NYSE:KMB

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

-1.9%

KMB

-3.4%

US Household Products

2.3%

US Market


1 Year Return

23.8%

KMB

36.4%

US Household Products

5.6%

US Market

Return vs Industry: KMB underperformed the US Household Products industry which returned 36.4% over the past year.

Return vs Market: KMB exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

KMBIndustryMarket
7 Day-1.9%-3.4%2.3%
30 Day4.6%-1.9%-1.0%
90 Day-2.1%0.8%-0.7%
1 Year27.9%23.8%40.3%36.4%7.9%5.6%
3 Year23.7%12.1%46.6%35.0%45.6%36.3%
5 Year46.4%19.6%64.3%42.2%65.8%47.6%

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

Valuation

Is Kimberly-Clark undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KMB ($134.7) is trading below our estimate of fair value ($210.97)

Significantly Undervalued: KMB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KMB is good value based on its PE Ratio (25.8x) compared to the Household Products industry average (26.5x).

PE vs Market: KMB is poor value based on its PE Ratio (25.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KMB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KMB has negative assets, so we can't compare its PB Ratio to the US Household Products industry average.


Next Steps

Future Growth

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

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMB's forecast earnings growth (12.1% per year) is above the savings rate (2.7%).

Earnings vs Market: KMB's earnings (12.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: KMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: KMB's revenue (1.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KMB's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KMB is forecast to be unprofitable in 3 years.


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

Earnings Trend: KMB's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: KMB's earnings growth over the past year (4%) is below its 5-year average (6.3% per year).

Earnings vs Industry: KMB earnings growth over the past year (4%) exceeded the Household Products industry -7.1%.


Return on Equity

High ROE: Whilst KMB's Return on Equity (3688%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: KMB has a higher Return on Assets than the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: KMB has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kimberly-Clark's financial position?


Financial Position Analysis

Short Term Liabilities: KMB's short term assets ($5.3B) do not cover its short term liabilities ($6.6B)

Long Term Liabilities: KMB's short term assets (5.3B) do not cover its long term liabilities (8.7B)


Debt to Equity History and Analysis

Debt Level: KMB's debt to equity ratio (16060%) is considered high

Reducing Debt: KMB's debt to equity ratio has increased from 145.8% to 16060% over the past 5 years.

Debt Coverage: KMB's debt is well covered by operating cash flow (32%).

Interest Coverage: KMB's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet

Inventory Level: KMB has a high level of physical assets or inventory.

Debt Coverage by Assets: KMB's 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?

3.06%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KMB's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: KMB's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: KMB's dividends per share have been stable in the past 10 years.

Growing Dividend: KMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.9%), KMB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMB's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Mike Hsu (55yo)

0.8yrs

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

Compensation vs. Market: Mike has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: KMB's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

14.1yrs

Average Tenure

67yo

Average Age

Experienced Board: KMB's board of directors are seasoned and experienced ( 14.1 years average tenure).


Insider Trading

Insider Buying: KMB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$658,68509 Aug 19
John Boston
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resource Officer
Shares4,834
Max PriceUS$136.26
SellUS$9,758,68125 Apr 19
Thomas Falk
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares77,610
Max PriceUS$125.74
SellUS$704,70311 Feb 19
Anthony Palmer
EntityIndividual
Shares6,122
Max PriceUS$115.11
SellUS$1,559,97528 Nov 18
Michael Azbell
EntityIndividual
Shares13,565
Max PriceUS$115.00
SellUS$111,18015 Nov 18
Jeffrey Melucci
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares1,000
Max PriceUS$111.18

Ownership Breakdown


Management Team

  • Thomas Falk (60yo)

    Executive Chairman

    • Tenure: 16.7yrs
    • Compensation: US$13.01m
  • Maria G. Henry (52yo)

    Senior VP & CFO

    • Tenure: 4.5yrs
    • Compensation: US$4.67m
  • Paul Alexander (53yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jeff Melucci (48yo)

    Senior VP & General Counsel

    • Tenure: 2.1yrs
  • Mike Hsu (55yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$6.81m
  • Suja Chandrasekaran (52yo)

    Chief Information Officer

    • Tenure: 3.4yrs
  • Kim Underhill (54yo)

    President of North America Consumer Business

    • Tenure: 5.5yrs
    • Compensation: US$4.06m
  • Gustavo Paz (57yo)

    President of Europe

    • Tenure: 5.5yrs
    • Compensation: US$3.38m
  • Giusy Buonfantino (51yo)

    Chief Marketing Officer

    • Tenure: 1.4yrs
  • John Boston (56yo)

    Senior VP & Chief Human Resource Officer

    • Tenure: 2.8yrs

Board Members

  • Mike White (67yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$300.00k
  • Robert Decherd (67yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$280.00k
  • Thomas Falk (60yo)

    Executive Chairman

    • Tenure: 16.7yrs
    • Compensation: US$13.01m
  • Marc J. Shapiro (71yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$280.00k
  • Claudio Xavier González Laporte (84yo)

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

    • Tenure: 0yrs
    • Compensation: US$53.56k
  • Nancy Karch (71yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$310.00k
  • Mae Jemison (62yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$280.00k
  • Abelardo Bru (70yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$300.00k
  • Ian Read (65yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: US$320.00k
  • Mike Hsu (55yo)

    CEO & Director

    • Tenure: 0.8yrs
    • 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: KMB
  • Exchange: NYSE
  • Founded: 1872
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$46.364b
  • 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 Analysis2019/10/16 23:37
End of Day Share Price2019/10/16 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.