SWX:KMY

Stock Analysis Report

Executive Summary

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Kimberly-Clark's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SWX:KMY

-0.4%

CH Household Products

0.4%

CH Market


1 Year Return

19.1%

SWX:KMY

-10.5%

CH Household Products

2.3%

CH Market

KMY outperformed the Household Products industry which returned -10.5% over the past year.

KMY outperformed the Market in Switzerland which returned 2.3% over the past year.


Share holder returns

KMYIndustryMarket
7 Day0%-0.4%0.4%
30 Day0%-4.0%-1.2%
90 Day4.7%-0.5%1.0%
1 Year23.2%19.1%-8.2%-10.5%7.6%2.3%
3 Yearn/a-17.4%-22.6%29.6%13.2%
5 Yearn/a24.5%11.2%32.1%11.6%

Price Volatility Vs. Market

How volatile is Kimberly-Clark's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kimberly-Clark undervalued based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kimberly-Clark's share price is below the future cash flow value, and at a moderate discount (> 20%).

Kimberly-Clark's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Kimberly-Clark is overvalued based on earnings compared to the Europe Household Products industry average.

Kimberly-Clark is overvalued based on earnings compared to the Switzerland market.


Price Based on Expected Growth

Kimberly-Clark is poor value based on expected growth next year.


Price Based on Value of Assets

Kimberly-Clark has negative assets, we can't compare the value of its assets to the Europe Household Products industry average.


Next Steps

Future Growth

How is Kimberly-Clark expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kimberly-Clark's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Kimberly-Clark's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).

Kimberly-Clark's revenue growth is positive but not above the Switzerland market average.

Kimberly-Clark's earnings growth is expected to exceed the Switzerland market average.

Kimberly-Clark's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Kimberly-Clark is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Kimberly-Clark performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kimberly-Clark's year on year earnings growth rate has been positive over the past 5 years.

Kimberly-Clark's 1-year earnings growth is less than its 5-year average (4% vs 6.3%)

Kimberly-Clark's earnings growth has exceeded the Europe Household Products industry average in the past year (4% vs -7.4%).


Return on Equity

Whilst Kimberly-Clark made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Kimberly-Clark used its assets more efficiently than the Europe Household Products industry average last year based on Return on Assets.


Return on Capital Employed

Kimberly-Clark has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kimberly-Clark's financial position?


Financial Position Analysis

Kimberly-Clark's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Kimberly-Clark's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kimberly-Clark's level of debt (16060%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (145.8% vs 16060% today).

Debt is well covered by operating cash flow (32%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Kimberly-Clark's current dividend yield, its reliability and sustainability?

3.08%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Kimberly-Clark before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Kimberly-Clark's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (2%).

Kimberly-Clark's dividend is below the markets top 25% of dividend payers in Switzerland (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of Kimberly-Clark's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Mike Hsu (55yo)

0.6yrs

Tenure

US$6,812,918

Compensation

Mr. Michael D. Hsu, also known as Mike, has been Director of Kimberly-Clark Corporation since January 1, 2017 and serves as its Chief Executive Officer since January 1, 2019 and served as its President & C ...


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in Switzerland.

Mike's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

53.5yo

Average Age

The tenure for the Kimberly-Clark management team is about average.


Board Age and Tenure

13.9yrs

Average Tenure

67yo

Average Age

The average tenure for the Kimberly-Clark board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Kimberly-Clark individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$640,18209 Aug 19
John Boston
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resource Officer
Shares4,834
Max PriceUS$132.43
SellUS$9,942,14525 Apr 19
Thomas Falk
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares77,610
Max PriceUS$128.10
SellUS$704,89411 Feb 19
Anthony Palmer
EntityIndividual
Shares6,122
Max PriceUS$115.14
SellUS$1,558,85228 Nov 18
Michael Azbell
EntityIndividual
Shares13,565
Max PriceUS$114.92
SellUS$111,93215 Nov 18
Jeffrey Melucci
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares1,000
Max PriceUS$111.93

Ownership Breakdown


Management Team

  • Thomas Falk (60yo)

    Executive Chairman

    • Tenure: 16.5yrs
    • Compensation: US$13.01m
  • Maria G. Henry (52yo)

    Senior VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$4.67m
  • Paul Alexander (53yo)

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Jeff Melucci (48yo)

    Senior VP & General Counsel

    • Tenure: 1.9yrs
  • Mike Hsu (55yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$6.81m
  • Suja Chandrasekaran (52yo)

    Chief Information Officer

    • Tenure: 3.3yrs
  • Kim Underhill (54yo)

    President of North America Consumer Business

    • Tenure: 5.3yrs
    • Compensation: US$4.06m
  • Gustavo Paz (57yo)

    President of Europe

    • Tenure: 5.3yrs
    • Compensation: US$3.38m
  • Giusy Buonfantino (51yo)

    Chief Marketing Officer

    • Tenure: 1.3yrs
  • John Boston (56yo)

    Senior VP & Chief Human Resource Officer

    • Tenure: 2.6yrs

Board Members

  • Mike White (67yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$300.00k
  • Robert Decherd (67yo)

    Independent Director

    • Tenure: 23.6yrs
    • Compensation: US$280.00k
  • Thomas Falk (60yo)

    Executive Chairman

    • Tenure: 16.5yrs
    • Compensation: US$13.01m
  • Marc J. Shapiro (71yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$280.00k
  • Claudio Xavier González Laporte (84yo)

    Chairman of Kimberly-Clark De Mexico S A De C V

    • Tenure: 0.0yrs
    • Compensation: US$53.56k
  • Nancy Karch (71yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$310.00k
  • Mae Jemison (62yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$280.00k
  • Abelardo Bru (70yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$300.00k
  • Ian Read (65yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$320.00k
  • Mike Hsu (55yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$6.81m

Company Information

Kimberly-Clark Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kimberly-Clark Corporation
  • Ticker: KMY
  • Exchange: SWX
  • Founded: 1872
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$47.641b
  • Listing Market Cap: US$46.576b
  • Shares outstanding: 344.20m
  • Website: https://www.kimberly-clark.com

Number of Employees


Location

  • Kimberly-Clark Corporation
  • PO Box 619100
  • Dallas
  • Texas
  • 75261
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
KMYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
KMYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0JQZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
KMBB34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM STK USD1.25BRBRLAug 2015

Biography

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide. It operates through three segments: Personal Care,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 21:49
End of Day Share Price2019/06/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.