KIMBERLY-CLARK CORP (KMB)

US4943681035 - Common Stock

142  +0.99 (+0.7%)

Fundamental Rating

5

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. KMB is valied quite expensively at the moment, while it does show a decent growth rate.



7

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.
In the past 5 years KMB has always been profitable.
Each year in the past 5 years KMB had a positive operating cash flow.

1.2 Ratios

KMB's Return On Assets of 10.79% is in line compared to the rest of the industry. KMB outperforms 58.33% of its industry peers.
KMB has a better Return On Equity (176.72%) than 83.33% of its industry peers.
KMB has a Return On Invested Capital of 23.84%. This is amongst the best in 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 14.36%.
The last Return On Invested Capital (23.84%) for KMB is above the 3 year average (20.65%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.79%
ROE 176.72%
ROIC 23.84%
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 9.05%, KMB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
KMB's Profit Margin has improved in the last couple of years.
KMB has a Operating Margin of 15.27%. 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.
The Gross Margin of KMB (35.40%) is comparable to the rest of the industry.
KMB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.27%
PM (TTM) 9.05%
GM 35.4%
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%

4

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.
KMB has less shares outstanding than it did 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 4.18 indicates that KMB is not in any danger for 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.
The Debt to FCF ratio of KMB is 3.07, which is a good value as it means it would take KMB, 3.07 years of fcf income to pay off all of its debts.
KMB has a Debt to FCF ratio (3.07) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.88 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 6.88, KMB is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 6.88
Debt/FCF 3.07
Altman-Z 4.18
ROIC/WACC3.02
WACC7.89%

2.3 Liquidity

KMB has a Current Ratio of 0.81. 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's Current ratio of 0.81 is on the low side compared to the rest of the industry. KMB is outperformed by 83.33% of its industry peers.
KMB has a Quick Ratio of 0.81. 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 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.54

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.13% over the past year.
The Earnings Per Share has been decreasing by -0.12% on average over the past years.
KMB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.54%.
Measured over the past years, KMB shows a small growth in Revenue. The Revenue has been growing by 2.02% on average per year.
EPS 1Y (TTM)16.13%
EPS 3Y-5.32%
EPS 5Y-0.12%
EPS Q2Q%20.36%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y2.2%
Revenue growth 5Y2.02%
Sales Q2Q%-0.89%

3.2 Future

The Earnings Per Share is expected to grow by 6.21% on average over the next years.
KMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
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.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.55 indicates a rather expensive valuation of KMB.
The rest of the industry has a similar Price/Earnings ratio as KMB.
KMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.19.
A Price/Forward Earnings ratio of 18.54 indicates a rather expensive valuation of KMB.
KMB's Price/Forward Earnings is on the same level as the industry average.
KMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.63, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.55
Fwd PE 18.54

4.2 Price Multiples

KMB's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KMB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.33
EV/EBITDA 14.14

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.
The decent profitability rating of KMB may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)N/A
EPS Next 2Y7.98%
EPS Next 3Y7.05%

6

5. Dividend

5.1 Amount

KMB has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.55, 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 a higher than the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 3.46%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.39%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

KMB pays out 86.45% 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.
DP86.45%
EPS Next 2Y7.98%
EPS Next 3Y7.05%

KIMBERLY-CLARK CORP

NYSE:KMB (7/16/2024, 2:11:08 PM)

142

+0.99 (+0.7%)

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 Cap47.81B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.46%
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 RankSector Rank
PE 20.55
Fwd PE 18.54
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)2.15
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.79%
ROE 176.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.27%
PM (TTM) 9.05%
GM 35.4%
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 Turnover1.19
Health
Industry RankSector Rank
Debt/Equity 6.88
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.81
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)
High Growth Momentum
Growth
EPS 1Y (TTM)16.13%
EPS 3Y-5.32%
EPS 5Y
EPS Q2Q%
EPS Next Y9.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.54%
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