KIMBERLY-CLARK CORP (KMB)

US4943681035 - Common Stock

121.23  -0.41 (-0.34%)

After market: 121.23 0 (0%)

Fundamental Rating

5

Overall KMB gets a fundamental rating of 5 out of 10. We evaluated KMB against 12 industry peers in the Household Products industry. While KMB has a great profitability rating, there are quite some concerns on its financial health. KMB is not valued too expensively and it also shows a decent growth rate. KMB also has an excellent dividend rating.



7

1. Profitability

1.1 Basic Checks

In the past year KMB was profitable.
KMB had a positive operating cash flow in the past year.
KMB had positive earnings in each of the past 5 years.
In the past 5 years KMB always reported a positive cash flow from operatings.

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 has a better Return On Equity (192.79%) than 91.67% of its industry peers.
The Return On Invested Capital of KMB (22.55%) is better than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMB is significantly above the industry average of 13.69%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(22.55%), indicating increased profibility in the last year.
Industry RankSector 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

Looking at the Profit Margin, with a value of 8.63%, KMB is in line with its industry, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of KMB has grown nicely.
The Operating Margin of KMB (14.69%) is better than 66.67% of its industry peers.
KMB's Operating Margin has declined in the last couple of years.
KMB has a Gross Margin (34.42%) 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 RankSector 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%

3

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.
The number of shares outstanding for KMB has been reduced compared to 5 years ago.
KMB has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of KMB is 2.89, which is a good value as it means it would take KMB, 2.89 years of fcf income to pay off all of its debts.
KMB has a Debt to FCF ratio of 2.89. This is in the better half of the industry: KMB outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 8.13 is on the high side and indicates that KMB has dependencies on debt financing.
KMB has a Debt to Equity ratio of 8.13. This is in the lower half of the industry: KMB underperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 8.13
Debt/FCF 2.89
Altman-Z N/A
ROIC/WACC2.8
WACC8.06%

2.3 Liquidity

KMB has a Current 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 Current ratio (0.82) than 83.33% of its industry peers.
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.
With a Quick ratio value of 0.54, KMB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.54

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.70% over the past year.
KMB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.12% yearly.
KMB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.27%.
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)16.7%
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

The Earnings Per Share is expected to grow by 6.61% on average over the next years.
The Revenue is expected to grow by 2.77% on average over the next years.
EPS Next Y8.79%
EPS Next 2Y7.37%
EPS Next 3Y6.75%
EPS Next 5Y6.61%
Revenue Next Year-0.09%
Revenue Next 2Y1.15%
Revenue Next 3Y1.67%
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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.45 indicates a rather expensive valuation of KMB.
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.
KMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.81.
With a Price/Forward Earnings ratio of 16.96, KMB is valued correctly.
66.67% of the companies in the same industry are more expensive than KMB, based on the Price/Forward Earnings ratio.
KMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.45
Fwd PE 16.96

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 RankSector Rank
P/FCF 14.76
EV/EBITDA 12.75

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KMB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y6.75%

8

5. Dividend

5.1 Amount

KMB has a Yearly Dividend Yield of 4.03%, which is a nice return.
Compared to an average industry Dividend Yield of 2.52, 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 2.45, KMB pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.03%

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 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 2Y7.37%
EPS Next 3Y6.75%

KIMBERLY-CLARK CORP

NYSE:KMB (2/26/2024, 7:04:00 PM)

After market: 121.23 0 (0%)

121.23

-0.41 (-0.34%)

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 Cap40.97B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.03%
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 18.45
Fwd PE 16.96
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)2.1
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 Y8.79%
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