KIMBERLY-CLARK CORP (KMB) Stock Fundamental Analysis
NYSE:KMB - New York Stock Exchange, Inc. - US4943681035 - Common Stock - Currency: USD
KMB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. While KMB has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, KMB is valued expensive at the moment. KMB also has an excellent dividend rating.
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.
KMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KMB (15.12%) is better than 83.33% of its industry peers.
With an excellent Return On Equity value of 223.89%, KMB belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KMB has a better Return On Invested Capital (31.28%) than 91.67% of its industry peers.
KMB had an Average Return On Invested Capital over the past 3 years of 24.55%. This is significantly above the industry average of 15.79%.
The last Return On Invested Capital (31.28%) for KMB is above the 3 year average (24.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | 223.89% | ||
| ROIC | 31.28% |
ROA(3y)12.1%
ROA(5y)11.98%
ROE(3y)283.11%
ROE(5y)315.59%
ROIC(3y)24.55%
ROIC(5y)24.05%
1.3 Margins
KMB has a better Profit Margin (12.48%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of KMB has grown nicely.
KMB's Operating Margin of 18.78% is fine compared to the rest of the industry. KMB outperforms 75.00% of its industry peers.
KMB's Operating Margin has been stable in the last couple of years.
KMB has a Gross Margin (36.45%) which is comparable to the rest of the industry.
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 | 18.78% | ||
| PM (TTM) | 12.48% | ||
| GM | 36.45% |
OM growth 3Y8.75%
OM growth 5Y1.08%
PM growth 3Y10.79%
PM growth 5Y1.65%
GM growth 3Y4.94%
GM growth 5Y0.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KMB is creating value.
The number of shares outstanding for KMB has been reduced compared to 1 year ago.
KMB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KMB has been reduced compared to a year ago.
2.2 Solvency
KMB has an Altman-Z score of 4.49. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
KMB has a Altman-Z score (4.49) which is comparable to the rest of the industry.
KMB has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as KMB would need 3.05 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.05, KMB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
KMB has a Debt/Equity ratio of 5.92. This is a high value indicating a heavy dependency on external financing.
KMB has a worse Debt to Equity ratio (5.92) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.92 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.49 |
ROIC/WACC3.81
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.76 indicates that KMB may have some problems paying its short term obligations.
KMB's Current ratio of 0.76 is on the low side compared to the rest of the industry. KMB is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.49 indicates that KMB may have some problems paying its short term obligations.
The Quick ratio of KMB (0.49) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.49% over the past year.
Measured over the past 5 years, KMB shows a small growth in Earnings Per Share. The EPS has been growing by 1.19% on average per year.
Looking at the last year, KMB shows a decrease in Revenue. The Revenue has decreased by -3.12% in the last year.
KMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)4.49%
EPS 3Y5.65%
EPS 5Y1.19%
EPS Q2Q%-3.98%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-6%
3.2 Future
Based on estimates for the next years, KMB will show a small growth in Earnings Per Share. The EPS will grow by 4.30% on average per year.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y-1.73%
EPS Next 2Y2.69%
EPS Next 3Y4.06%
EPS Next 5Y4.3%
Revenue Next Year-2.44%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.8%
Revenue Next 5Y1.77%
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
Based on the Price/Earnings ratio of 19.62, the valuation of KMB can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as KMB.
When comparing the Price/Earnings ratio of KMB to the average of the S&P500 Index (26.60), we can say KMB is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.40, which indicates a rather expensive current valuation of KMB.
KMB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMB to the average of the S&P500 Index (22.43), we can say KMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
KMB's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
The excellent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)16.45
EPS Next 2Y2.69%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, KMB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.82, KMB pays a better dividend. On top of this KMB pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.47%.
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)3.47%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
66.33% of the earnings are spent on dividend by KMB. This is not a sustainable payout ratio.
KMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.33%
EPS Next 2Y2.69%
EPS Next 3Y4.06%
141.63
+0.84 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners81.35%
Inst Owner Change0.29%
Ins Owners0.14%
Ins Owner Change22.04%
Market Cap47.00B
Analysts66.67
Price Target146.99 (3.78%)
Short Float %1.48%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend4.87
Dividend Growth(5Y)3.47%
DP66.33%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-1.97%
Max EPS beat(2)1.27%
EPS beat(4)3
Avg EPS beat(4)4.73%
Min EPS beat(4)-1.97%
Max EPS beat(4)13.37%
EPS beat(8)6
Avg EPS beat(8)7.1%
EPS beat(12)9
Avg EPS beat(12)6.63%
EPS beat(16)11
Avg EPS beat(16)4.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)0.45%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)0.45%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.49%
PT rev (1m)-1.37%
PT rev (3m)-1.6%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)-11.42%
EPS NY rev (1m)-5.47%
EPS NY rev (3m)-5.48%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 18.4 | ||
| P/S | 2.38 | ||
| P/FCF | 19.65 | ||
| P/OCF | 15.05 | ||
| P/B | 42.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)7.22
EY5.1%
EPS(NY)7.7
Fwd EY5.44%
FCF(TTM)7.21
FCFY5.09%
OCF(TTM)9.41
OCFY6.65%
SpS59.52
BVpS3.32
TBVpS-2.88
PEG (NY)N/A
PEG (5Y)16.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.12% | ||
| ROE | 223.89% | ||
| ROCE | 39.52% | ||
| ROIC | 31.28% | ||
| ROICexc | 33.28% | ||
| ROICexgc | 43.39% | ||
| OM | 18.78% | ||
| PM (TTM) | 12.48% | ||
| GM | 36.45% | ||
| FCFM | 12.11% |
ROA(3y)12.1%
ROA(5y)11.98%
ROE(3y)283.11%
ROE(5y)315.59%
ROIC(3y)24.55%
ROIC(5y)24.05%
ROICexc(3y)26.95%
ROICexc(5y)25.74%
ROICexgc(3y)36.14%
ROICexgc(5y)34.44%
ROCE(3y)31.02%
ROCE(5y)30.39%
ROICexcg growth 3Y18.76%
ROICexcg growth 5Y2.73%
ROICexc growth 3Y18.99%
ROICexc growth 5Y1.29%
OM growth 3Y8.75%
OM growth 5Y1.08%
PM growth 3Y10.79%
PM growth 5Y1.65%
GM growth 3Y4.94%
GM growth 5Y0.87%
F-Score8
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.92 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 89.8% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.05% | ||
| Profit Quality | 97.04% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 4.49 |
F-Score8
WACC8.2%
ROIC/WACC3.81
Cap/Depr(3y)103.41%
Cap/Depr(5y)118.92%
Cap/Sales(3y)3.9%
Cap/Sales(5y)4.64%
Profit Quality(3y)117.38%
Profit Quality(5y)110.78%
High Growth Momentum
Growth
EPS 1Y (TTM)4.49%
EPS 3Y5.65%
EPS 5Y1.19%
EPS Q2Q%-3.98%
EPS Next Y-1.73%
EPS Next 2Y2.69%
EPS Next 3Y4.06%
EPS Next 5Y4.3%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-6%
Revenue Next Year-2.44%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.8%
Revenue Next 5Y1.77%
EBIT growth 1Y19.15%
EBIT growth 3Y9.89%
EBIT growth 5Y2.78%
EBIT Next Year27.59%
EBIT Next 3Y11.68%
EBIT Next 5Y7.64%
FCF growth 1Y3.19%
FCF growth 3Y13.41%
FCF growth 5Y10.48%
OCF growth 1Y-0.6%
OCF growth 3Y5.81%
OCF growth 5Y3.4%