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Kimberly-Clark de Mexico SAB de CV (KCDMY)
OTHER OTC:KCDMY
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Kimberly-Clark de Mexico SAB de CV
(OTC:KCDMY)
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Rating:66Neutral
Price Target:
$10.50
▲(8.14% Upside)
Kimberly-Clark de Mexico SAB de CV's overall stock score reflects stable financial performance and a fair valuation, supported by a strong dividend yield. However, technical indicators suggest caution, and the earnings call highlighted challenges such as declining exports and increased costs. The company's innovation and cost-saving measures are positive, but economic headwinds remain a concern.
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.03B
Dividend Yield5.26%
Average Volume (3M)39.75K
Price to Earnings (P/E)16.3
Beta (1Y)0.27
Revenue Growth-9.05%
EPS Growth-18.32%
CountryUS
Employees9,513
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.15
Shares Outstanding320,147,740
10 Day Avg. Volume20,894
30 Day Avg. Volume39,748
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 Cap1.01
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.29
Enterprise Value/Ebitda0.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
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 MoneyKCDMY generates revenue through the sale of its wide range of consumer and professional products. The primary revenue streams include the manufacturing and distribution of personal care products such as diapers, feminine hygiene items, and adult care products, as well as tissue products like toilet paper, napkins, and paper towels. The company benefits from strong brand recognition and customer loyalty, which drive consistent sales. In addition, KCDMY engages in partnerships with retailers and wholesalers to enhance its distribution network, ensuring product availability across various channels. The company's strategic focus on innovation and sustainability also contributes to its earnings by meeting evolving consumer preferences and regulatory requirements.
Kimberly-Clark de Mexico SAB de CV Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in sales growth, cost savings, and a strong balance sheet, but faced challenges with declining exports, increased costs, and a cautious consumer environment. The company's innovation efforts and share repurchase program are positive indicators for future growth, yet the current economic conditions pose significant headwinds.Q3-2025 Updates
Positive Updates
Net Sales Growth
Net sales for the quarter were MXN 13.4 billion, a 2% increase compared to last year. Consumer products grew 5%, with 1% volume and 4% price/mix improvements.
Cost Reduction Success
The cost reduction program yielded approximately MXN 500 million in savings, primarily through sourcing, materials improvement, and process efficiencies.
Strong Balance Sheet
Cash position as of September 30 was MXN 11 billion, with no debt maturing for the rest of the year. The net debt-to-EBITDA ratio is 1x, and EBITDA to net interest coverage is 10x.
Share Repurchase Program
Repurchased close to 50 million shares, representing approximately 1.5% of shares outstanding, contributing to a total payout to shareholders of approximately 7%.
Innovation Driving Volume Growth
Innovation in diapers, tissue, and economic products like Vogue has contributed to market share gains and consumer acceptance.
Negative Updates
Exports Decline
Exports were down 15%, impacted by a 32% decrease in hard rolled sales, although finished products grew 7%.
Higher Cost of Goods Sold
Cost of goods sold increased by 3%, reflecting higher raw material prices and unfavorable FX impacts.
Decreased Operating Profit
Operating profit decreased by 4%, with a 3% decrease in EBITDA. The operating margin was 21.3%, and the EBITDA margin was 25%.
Increased Financing Costs
Cost of financing rose to MXN 404 million from MXN 287 million the previous year, with net interest expense higher at MXN 401 million.
Weak Consumer Environment
Consumers are cautious, reflecting increased uncertainty, job growth deceleration, and remittances slowdown, impacting overall economic growth.
Company Guidance
During the third quarter of 2025, Kimberly-Clark de México reported net sales of MXN 13.4 billion, a 2% increase from the previous year, with Consumer Products growing by 5%. However, exports declined by 15% due to a 32% decrease in hard rolled sales, although finished products saw a 7% growth. The cost of goods sold rose 3%, influenced by higher raw material prices and currency hedges. Despite these challenges, the company achieved approximately MXN 500 million in cost savings through sourcing and process efficiencies. Gross profit remained flat, with a margin of 38.7%, while operating profit decreased by 4%, resulting in an operating margin of 21.3%. EBITDA stood at MXN 3.4 billion, a 3% year-over-year decrease, yet within the long-term margin range of 25%. The net income for the quarter was MXN 1.7 billion, translating to earnings per share of MXN 0.56. The company's balance sheet remains strong, with a cash position of MXN 11 billion and a net debt-to-EBITDA ratio of 1x. Looking ahead, the company anticipates improved margins due to favorable raw material prices and a stronger peso, despite a challenging consumer environment.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
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.75
Positive
Balance Sheet
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.60
Neutral
Cash Flow
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.70
Positive
| 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
Positive
9.71
Price Trends
9.83
Negative
9.51
Positive
8.70
Positive
Market Momentum
-0.09
Positive
47.04
Neutral
45.88
Neutral
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 9.71 is below the 20-day moving average (MA) of 9.87, below the 50-day MA of 9.83, and above the 200-day MA of 8.70, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 45.88 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $149.26B | 25.28 | 28.36% | 3.17% | -0.30% | -14.60% | |
| ― | $61.21B | 21.68 | 705.21% | 2.72% | 0.05% | 3.55% | |
| ― | $19.94B | 39.74 | 12.07% | 1.39% | 1.13% | -34.78% | |
| ― | $6.03B | 16.32 | 142.03% | 5.26% | -9.05% | -18.32% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | $13.48B | 17.68 | 249.61% | 4.27% | 0.16% | 191.17% | |
| ― | $38.73B | 16.63 | 196.26% | 4.28% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
KCDMY
Kimberly-Clark de Mexico SAB de CV
9.71
3.00
44.71%
CHD
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KMB
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UL
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Kimberly-Clark de Mexico SAB de CV Corporate Events
Kimberly-Clark de Mexico’s Earnings Call Highlights
Oct 25, 2025
Kimberly-Clark de Mexico’s recent earnings call painted a mixed picture, highlighting both achievements and challenges. The company reported growth in sales and cost savings, maintaining a robust balance sheet. However, it faced declining exports, increased costs, and a cautious consumer environment. The company’s innovation and share repurchase program signal potential for future growth, yet current economic conditions present significant hurdles.
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.