KIMBERLY-CLARK CORP (KMB)
US4943681035 - Common Stock
KMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. KMB has an excellent profitability rating, but there are some minor concerns on its financial health. KMB has a correct valuation and a medium growth rate. KMB also has an excellent dividend rating. These ratings would make KMB suitable for dividend investing!
1. Profitability
1.1 Basic Checks
KMB had positive earnings in the past year.
KMB had a positive operating cash flow in the past year.
Each year in the past 5 years KMB has been profitable.
In the past 5 years KMB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 13.23%, KMB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KMB has a better Return On Equity (201.32%) than 91.67% of its industry peers.
KMB's Return On Invested Capital of 24.27% is amongst the best of the industry. KMB outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMB is significantly above the industry average of 14.46%.
The last Return On Invested Capital (24.27%) for KMB is above the 3 year average (20.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.23% | ||
| ROE | 201.32% | ||
| ROIC | 24.27% |
ROA(3y)10.37%
ROA(5y)11.73%
ROE(3y)299.76%
ROE(5y)N/A
ROIC(3y)20.65%
ROIC(5y)23.74%
1.3 Margins
With a decent Profit Margin value of 11.28%, KMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of KMB has grown nicely.
KMB has a better Operating Margin (15.71%) than 66.67% of its industry peers.
KMB's Operating Margin has declined in the last couple of years.
KMB has a Gross Margin of 36.20%. This is comparable to the rest of the industry: KMB outperforms 41.67% of its industry peers.
In the last couple of years the Gross Margin of KMB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.71% | ||
| PM (TTM) | 11.28% | ||
| GM | 36.2% |
OM growth 3Y-9.11%
OM growth 5Y-3.13%
PM growth 3Y-11.1%
PM growth 5Y2.51%
GM growth 3Y-2.42%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
KMB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KMB has been reduced compared to 1 year ago.
The number of shares outstanding for KMB has been reduced compared to 5 years ago.
The debt/assets ratio for KMB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.24 indicates that KMB is not in any danger for bankruptcy at the moment.
The Altman-Z score of KMB (4.24) is better than 66.67% of its industry peers.
KMB has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as KMB would need 2.78 years to pay back of all of its debts.
KMB's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. KMB outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 6.32 is on the high side and indicates that KMB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.32, KMB is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.32 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 4.24 |
ROIC/WACC3.1
WACC7.82%
2.3 Liquidity
KMB has a Current Ratio of 0.85. This is a bad value and indicates that KMB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, KMB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
KMB has a Quick Ratio of 0.85. This is a bad value and indicates that KMB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, KMB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
KMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.34%, which is quite good.
The Earnings Per Share has been decreasing by -0.12% on average over the past years.
The Revenue has decreased by -0.32% in the past year.
The Revenue has been growing slightly by 2.02% on average over the past years.
EPS 1Y (TTM)15.34%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS Q2Q%18.79%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Sales Q2Q%-2.05%
3.2 Future
The Earnings Per Share is expected to grow by 6.21% on average over the next years.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y12.36%
EPS Next 2Y8.35%
EPS Next 3Y7.31%
EPS Next 5Y6.21%
Revenue Next Year-0.93%
Revenue Next 2Y-0.07%
Revenue Next 3Y0.81%
Revenue Next 5Y1.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
KMB is valuated rather expensively with a Price/Earnings ratio of 19.97.
KMB's Price/Earnings ratio is in line with the industry average.
KMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 31.71.
KMB is valuated rather expensively with a Price/Forward Earnings ratio of 18.70.
The rest of the industry has a similar Price/Forward Earnings ratio as KMB.
When comparing the Price/Forward Earnings ratio of KMB to the average of the S&P500 Index (22.81), we can say KMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KMB.
KMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KMB is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KMB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y8.35%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, KMB pays a better dividend. On top of this KMB pays more dividend than 91.67% of the companies listed in the same industry.
KMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.39%.
KMB has paid a dividend for at least 10 years, which is a reliable track record.
KMB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.39%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
KMB pays out 70.27% of its income as dividend. This is not a sustainable payout ratio.
KMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP70.27%
EPS Next 2Y8.35%
EPS Next 3Y7.31%
KIMBERLY-CLARK CORP
NYSE:KMB (10/21/2024, 4:30:12 PM)
After market: 144.5 +0.29 (+0.2%)144.21
-1.2 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap48.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 18.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.23% | ||
| ROE | 201.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.71% | ||
| PM (TTM) | 11.28% | ||
| GM | 36.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.34%
EPS 3Y-5.32%
EPS 5Y
EPS Q2Q%
EPS Next Y12.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y2.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y