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. KMB scores excellent on profitability, but there are some minor concerns on its financial health. KMB has a decent growth rate and is not valued too expensively. KMB also has an excellent dividend rating.
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.
KMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.17%, KMB is in line with its industry, outperforming 58.33% of the companies in the same industry.
KMB's Return On Equity of 192.79% is amongst the best of the industry. KMB outperforms 91.67% of its industry peers.
KMB has a better Return On Invested Capital (22.55%) than 91.67% of its industry peers.
KMB had an Average Return On Invested Capital over the past 3 years of 20.65%. This is significantly above the industry average of 13.81%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(22.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.17% | ||
| ROE | 192.79% | ||
| ROIC | 22.55% |
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
KMB has a Profit Margin (8.63%) which is comparable to the rest of the industry.
KMB's Profit Margin has improved in the last couple of years.
KMB's Operating Margin of 14.69% is fine compared to the rest of the industry. KMB outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of KMB has declined.
KMB has a Gross Margin of 34.42%. This is comparable to the rest of the industry: KMB outperforms 50.00% of its industry peers.
KMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.69% | ||
| PM (TTM) | 8.63% | ||
| GM | 34.42% |
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.
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
An Altman-Z score of 3.89 indicates that KMB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.89, KMB is in line with its industry, outperforming 58.33% of the companies in the same industry.
KMB has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as KMB would need 2.89 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.89, KMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 8.13 is on the high side and indicates that KMB has dependencies on debt financing.
KMB has a worse Debt to Equity ratio (8.13) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.13 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 3.89 |
ROIC/WACC2.77
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.82 indicates that KMB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, KMB is doing worse than 83.33% of the companies in the same industry.
KMB has a Quick Ratio of 0.82. 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 worse Quick ratio (0.54) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
KMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.70%, which is quite good.
Measured over the past years, KMB shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.12% on average per year.
KMB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.27%.
KMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.02% yearly.
EPS 1Y (TTM)16.7%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS growth Q2Q-1.95%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Revenue growth Q2Q0.12%
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 6.61% on average per year.
Based on estimates for the next years, KMB will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
EPS Next Y5.93%
EPS Next 2Y6.63%
EPS Next 3Y6.33%
EPS Next 5Y6.61%
Revenue Next Year0.08%
Revenue Next 2Y1.32%
Revenue Next 3Y1.83%
Revenue Next 5Y2.77%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.14, the valuation of KMB can be described as rather expensive.
KMB's Price/Earnings ratio is a bit cheaper when compared to the industry. KMB is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.80. KMB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.07, which indicates a rather expensive current valuation of KMB.
KMB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, KMB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
KMB's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 15.26 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)3.23
PEG (5Y)N/A
EPS Next 2Y6.63%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
KMB has a Yearly Dividend Yield of 3.87%.
Compared to an average industry Dividend Yield of 2.59, KMB pays a better dividend. On top of this KMB pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of KMB has a limited annual growth rate of 3.39%.
KMB has been paying a dividend for at least 10 years, so it has 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 Years18
Div Non Decr Years18
5.3 Sustainability
90.02% of the earnings are spent on dividend by KMB. This is not a sustainable payout ratio.
The dividend of KMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP90.02%
EPS Next 2Y6.63%
EPS Next 3Y6.33%
KIMBERLY-CLARK CORP
NYSE:KMB (4/19/2024, 8:56:08 AM)
125.735
+0.13 (+0.1%)
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 Cap42.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)
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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 | 19.14 | ||
| Fwd PE | 18.07 | ||
| 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)3.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.17% | ||
| ROE | 192.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.69% | ||
| PM (TTM) | 8.63% | ||
| GM | 34.42% | ||
| 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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.54 | ||
| 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)
Growth
EPS 1Y (TTM)16.7%
EPS 3Y-5.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.27%
Revenue growth 3Y2.2%
Revenue growth 5Y
Revenue growth 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