NYSE:KMB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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

Stable Share Price: KMB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.6%

KMB

-1.0%

US Household Products

0.4%

US Market


1 Year Return

2.1%

KMB

17.4%

US Household Products

17.8%

US Market

Return vs Industry: KMB underperformed the US Household Products industry which returned 17.4% over the past year.

Return vs Market: KMB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

KMBIndustryMarket
7 Day-8.6%-1.0%0.4%
30 Day-7.3%3.2%6.1%
90 Day-10.8%9.5%8.9%
1 Year5.1%2.1%20.2%17.4%20.5%17.8%
3 Year33.0%20.6%66.6%53.7%42.3%32.9%
5 Year31.2%12.1%95.2%70.3%84.2%63.4%

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?

21.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMB ($136.88) is trading below our estimate of fair value ($189.62)

Significantly Below Fair Value: KMB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KMB is good value based on its PE Ratio (19.8x) compared to the US Household Products industry average (26.2x).

PE vs Market: KMB is poor value based on its PE Ratio (19.8x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: KMB is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: KMB is overvalued based on its PB Ratio (139.1x) compared to the US Household Products industry average (7.3x).


Next Steps

Future Growth

How is Kimberly-Clark forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMB's forecast earnings growth (8.1% per year) is above the savings rate (2.2%).

Earnings vs Market: KMB's earnings (8.1% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: KMB's revenue (2.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: KMB's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMB's Return on Equity is forecast to be very high in 3 years time (391.8%).


Next Steps

Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMB has high quality earnings.

Growing Profit Margin: KMB's current net profit margins (12.5%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: KMB's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: KMB's earnings growth over the past year (16.7%) exceeds its 5-year average (10% per year).

Earnings vs Industry: KMB earnings growth over the past year (16.7%) underperformed the Household Products industry 30.9%.


Return on Equity

High ROE: Whilst KMB's Return on Equity (416.98%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Kimberly-Clark's financial position?


Financial Position Analysis

Short Term Liabilities: KMB's short term assets ($6.1B) do not cover its short term liabilities ($6.1B).

Long Term Liabilities: KMB's short term assets ($6.1B) do not cover its long term liabilities ($9.9B).


Debt to Equity History and Analysis

Debt Level: KMB's debt to equity ratio (1385.3%) is considered high.

Reducing Debt: KMB's debt to equity ratio has reduced from 2828.3% to 1385.3% over the past 5 years.

Debt Coverage: KMB's debt is well covered by operating cash flow (47.1%).

Interest Coverage: KMB's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KMB's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: KMB's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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: With its reasonable payout ratio (61.3%), KMB's dividend 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 (56.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Mike Hsu (56 yo)

1.75yrs

Tenure

US$12,028,120

Compensation

Mr. Michael D. Hsu, also known as Mike, has been Director of Kimberly-Clark Corp. since January 1, 2017 and has been its Chief Executive Officer since January 1, 2019. Mr. Hsu has been Director at Texas In ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD12.03M) is about average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hsu
Chairman & CEO1.75yrsUS$12.03m0.015%
$ 6.8m
Maria G. Henry
Senior VP & CFO5.5yrsUS$6.01m0.0075%
$ 3.5m
Jeffrey Melucci
Senior VP of Business Development & General Counsel3.08yrsUS$3.07m0.0035%
$ 1.6m
Kimberly Underhill
President of North America Consumer Business6.5yrsUS$4.52m0.010%
$ 4.8m
Paul Alexander
Vice President of Investor Relationsno datano datano data
Cristina Garcia-Cervigon
Regional Managing Director of Austral5.42yrsno datano data
Aaron Powell
President of Asia-Pacific Consumer Businessno datano data0.00083%
$ 383.1k
Achal Agarwal
Chief Strategy & Transformation Officer0.58yrno data0.015%
$ 7.0m
Tristram Wilkinson
President of EMEA Consumer Business2.17yrsno data0.0024%
$ 1.1m
Alison Lewis
Chief Growth Officer1.25yrsno data0.00054%
$ 249.2k
Gustavo Ghory
Senior VP & Chief Supply Chain Officer0.25yrno datano data
Gustavo Paz
President of Europe6.5yrsUS$3.38mno data

2.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: KMB's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hsu
Chairman & CEO1.75yrsUS$12.03m0.015%
$ 6.8m
Michael White
Independent Director5.08yrsUS$300.00k0.00062%
$ 286.1k
Robert Decherd
Independent Director24.75yrsUS$310.00k0.013%
$ 6.2m
Dunia Shive
Independent Director1.42yrsUS$195.00k0.000010%
$ 4.6k
Claudio Xavier González Laporte
Chairman of Kimberly-Clark De Mexico S A De C Vno dataUS$53.56kno data
Mae Jemison
Independent Director18.08yrsUS$280.00k0%
$ 0
Mark Smucker
Independent Director1.08yrsUS$110.00k0%
$ 0
Abelardo Bru
Independent Director15.08yrsUS$310.00k0%
$ 0
Ian Read
Lead Independent Director3.42yrsUS$320.00k0.00021%
$ 96.9k
Sherilyn S. McCoy
Independent Director2.08yrsUS$280.00k0%
$ 0
Christa Quarles
Independent Director4.33yrsUS$285.00k0%
$ 0
S. MacLan
Independent Director1.42yrsUS$195.00k0%
$ 0

3.4yrs

Average Tenure

63yo

Average Age

Experienced Board: KMB's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$46.153b
  • Shares outstanding: 340.14m
  • 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
KMYXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
KMYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
KMYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0JQZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
KMYETLX (Eurotlx)YesCommon StockITEURJan 1968
KMBCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
KMB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
KMBBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REP 1ARARSSep 2001
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 and consumer tissue products worldwide. It operates through three segments: Personal Care, Consumer Tissue ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:20
End of Day Share Price2020/10/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.