Do Kimberly-Clark de México S. A. B. de C. V's (BMV:KIMBERA) Earnings Warrant Your Attention?

By
Simply Wall St
Published
May 20, 2021
BMV:KIMBER A
Source: Shutterstock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'

So if you're like me, you might be more interested in profitable, growing companies, like Kimberly-Clark de México S. A. B. de C. V (BMV:KIMBERA). While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.

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

How Fast Is Kimberly-Clark de México S. A. B. de C. V Growing?

If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That makes EPS growth an attractive quality for any company. We can see that in the last three years Kimberly-Clark de México S. A. B. de C. V grew its EPS by 14% per year. That's a good rate of growth, if it can be sustained.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Kimberly-Clark de México S. A. B. de C. V maintained stable EBIT margins over the last year, all while growing revenue 6.7% to Mex$47b. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

earnings-and-revenue-history
BMV:KIMBER A Earnings and Revenue History May 21st 2021

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Kimberly-Clark de México S. A. B. de C. V's forecast profits?

Are Kimberly-Clark de México S. A. B. de C. V Insiders Aligned With All Shareholders?

Since Kimberly-Clark de México S. A. B. de C. V has a market capitalization of Mex$110b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth Mex$6.6b. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.

Is Kimberly-Clark de México S. A. B. de C. V Worth Keeping An Eye On?

One important encouraging feature of Kimberly-Clark de México S. A. B. de C. V is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Kimberly-Clark de México S. A. B. de C. V that you should be aware of.

You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

When trading Kimberly-Clark de México S. A. B. de C. V or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.