY)3.59
PEG (5Y)14.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.38% | ||
| ROE | 302.98% | ||
| ROCE | 39.13% | ||
| ROIC | 30.97% | ||
| ROICexc | 34.68% | ||
| ROICexgc | 45.67% | ||
| OM | 18.62% | ||
| 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)23.68%
ROIC(5y)23.53%
ROICexc(3y)25.98%
ROICexc(5y)25.16%
ROICexgc(3y)34.87%
ROICexgc(5y)33.67%
ROCE(3y)29.93%
ROCE(5y)29.73%
ROICexcg growth 3Y15.39%
ROICexcg growth 5Y0.97%
ROICexc growth 3Y15.6%
ROICexc growth 5Y-0.45%
OM growth 3Y5.65%
OM growth 5Y-0.66%
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 | 1.53 | ||
| Cap/Depr | 92.32% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.63% | ||
| Profit Quality | 98.74% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | N/A |
F-Score8
WACC8.38%
ROIC/WACC3.7
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 Y4.94%
EPS Next 2Y5.12%
EPS Next 3Y5.75%
EPS Next 5Y5.31%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-0.85%
Revenue Next Year-0.89%
Revenue Next 2Y0.96%
Revenue Next 3Y1.78%
Revenue Next 5Y2.66%
EBIT growth 1Y24.38%
EBIT growth 3Y6.76%
EBIT growth 5Y1.02%
EBIT Next Year25.37%
EBIT Next 3Y11.83%
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%