KIMBERLY-CLARK CORP (KMB)
US4943681035 - Common Stock
Overall KMB gets a fundamental rating of 5 out of 10. We evaluated KMB against 12 industry peers in the Household Products industry. While KMB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KMB has a decent growth rate and is not valued too expensively. Finally 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.
KMB had positive earnings in each of the past 5 years.
In the past 5 years KMB always reported a positive cash flow from operatings.
1.2 Ratios
KMB's Return On Assets of 15.19% is amongst the best of the industry. KMB outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 202.88%, KMB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Invested Capital of KMB (29.34%) is better than 100.00% of its industry peers.
KMB had an Average Return On Invested Capital over the past 3 years of 20.65%. This is significantly above the industry average of 15.23%.
The last Return On Invested Capital (29.34%) for KMB is above the 3 year average (20.65%), which is a sign of increasing profitability.
| 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
The Profit Margin of KMB (12.97%) is better than 83.33% of its industry peers.
KMB's Profit Margin has improved in the last couple of years.
KMB has a better Operating Margin (18.85%) than 83.33% of its industry peers.
KMB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.41%, KMB is in line with its industry, outperforming 41.67% of the companies in the same 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.
KMB has less shares outstanding than it did 1 year ago.
KMB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KMB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.31 indicates that KMB is not in any danger for bankruptcy at the moment.
KMB has a Altman-Z score of 4.31. This is comparable to the rest of the industry: KMB outperforms 50.00% of its industry peers.
KMB has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as KMB would need 2.58 years to pay back of all of its debts.
KMB's Debt to FCF ratio of 2.58 is in line compared 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.
The Debt to Equity ratio of KMB (5.38) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 4.31 |
ROIC/WACC3.63
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.83 indicates that KMB may have some problems paying its short term obligations.
KMB's Current ratio of 0.83 is on the low side compared to the rest of the industry. KMB is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.55 indicates that KMB may have some problems paying its short term obligations.
KMB has a worse Quick ratio (0.55) than 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.
KMB shows a decrease in Revenue. In the last year, the revenue decreased by -1.59%.
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
KMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.21% yearly.
The Revenue is expected to grow by 1.91% on average over the next years.
EPS Next Y12.86%
EPS Next 2Y8.29%
EPS Next 3Y7.14%
EPS Next 5Y6.21%
Revenue Next Year-2.2%
Revenue Next 2Y-1.07%
Revenue Next 3Y0.13%
Revenue Next 5Y1.91%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.94, KMB is valued on the expensive side.
KMB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of KMB to the average of the S&P500 Index (29.20), we can say KMB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of KMB can be described as rather expensive.
KMB's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.00. KMB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KMB.
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 | 15.9 | ||
| EV/EBITDA | 11.57 |
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)1.47
PEG (5Y)N/A
EPS Next 2Y8.29%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.37, KMB pays a better dividend. On top of this KMB pays more dividend than 100.00% of the companies listed in the same industry.
KMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.39%.
KMB has paid a dividend for at least 10 years, which is 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 Years33
Div Non Decr Years33
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 2Y8.29%
EPS Next 3Y7.14%
KIMBERLY-CLARK CORP
NYSE:KMB (11/22/2024, 8:04:00 PM)
After market: 138.42 0 (0%)138.42
+1.39 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 17.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 202.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.85% | ||
| PM (TTM) | 12.97% | ||
| GM | 36.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.76%
EPS 3Y-5.32%
EPS 5Y
EPS Q2Q%
EPS Next Y12.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y2.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y