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 is not valued too expensively and it also shows a decent 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.
KMB had positive earnings in each of the past 5 years.
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 10.79%, KMB is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Return On Equity of KMB (176.72%) is better than 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 23.84%, 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 14.24%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(23.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 176.72% | ||
| ROIC | 23.84% |
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
KMB has a Profit Margin (9.05%) which is in line with its industry peers.
KMB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.27%, KMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
KMB's Operating Margin has declined in the last couple of years.
The Gross Margin of KMB (35.40%) 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 | 15.27% | ||
| PM (TTM) | 9.05% | ||
| GM | 35.4% |
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
KMB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KMB has been reduced compared to 1 year ago.
KMB has less shares outstanding than it did 5 years ago.
KMB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.10 indicates that KMB is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.10, KMB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Debt to FCF ratio of KMB is 3.07, which is a good value as it means it would take KMB, 3.07 years of fcf income to pay off all of its debts.
KMB's Debt to FCF ratio of 3.07 is in line compared to the rest of the industry. KMB outperforms 58.33% of its industry peers.
KMB has a Debt/Equity ratio of 6.88. This is a high value indicating a heavy dependency on external financing.
KMB has a Debt to Equity ratio of 6.88. This is in the lower half of the industry: KMB underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.88 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.1 |
ROIC/WACC2.97
WACC8.02%
2.3 Liquidity
KMB has a Current Ratio of 0.81. 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's Current ratio of 0.81 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 0.54 indicates that KMB may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, KMB is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.13% 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 been growing slightly by 0.54% 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)16.13%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS growth Q2Q20.36%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Revenue growth Q2Q-0.89%
3.2 Future
KMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
KMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y5.93%
EPS Next 2Y6.63%
EPS Next 3Y6.33%
EPS Next 5Y6.03%
Revenue Next Year0.08%
Revenue Next 2Y1.32%
Revenue Next 3Y1.83%
Revenue Next 5Y1.92%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.43, the valuation of KMB can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as KMB.
Compared to an average S&P500 Price/Earnings ratio of 28.60, KMB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.98, KMB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KMB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, KMB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
KMB's Enterprise Value to EBITDA is on the same level as the industry average.
KMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KMB is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 13.55 |
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 decent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)N/A
EPS Next 2Y6.63%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.62%.
Compared to an average industry Dividend Yield of 2.45, KMB pays a better dividend. On top of this KMB pays more dividend than 91.67% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.39%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
86.45% of the earnings are spent on dividend by KMB. This is not a sustainable payout ratio.
The dividend of KMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP86.45%
EPS Next 2Y6.63%
EPS Next 3Y6.33%
KIMBERLY-CLARK CORP
NYSE:KMB (5/17/2024, 7:09:30 PM)
After market: 134.29 0 (0%)134.29
-0.38 (-0.28%)
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 Cap45.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.98 | ||
| 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)3.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 176.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.27% | ||
| PM (TTM) | 9.05% | ||
| GM | 35.4% | ||
| 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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.54 | ||
| 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)
Growth
EPS 1Y (TTM)16.13%
EPS 3Y-5.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.54%
Revenue growth 3Y2.2%
Revenue growth 5Y
Revenue growth 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