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 Analysis

Solid track record established dividend payer.


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

-2.9%

KMB

0.4%

US Household Products

-1.0%

US Market


1 Year Return

18.7%

KMB

23.6%

US Household Products

18.0%

US Market

Return vs Industry: KMB underperformed the US Household Products industry which returned 23.6% over the past year.

Return vs Market: KMB matched the US Market which returned 18% over the past year.


Shareholder returns

KMBIndustryMarket
7 Day-2.9%0.4%-1.0%
30 Day-2.3%1.8%0.6%
90 Day5.9%5.8%7.9%
1 Year22.5%18.7%26.7%23.6%20.4%18.0%
3 Year16.7%5.8%48.4%36.1%48.0%38.5%
5 Year51.3%28.9%74.1%50.0%72.2%53.3%

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?

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMB ($141.35) is trading below our estimate of fair value ($180.42)

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 (22.5x) compared to the Household Products industry average (28.1x).

PE vs Market: KMB is poor value based on its PE Ratio (22.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: KMB is poor value based on its PEG Ratio (2.7x)


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 13 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMB's forecast earnings growth (8.3% per year) is above the savings rate (1.7%).

Earnings vs Market: KMB's earnings (8.3% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: KMB's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KMB's revenue (1.7% 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 (462.7%).


Next Steps

Past Performance

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

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMB has high quality earnings.

Growing Profit Margin: KMB's current net profit margins (11.7%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: KMB's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: KMB's earnings growth over the past year (53%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: KMB earnings growth over the past year (53%) exceeded the Household Products industry -14%.


Return on Equity

High ROE: Whilst KMB's Return on Equity (1132.47%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kimberly-Clark's financial position?


Financial Position Analysis

Short Term Liabilities: KMB's short term assets ($5.1B) do not cover its short term liabilities ($6.9B).

Long Term Liabilities: KMB's short term assets ($5.1B) do not cover its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: KMB's debt to equity ratio (4008.2%) is considered high.

Reducing Debt: KMB's debt to equity ratio has increased from 709% to 4008.2% over the past 5 years.

Debt Coverage: KMB's debt is well covered by operating cash flow (35.2%).

Interest Coverage: KMB's interest payments on its debt are well covered by EBIT (13x 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?

3.03%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: KMB's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KMB's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (65.6%), 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 (58.4% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Mike Hsu (55yo)

1.1yrs

Tenure

US$6,812,918

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 Chairman at Kimberly ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.81M) is below average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hsu
Chairman & CEO1.1yrsUS$6.81m0.012% $5.9m
Maria G. Henry
Senior VP & CFO4.8yrsUS$4.67m0.0056% $2.7m
Kimberly Underhill
President of North America Consumer Business5.8yrsUS$4.06m0.0096% $4.7m
Gustavo Paz
President of Europe5.8yrsUS$3.38mno data
Sujatha Chandrasekaran
Chief Information Officer3.8yrsno datano data
Paul Alexander
Vice President of Investor Relations0yrsno datano data
Jeffrey Melucci
Senior VP & General Counsel2.4yrsno data0.0022% $1.0m
Giuseppina Buonfantino
Chief Marketing Officer1.8yrsno datano data
John Boston
Senior VP & Chief Human Resource Officer3.1yrsno data0.0035% $1.7m
Cristina Garcia-Cervigon
Regional Managing Director of Austral4.8yrsno datano data

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: KMB's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hsu
Chairman & CEO1.1yrsUS$6.81m0.012% $5.9m
Michael White
Independent Director4.4yrsUS$300.00k0.0022% $1.1m
Robert Decherd
Independent Director24.1yrsUS$280.00k0.026% $12.7m
Marc J. Shapiro
Independent Director19.1yrsUS$280.00k0.019% $9.3m
Claudio Xavier González Laporte
Chairman of Kimberly-Clark De Mexico S A De C V0yrsUS$53.56kno data
Nancy Karch
Independent Director9.7yrsUS$310.00kno data
Mae Jemison
Independent Director17.4yrsUS$280.00k0.012% $5.7m
Abelardo Bru
Independent Director14.4yrsUS$300.00k0.010% $4.9m
Ian Read
Lead Director2.8yrsUS$320.00k0.0084% $4.1m
Christa Quarles
Independent Director3.7yrsUS$282.50k0.0012% $568.5k

9.7yrs

Average Tenure

67yo

Average Age

Experienced Board: KMB's board of directors are considered experienced (9.7 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$48.593b
  • Shares outstanding: 341.80m
  • 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
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, Consumer Tissue, and K-C Professional. The Personal Care segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise, and other brand names. The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names. The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. The company sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to manufacturing, lodging, office building, food service, and public facilities, as well as through distributors. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:40
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.