KIMBERLY-CLARK CORP (KMB)
US4943681035 - Common Stock
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. While KMB has a great profitability rating, there are some minor concerns on its financial health. KMB has a valuation in line with the averages, but on the other hand it scores bad on growth. KMB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMB had positive earnings in the past year.
In the past year KMB had a positive cash flow from operations.
Each year in the past 5 years KMB has been profitable.
KMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMB has a Return On Assets of 15.19%. This is amongst the best in the industry. KMB outperforms 83.33% of its industry peers.
The Return On Equity of KMB (202.88%) is better than 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 29.34%, KMB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KMB is significantly above the industry average of 15.22%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(29.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 202.88% | ||
| ROIC | 29.34% |
ROA(3y)10.37%
ROA(5y)11.73%
ROE(3y)299.76%
ROE(5y)N/A
ROIC(3y)20.65%
ROIC(5y)23.74%
1.3 Margins
Looking at the Profit Margin, with a value of 12.97%, KMB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of KMB has grown nicely.
The Operating Margin of KMB (18.85%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of KMB has declined.
KMB has a Gross Margin (36.41%) 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 | 18.85% | ||
| PM (TTM) | 12.97% | ||
| GM | 36.41% |
OM growth 3Y-9.11%
OM growth 5Y-3.13%
PM growth 3Y-11.1%
PM growth 5Y2.51%
GM growth 3Y-2.42%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KMB is creating value.
The number of shares outstanding for KMB has been reduced compared to 1 year ago.
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
KMB has an Altman-Z score of 4.24. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
KMB's Altman-Z score of 4.24 is in line compared to the rest of the industry. KMB outperforms 50.00% of its industry peers.
The Debt to FCF ratio of KMB is 2.58, which is a good value as it means it would take KMB, 2.58 years of fcf income to pay off all of its debts.
KMB has a Debt to FCF ratio of 2.58. This is comparable to the rest of the industry: KMB outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 5.38 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 5.38, KMB is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 4.24 |
ROIC/WACC3.59
WACC8.17%
2.3 Liquidity
KMB has a Current Ratio of 0.83. 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 Current ratio, with a value of 0.83, KMB is doing worse than 83.33% of the companies in the same industry.
KMB has a Quick Ratio of 0.83. This is a bad value and indicates that KMB is not financially healthy enough and could expect problems in meeting its short term obligations.
KMB has a Quick ratio of 0.55. This is amonst the worse of the industry: KMB underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.76% over the past year.
Measured over the past years, KMB shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.12% on average per year.
The Revenue has decreased by -1.59% in the past year.
Measured over the past years, KMB shows a small growth in Revenue. The Revenue has been growing by 2.02% on average per year.
EPS 1Y (TTM)10.76%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS Q2Q%5.17%
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Sales Q2Q%-3.51%
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 6.50% on average per year.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y12.89%
EPS Next 2Y8.23%
EPS Next 3Y7.11%
EPS Next 5Y6.5%
Revenue Next Year-2.22%
Revenue Next 2Y-1.25%
Revenue Next 3Y0.08%
Revenue Next 5Y1.29%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMB is valuated rather expensively with a Price/Earnings ratio of 18.16.
Based on the Price/Earnings ratio, KMB is valued a bit cheaper than 66.67% of the companies in the same industry.
KMB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.25, KMB is valued on the expensive side.
KMB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of KMB to the average of the S&P500 Index (23.99), we can say KMB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMB indicates a somewhat cheap valuation: KMB is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KMB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y8.23%
EPS Next 3Y7.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, KMB has a reasonable but not impressive dividend return.
KMB's Dividend Yield is rather good when compared to the industry average which is at 2.40. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.39%.
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)3.39%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
KMB pays out 62.10% of its income as dividend. This is not a sustainable payout ratio.
KMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.1%
EPS Next 2Y8.23%
EPS Next 3Y7.11%
KIMBERLY-CLARK CORP
NYSE:KMB (12/26/2024, 2:57:01 PM)
132.78
+0.6 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners79.39%
Inst Owner Change0.22%
Ins Owners0.13%
Ins Owner Change0.42%
Market Cap44.28B
Analysts67.5
Price Target153.78 (15.82%)
Short Float %1.26%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Dividend Growth(5Y)3.39%
DP62.1%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.82%
Min EPS beat(2)6.27%
Max EPS beat(2)13.37%
EPS beat(4)3
Avg EPS beat(4)9.71%
Min EPS beat(4)-2.65%
Max EPS beat(4)21.84%
EPS beat(8)7
Avg EPS beat(8)10.45%
EPS beat(12)10
Avg EPS beat(12)7.75%
EPS beat(16)11
Avg EPS beat(16)4.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-2.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)0.23%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.63%
PT rev (1m)-0.46%
PT rev (3m)1.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.58%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 17.25 | ||
| P/S | 2.2 | ||
| P/FCF | 15.25 | ||
| P/OCF | 12.19 | ||
| P/B | 34.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.11 |
EPS(TTM)7.31
EY5.51%
EPS(NY)7.7
Fwd EY5.8%
FCF(TTM)8.7
FCFY6.56%
OCF(TTM)10.89
OCFY8.2%
SpS60.27
BVpS3.85
TBVpS-2.61
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 202.88% | ||
| ROCE | 37.51% | ||
| ROIC | 29.34% | ||
| ROICexc | 32.96% | ||
| ROICexgc | 43.36% | ||
| OM | 18.85% | ||
| PM (TTM) | 12.97% | ||
| GM | 36.41% | ||
| FCFM | 14.44% |
ROA(3y)10.37%
ROA(5y)11.73%
ROE(3y)299.76%
ROE(5y)N/A
ROIC(3y)20.65%
ROIC(5y)23.74%
ROICexc(3y)21.96%
ROICexc(5y)25.01%
ROICexgc(3y)29.6%
ROICexgc(5y)32.89%
ROCE(3y)26.4%
ROCE(5y)30.35%
ROICexcg growth 3Y-2.86%
ROICexcg growth 5Y-4.38%
ROICexc growth 3Y-2.51%
ROICexc growth 5Y-5.52%
OM growth 3Y-9.11%
OM growth 5Y-3.13%
PM growth 3Y-11.1%
PM growth 5Y2.51%
GM growth 3Y-2.42%
GM growth 5Y0.76%
F-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 97.07% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.02% | ||
| Profit Quality | 111.35% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 4.24 |
F-Score7
WACC8.17%
ROIC/WACC3.59
Cap/Depr(3y)116.46%
Cap/Depr(5y)126.82%
Cap/Sales(3y)4.42%
Cap/Sales(5y)5.24%
Profit Quality(3y)116.12%
Profit Quality(5y)105.19%
High Growth Momentum
Growth
EPS 1Y (TTM)10.76%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS Q2Q%5.17%
EPS Next Y12.89%
EPS Next 2Y8.23%
EPS Next 3Y7.11%
EPS Next 5Y6.5%
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Sales Q2Q%-3.51%
Revenue Next Year-2.22%
Revenue Next 2Y-1.25%
Revenue Next 3Y0.08%
Revenue Next 5Y1.29%
EBIT growth 1Y24.44%
EBIT growth 3Y-7.11%
EBIT growth 5Y-1.17%
EBIT Next Year36.25%
EBIT Next 3Y13.23%
EBIT Next 5Y9.87%
FCF growth 1Y56.75%
FCF growth 3Y3.39%
FCF growth 5Y5.81%
OCF growth 1Y29.53%
OCF growth 3Y-1.7%
OCF growth 5Y3.59%