KIMBERLY-CLARK CORP (KMB)
US4943681035 - Common Stock
Taking everything into account, KMB scores 5 out of 10 in our fundamental rating. KMB was compared to 12 industry peers in the Household Products industry. While KMB has a great profitability rating, there are some minor concerns on its financial health. KMB is quite expensive at the moment. It does show a decent growth rate. Finally KMB also has an excellent dividend rating. These ratings could make KMB a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
KMB had positive earnings in the past year.
In the past year KMB had a positive cash flow from operations.
In the past 5 years KMB has always been profitable.
In the past 5 years KMB always reported a positive cash flow from operatings.
1.2 Ratios
KMB has a better Return On Assets (13.23%) than 66.67% of its industry peers.
KMB has a better Return On Equity (201.32%) than 83.33% of its industry peers.
KMB has a better Return On Invested Capital (24.27%) than 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 14.40%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(24.27%), indicating increased profibility in the last year.
| 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 Profit Margin value of 11.28%, KMB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of KMB has grown nicely.
KMB has a Operating Margin of 15.71%. This is in the better half of the industry: KMB outperforms 66.67% of its industry peers.
KMB's Operating Margin has declined in the last couple of years.
KMB has a Gross Margin (36.20%) which is in line with its industry peers.
KMB's Gross Margin has been stable in the last couple of years.
| 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.
KMB has less shares outstanding than it did 1 year ago.
KMB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KMB has an improved debt to assets ratio.
2.2 Solvency
KMB has an Altman-Z score of 4.18. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.18, KMB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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 75.00% of its industry peers.
KMB has a Debt/Equity ratio of 6.32. This is a high value indicating a heavy dependency on external financing.
KMB has a worse Debt to Equity ratio (6.32) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.32 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 4.18 |
ROIC/WACC3.05
WACC7.97%
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.
Looking at the Current ratio, with a value of 0.85, KMB is doing worse than 83.33% of the companies in the same industry.
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.
KMB has a Quick ratio of 0.58. This is in the lower half of the industry: KMB underperforms 75.00% of its industry peers.
| 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.
KMB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.12% yearly.
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 Y9.57%
EPS Next 2Y7.98%
EPS Next 3Y7.05%
EPS Next 5Y6.21%
Revenue Next Year-0.2%
Revenue Next 2Y0.72%
Revenue Next 3Y1.44%
Revenue Next 5Y1.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.64, which indicates a rather expensive current valuation of KMB.
Compared to the rest of the industry, the Price/Earnings ratio of KMB is on the same level as its industry peers.
KMB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.51, which indicates a rather expensive current valuation of KMB.
KMB's Price/Forward Earnings ratio is in line with the industry average.
KMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, KMB is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 13.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMB does not grow enough to justify the current Price/Earnings ratio.
KMB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)N/A
EPS Next 2Y7.98%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
KMB's Dividend Yield is rather good when compared to the industry average which is at 2.52. KMB pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, KMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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.
The dividend of KMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.27%
EPS Next 2Y7.98%
EPS Next 3Y7.05%
KIMBERLY-CLARK CORP
NYSE:KMB (7/26/2024, 5:30:00 PM)
After market: 141.81 0 (0%)141.81
+0.74 (+0.52%)
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 Cap47.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)
Avg EPS beat(4)
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)
Max Revenue beat(4)
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 | 19.64 | ||
| Fwd PE | 18.51 | ||
| 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)2.05
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 Y9.57%
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