KIMBERLY-CLARK CORP (KMB) Stock Fundamental Analysis
NASDAQ:KMB - Nasdaq - US4943681035 - Common Stock - Currency: USD
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 not valued too expensively and it also shows a decent growth rate. Finally 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
With an excellent Return On Assets value of 15.12%, KMB belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KMB has a Return On Equity of 223.89%. This is amongst the best in the industry. KMB outperforms 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 31.28%, KMB belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
KMB had an Average Return On Invested Capital over the past 3 years of 24.55%. This is significantly above the industry average of 15.74%.
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.
KMB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.78%, KMB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of KMB has remained more or less at the same level.
KMB has a Gross Margin (36.45%) which is in line with 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 | 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
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
An Altman-Z score of 4.32 indicates that KMB is not in any danger for bankruptcy at the moment.
KMB has a Altman-Z score (4.32) which is in line with its industry peers.
The Debt to FCF ratio of KMB is 3.05, which is a good value as it means it would take KMB, 3.05 years of fcf income to pay off all of its debts.
KMB has a Debt to FCF ratio (3.05) which is comparable to the rest of the 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 Debt to Equity ratio of 5.92. This is in the lower half of the industry: KMB underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.92 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.32 |
ROIC/WACC3.86
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.76 indicates that KMB may have some problems paying its short term obligations.
With a Current ratio value of 0.76, KMB is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
KMB has a Quick Ratio of 0.76. 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 Quick ratio, with a value of 0.49, KMB is doing worse than 83.33% of the companies in the same industry.
| 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.
KMB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.19% yearly.
KMB shows a decrease in Revenue. In the last year, the revenue decreased by -3.12%.
Measured over the past years, KMB shows a small growth in Revenue. The Revenue has been growing by 1.69% on average per year.
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
KMB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.13% yearly.
KMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.62% yearly.
EPS Next Y-1.77%
EPS Next 2Y2.62%
EPS Next 3Y3.96%
EPS Next 5Y4.13%
Revenue Next Year-2.4%
Revenue Next 2Y-0.09%
Revenue Next 3Y0.8%
Revenue Next 5Y1.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.66, the valuation of KMB can be described as rather expensive.
KMB's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.50. KMB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.59, which indicates a correct valuation of KMB.
The rest of the industry has a similar Price/Forward Earnings ratio as KMB.
KMB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 16.59 |
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.
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 | 17.69 | ||
| EV/EBITDA | 10.84 |
4.3 Compensation for Growth
The excellent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)14.82
EPS Next 2Y2.62%
EPS Next 3Y3.96%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 2.94, KMB pays a better dividend. On top of this KMB pays more dividend than 83.33% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.47%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
KMB pays out 66.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KMB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP66.33%
EPS Next 2Y2.62%
EPS Next 3Y3.96%
127.53
-0.38 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners80.22%
Inst Owner Change-0.48%
Ins Owners0.18%
Ins Owner Change22.28%
Market Cap42.32B
Analysts66.09
Price Target146 (14.48%)
Short Float %1.54%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-0.17%
PT rev (3m)-2.03%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.51%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 16.59 | ||
| P/S | 2.14 | ||
| P/FCF | 17.69 | ||
| P/OCF | 13.55 | ||
| P/B | 38.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.84 |
EPS(TTM)7.22
EY5.66%
EPS(NY)7.69
Fwd EY6.03%
FCF(TTM)7.21
FCFY5.65%
OCF(TTM)9.41
OCFY7.38%
SpS59.52
BVpS3.32
TBVpS-2.88
PEG (NY)N/A
PEG (5Y)14.82
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 | 4.32 |
F-Score8
WACC8.1%
ROIC/WACC3.86
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-1.77%
EPS Next 2Y2.62%
EPS Next 3Y3.96%
EPS Next 5Y4.13%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y1.05%
Revenue growth 5Y1.69%
Sales Q2Q%-6%
Revenue Next Year-2.4%
Revenue Next 2Y-0.09%
Revenue Next 3Y0.8%
Revenue Next 5Y1.62%
EBIT growth 1Y19.15%
EBIT growth 3Y9.89%
EBIT growth 5Y2.78%
EBIT Next Year23.28%
EBIT Next 3Y10.94%
EBIT Next 5Y7.48%
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%