Kimberly-Clark de Mexico SAB de CV (KCDMY) AI Stock Analysis

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Kimberly-Clark de Mexico SAB de CV

(OTC:KCDMY)

Rating:77Outperform

Price Target:

$11.00

▲(11.22% Upside)

Kimberly-Clark de Mexico shows strong technical momentum and reasonable valuation, supporting a solid stock score. Despite high leverage, profitability and cash flow remain strong. Challenges from volume decline and cost pressures were evident in the earnings call, but strategic initiatives offer potential for improvement.

Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.00B

Dividend Yield5.18%

Average Volume (3M)8.47K

Price to Earnings (P/E)16.2

Beta (1Y)0.28

Revenue Growth-11.23%

EPS Growth-17.45%

CountryUS

Employees9,513

SectorConsumer Defensive

Sector Strength67

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.17

Shares Outstanding320,147,740

10 Day Avg. Volume0

30 Day Avg. Volume8,475

Financial Highlights & Ratios

PEG Ratio1.00

Price to Book (P/B)12.56

Price to Sales (P/S)1.70

P/FCF Ratio11.48

Enterprise Value/Market Cap1.02

Enterprise Value/Revenue0.11

Enterprise Value/Gross Profit0.29

Enterprise Value/Ebitda0.40

Forecast

1Y Price Target

$11.00

Price Target Upside11.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Kimberly-Clark de Mexico SAB de CV Business Overview & Revenue Model

Company DescriptionKimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures and commercializes disposable products for daily use by consumers in Mexico. The company offers diapers, pull-up training pants, swim diapers, wet wipes, shampoos, cream and bar soaps, and feeding products for babies; beauty products, including bar soaps, liquid hand soaps, foaming liquid soaps, liquid body washes, micellar water, and makeup removing wipes; and underwear, protectors, feminine pads, and prefolded products for adults. It also provides toilet paper, napkins, facial tissues, and paper towels for home; feminine pads, panty liners, tampons, and intimate wipes for women; and dispensers, jumbo roll toilet papers, paper towels, hand towels, anti-bacterial gel, disinfecting spray, facemasks, and industrial cleaning cloths for professional use. The company offers its products primarily under the Huggies, KleenBebe, Pull-Ups, Evenflo, Kleenex, Kotex, Depend, Cottonelle, Pétalo, Suavel, Vogue, Sanitas, Marli y Kimlark, Jabón Escudo Antibacterial, and Jabones Kleenex brands. The company also exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.

How the Company Makes MoneyKimberly-Clark de Mexico makes money primarily through the sale of its consumer products, which include baby and child care products, adult and feminine care products, and personal care items. The company generates revenue by distributing these products through various retail channels, including supermarkets, pharmacies, and online platforms. Additionally, Kimberly-Clark de Mexico may engage in strategic partnerships and collaborations to enhance its market reach and product offerings. The company's earnings are significantly influenced by consumer demand, brand loyalty, and the effectiveness of its marketing and distribution strategies.

Kimberly-Clark de Mexico SAB de CV Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q2-2025)

% Change Since: 3.45%|

Next Earnings Date:Oct 23, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with record sales and effective cost-saving measures highlighting resilience, but significant challenges in volume decline, cost increases, and a challenging economic environment posed notable concerns. The company's proactive strategies in innovation and export growth offer optimism for future improvements.

Q2-2025 Updates

Positive Updates

Record Quarterly Sales

Sales reached MXN 14.1 billion, marking a 1.7% increase from the first quarter and setting an all-time quarterly record despite being flat compared to the previous year.

Strong Export Growth

Exports increased by 24.5%, with double-digit growth in both converted products and hard roll sales.

Cost Reduction Success

The cost reduction program achieved approximately MXN 500 million in savings, primarily in cost of goods sold through sourcing, materials improvement, and process efficiencies.

Healthy Balance Sheet

The company maintains a strong balance sheet with a cash position of MXN 11 billion, no debt maturing for the rest of the year, and a net debt-to-EBITDA ratio of 1.

Innovation Initiatives

Product improvements in categories like diapers, wipes, and incontinence were introduced, and further innovations are planned in bathroom tissue, incontinence pads, and feminine care.

Negative Updates

Decreased Total Volume

Total volume declined by 3.3%, with Consumer Products and Away from Home segments decreasing by 2.2% and 7.8%, respectively.

Increased Costs

Cost of goods sold rose by 7.2%, with virgin fibers mixed and recycled fibers and fluff comparing negatively. The FX rate increased by 17.3%.

Decline in Gross Profit and EBITDA

Gross profit decreased by 9.7% and the margin was negatively affected by lower-margin hard roll sales. EBITDA decreased by 11.5%, with an operating profit drop of 13.9%.

Economic Slowdown Impact

The challenging economic environment and consumption slowdown resulted in flat top-line growth and muted volume growth, particularly affecting categories like diapers and bathroom tissue.

Professional Business Decline

The Away from Home segment saw a notable decline in sales due to a slowdown in tourism and distributors reducing their inventories.

Company Guidance

During the Kimberly-Clark de México 2Q '25 earnings call, various metrics were discussed to provide guidance on the company's performance and future expectations. The company reported quarterly sales of MXN 14.1 billion, a 1.7% increase from the first quarter, while total volume decreased by 3.3% and price/mix increased by 3.3%. Consumer Products and Away from Home segments saw declines of 2.2% and 7.8%, respectively, whereas exports surged by 24.5%. Cost of goods sold rose by 7.2%, and despite a 9.7% dip in gross profit, the gross margin stood at 38.2%. Operating profit decreased by 13.9%, with an operating margin of 21.7%. EBITDA was MXN 3.6 billion, marking an 11.5% decrease, yet maintaining a margin of 25.4%. The cost of financing for the quarter was MXN 352 million, with a net interest expense of MXN 3,730 million compared to MXN 390 million the previous year. A foreign exchange gain of MXN 21 million was reported, contrasting with a MXN 37 million loss last year. Net income was MXN 1.9 billion, with earnings per share of $0.62. The company's strong cash position was highlighted, with MXN 11 billion in cash as of June 30, and a net debt-to-EBITDA ratio of 1. The EBITDA to net interest coverage ratio was 10x, and shareholder payouts reached 7.5% through share repurchase and dividends. The call also emphasized the strategic reduction in promotional support, which negatively impacted volumes, but was aimed at protecting brand value and setting the stage for healthier volume and pricing in the second half of the year.

Kimberly-Clark de Mexico SAB de CV Financial Statement Overview

Summary

Kimberly-Clark de Mexico SAB de CV demonstrates strong profitability with a gross margin of 40.2% and an EBIT margin of 23.3%. However, revenue growth has slightly declined, and the company faces high leverage with a debt-to-equity ratio of 8.43. Cash flow remains robust, but free cash flow has decreased by 13%.

Income Statement

Positive

The company exhibits strong gross and EBIT margins, with the TTM (Trailing-Twelve-Months) reporting a gross profit margin of approximately 40.2% and an EBIT margin of 23.3%. However, there has been a slight decline in revenue growth, as seen with a decrease from the previous year's annual revenue of 54.78 billion to 54.42 billion in TTM.

Balance Sheet

Positive

The balance sheet shows a high debt-to-equity ratio of 8.43 in TTM, indicating significant leverage. The equity ratio is low at 5.6%, suggesting limited equity buffer. Nonetheless, the company maintains a consistent ROE, reported at 288.1% for TTM, driven largely by high leverage.

Cash Flow

Positive

The firm has a robust operating cash flow with a TTM operating cash flow to net income ratio of 1.23. However, free cash flow has declined from the previous annual period, falling by 13% from 8.1 billion to 7.04 billion, indicating a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.43B	54.78B	53.31B	51.06B	46.89B	46.70B
Gross Profit	21.32B	22.38B	20.70B	16.77B	15.79B	18.01B
EBITDA	15.35B	16.09B	15.23B	11.58B	10.79B	13.09B
Net Income	7.46B	7.83B	7.01B	4.94B	4.49B	6.09B
Balance Sheet
Total Assets	47.78B	52.11B	53.92B	53.54B	48.78B	53.32B
Cash, Cash Equivalents and Short-Term Investments	10.95B	15.58B	16.86B	16.92B	12.27B	17.74B
Total Debt	22.02B	28.10B	29.72B	34.15B	29.83B	33.19B
Total Liabilities	43.60B	44.70B	47.00B	48.51B	43.06B	47.62B
Stockholders Equity	4.18B	7.41B	6.92B	5.03B	5.72B	5.81B
Cash Flow
Free Cash Flow	7.32B	8.10B	11.08B	6.18B	4.65B	9.52B
Operating Cash Flow	9.49B	10.60B	12.76B	8.32B	6.80B	10.33B
Investing Cash Flow	-598.89M	-1.30B	-311.39M	-2.15B	-2.14B	-795.28M
Financing Cash Flow	-14.87B	-13.50B	-9.83B	-1.32B	-11.07B	2.02B

Kimberly-Clark de Mexico SAB de CV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.89

Price Trends

50DMA

9.17

Positive

100DMA

8.76

Positive

200DMA

7.92

Positive

Market Momentum

MACD

0.14

Negative

RSI

70.87

Negative

STOCH

100.02

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KCDMY, the sentiment is Positive. The current price of 9.89 is above the 20-day moving average (MA) of 9.48, above the 50-day MA of 9.17, and above the 200-day MA of 7.92, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 70.87 is Negative, neither overbought nor oversold. The STOCH value of 100.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KCDMY.

Kimberly-Clark de Mexico SAB de CV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KCDMY	77 Outperform	$6.00B	16.24	142.03%	5.18%	-11.23%	-17.45%
PG	73 Outperform	$359.58B	23.59	31.23%	2.69%	0.29%	7.86%
CLX	71 Outperform	$15.39B	19.15	249.61%	3.91%	0.16%	191.17%
CHD	64 Neutral	$22.15B	42.88	12.07%	1.27%	1.13%	-34.78%
CL	63 Neutral	$68.45B	23.80	705.21%	2.41%	0.05%	3.55%
KMB	61 Neutral	$45.18B	18.77	196.26%	3.64%	-6.89%	7.52%
Sector *	54 Neutral	C$5.27B	4.16	-2.52%	3.52%	18.95%	8.48%

* Consumer Defensive Sector Average

Performance Comparison

KCDMY

Kimberly-Clark de Mexico SAB de CV

9.89

1.32

15.40%

CHD

Church & Dwight

90.92

-8.75

-8.78%

CLX

Clorox

124.87

-12.38

-9.02%

Colgate-Palmolive

84.69

-14.37

-14.51%

KMB

Kimberly Clark

136.16

2.67

2.00%

Procter & Gamble

153.51

-9.19

-5.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025