KMB

Kimberly-ClarkNYSE:KMB Stock Report

Market Cap

US$45.8b

7D

-1.4%

1Y

-7.3%

Updated

16 Sep, 2021

Data

Company Financials +
KMB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends5/6

KMB Overview

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

Kimberly-Clark Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kimberly-Clark
Historical stock prices
Current Share PriceUS$135.94
52 Week HighUS$128.02
52 Week LowUS$155.45
Beta0.55
1 Month Change-2.36%
3 Month Change5.63%
1 Year Change-7.28%
3 Year Change16.42%
5 Year Change6.85%
Change since IPO626.22%

Recent News & Updates

Aug 28
We Think Kimberly-Clark (NYSE:KMB) Is Taking Some Risk With Its Debt

We Think Kimberly-Clark (NYSE:KMB) Is Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 27

Kimberly-Clark: A Solid Long-Term Company, But You Need Some Positive Signal Before Buying

Kimberly-Clark is a natural choice for long-term investors looking for a solid company with rising dividend as it is a member of the dividend aristocrats club. Latest company’s results were weaker than expected, signaling that short-term outlook is clouded with a lot of uncertainties. Despite the uncertain short-term outlook, we think that Kimberly-Clark remains attractive. However, to buy the stock, we need to see an improvement of marginality, some positive earnings surprise, a major M&A announcement or a further decline from current level.

Aug 13
The Returns At Kimberly-Clark (NYSE:KMB) Aren't Growing

The Returns At Kimberly-Clark (NYSE:KMB) Aren't Growing

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

KMBUS Household ProductsUS Market
7D-1.4%-0.2%-0.6%
1Y-7.3%2.1%33.6%

Return vs Industry: KMB underperformed the US Household Products industry which returned 2.9% over the past year.

Return vs Market: KMB underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is KMB's price volatile compared to industry and market?
KMB volatility
KMB Beta0.55
Industry Beta0.46
Market Beta1

Stable Share Price: KMB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: KMB's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187246,000Mike Hsuhttps://www.kimberly-clark.com

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, 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, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names.

Kimberly-Clark Fundamentals Summary

How do Kimberly-Clark's earnings and revenue compare to its market cap?
KMB fundamental statistics
Market CapUS$45.78b
Earnings (TTM)US$2.00b
Revenue (TTM)US$18.98b

22.9x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KMB income statement (TTM)
RevenueUS$18.98b
Cost of RevenueUS$12.46b
Gross ProfitUS$6.53b
ExpensesUS$4.53b
EarningsUS$2.00b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)5.90
Gross Margin34.38%
Net Profit Margin10.53%
Debt/Equity Ratio1,202.1%

How did KMB perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

75%

Payout Ratio

Valuation

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

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMB ($135.94) is trading below our estimate of fair value ($191.99)

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


Price To Earnings Ratio

PE vs Industry: KMB is poor value based on its PE Ratio (22.9x) compared to the US Household Products industry average (22.6x).

PE vs Market: KMB is poor value based on its PE Ratio (22.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: KMB is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: KMB is overvalued based on its PB Ratio (87.4x) compared to the US Household Products industry average (4.8x).


Future Growth

How is Kimberly-Clark forecast to perform in the next 1 to 3 years based on estimates from 16 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 (6.9% per year) is above the savings rate (2%).

Earnings vs Market: KMB's earnings (6.9% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: KMB's revenue (2.7% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: KMB's revenue (2.7% 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 (177.8%).


Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMB has high quality earnings.

Growing Profit Margin: KMB's current net profit margins (10.5%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: KMB's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: KMB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KMB had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Household Products industry average (11.7%).


Return on Equity

High ROE: Whilst KMB's Return on Equity (268.21%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Kimberly-Clark's financial position?


Financial Position Analysis

Short Term Liabilities: KMB's short term assets ($5.6B) do not cover its short term liabilities ($7.2B).

Long Term Liabilities: KMB's short term assets ($5.6B) do not cover its long term liabilities ($9.8B).


Debt to Equity History and Analysis

Debt Level: KMB's debt to equity ratio (1202.1%) is considered high.

Reducing Debt: KMB's debt to equity ratio has reduced from 1819.7% to 1202.1% over the past 5 years.

Debt Coverage: KMB's debt is well covered by operating cash flow (25.6%).

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


Balance Sheet


Dividend

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

3.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KMB's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: KMB's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 (75%), 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 (61.4% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mike Hsu (57 yo)

2.67yrs

Tenure

US$13,465,320

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 ($USD13.47M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KMB's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: KMB's board of directors are considered experienced (3 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 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$45.779b
  • Shares outstanding: 336.76m
  • Website: https://www.kimberly-clark.com

Number of Employees


Location

  • Kimberly-Clark Corporation
  • PO Box 619100
  • Dallas
  • Texas
  • 75261-9100
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.