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 is quite expensive at the moment. It does show a decent growth rate. KMB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMB was profitable.
KMB had a positive operating cash flow in the past year.
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 15.38%. This is amongst the best in the industry. KMB outperforms 83.33% of its industry peers.
With an excellent Return On Equity value of 302.98%, KMB belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
KMB has a better Return On Invested Capital (31.21%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMB is significantly above the industry average of 15.44%.
The last Return On Invested Capital (31.21%) for KMB is above the 3 year average (24.55%), which is a sign of increasing profitability.
| 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
KMB has a better Profit Margin (12.69%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of KMB has grown nicely.
Looking at the Operating Margin, with a value of 18.76%, KMB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
KMB's Operating Margin has been stable in the last couple of years.
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 | 18.76% | ||
| 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
KMB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, KMB has less shares outstanding
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
KMB has an Altman-Z score of 4.45. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
KMB's Altman-Z score of 4.45 is in line compared to the rest of the industry. KMB outperforms 58.33% of its industry peers.
The Debt to FCF ratio of KMB is 2.98, which is a good value as it means it would take KMB, 2.98 years of fcf income to pay off all of its debts.
KMB's Debt to FCF ratio of 2.98 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 8.23. This is a high value indicating a heavy dependency on external 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 | 4.45 |
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.
KMB has a worse Current ratio (0.80) than 83.33% of its industry peers.
A Quick Ratio of 0.54 indicates that KMB may have some problems paying its short term obligations.
KMB has a worse Quick ratio (0.54) than 91.67% of its industry peers.
| 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.
Measured over the past 5 years, KMB shows a small growth in Earnings Per Share. The EPS has been growing by 1.19% on average per year.
KMB shows a decrease in Revenue. In the last year, the revenue decreased by -1.83%.
The Revenue has been growing slightly by 1.69% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.30% on average over the next years.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y3.96%
EPS Next 2Y4.87%
EPS Next 3Y5.04%
EPS Next 5Y4.3%
Revenue Next Year-2.7%
Revenue Next 2Y-0.2%
Revenue Next 3Y0.75%
Revenue Next 5Y1.77%
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
A Price/Earnings ratio of 19.56 indicates a rather expensive valuation of KMB.
KMB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. KMB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.82, the valuation of KMB can be described as rather expensive.
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 (21.08), we can say KMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 18.82 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.85 | ||
| EV/EBITDA | 11.84 |
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)4.94
PEG (5Y)16.41
EPS Next 2Y4.87%
EPS Next 3Y5.04%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, KMB pays a better dividend. On top of this KMB pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, KMB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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
63.97% 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.
DP63.97%
EPS Next 2Y4.87%
EPS Next 3Y5.04%
142.81
+3.11 (+2.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners81.35%
Inst Owner Change1.15%
Ins Owners0.14%
Ins Owner Change18.2%
Market Cap47.36B
Analysts66.67
Price Target149.03 (4.36%)
Short Float %1.58%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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)0.65%
PT rev (3m)-2.73%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 18.82 | ||
| P/S | 2.36 | ||
| P/FCF | 18.85 | ||
| P/OCF | 14.65 | ||
| P/B | 56.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.84 |
EPS(TTM)7.3
EY5.11%
EPS(NY)7.59
Fwd EY5.31%
FCF(TTM)7.58
FCFY5.31%
OCF(TTM)9.75
OCFY6.83%
SpS60.48
BVpS2.53
TBVpS-3.65
PEG (NY)4.94
PEG (5Y)16.41
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 | 4.45 |
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 2Y4.87%
EPS Next 3Y5.04%
EPS Next 5Y4.3%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-0.85%
Revenue Next Year-2.7%
Revenue Next 2Y-0.2%
Revenue Next 3Y0.75%
Revenue Next 5Y1.77%
EBIT growth 1Y25.35%
EBIT growth 3Y9.89%
EBIT growth 5Y2.78%
EBIT Next Year27.59%
EBIT Next 3Y11.68%
EBIT Next 5Y7.64%
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%