Stock Analysis

Could The Kimberly-Clark de México, S. A. B. de C. V. (BMV:KIMBERA) Ownership Structure Tell Us Something Useful?

BMV:KIMBER A
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The big shareholder groups in Kimberly-Clark de México, S. A. B. de C. V. (BMV:KIMBERA) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of Mex$114b, Kimberly-Clark de México S. A. B. de C. V is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Kimberly-Clark de México S. A. B. de C. V.

See our latest analysis for Kimberly-Clark de México S. A. B. de C. V

ownership-breakdown
BMV:KIMBER A Ownership Breakdown January 28th 2021

What Does The Institutional Ownership Tell Us About Kimberly-Clark de México S. A. B. de C. V?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Kimberly-Clark de México S. A. B. de C. V. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kimberly-Clark de México S. A. B. de C. V's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BMV:KIMBER A Earnings and Revenue Growth January 28th 2021

We note that hedge funds don't have a meaningful investment in Kimberly-Clark de México S. A. B. de C. V. Looking at our data, we can see that the largest shareholder is Kimberly-Clark Corporation with 48% of shares outstanding. With 6.0% and 2.9% of the shares outstanding respectively, Claudio Xavier González Laporte and BlackRock, Inc. are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Kimberly-Clark de México S. A. B. de C. V

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

I can report that insiders do own shares in Kimberly-Clark de México, S. A. B. de C. V.. The insiders have a meaningful stake worth Mex$6.8b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public holds a 27% stake in Kimberly-Clark de México S. A. B. de C. V. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 48% of the Kimberly-Clark de México S. A. B. de C. V shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Kimberly-Clark de México S. A. B. de C. V is showing 1 warning sign in our investment analysis , you should know about...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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