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Kimberly-Clark de Mexico SAB de CV (ADR) (KCDMY)
:KCDMY
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Kimberly-Clark de Mexico SAB de CV
(OTC:KCDMY)
Rating:77Outperform
Price Target:
$11.00
â–²(15.91%Upside)
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.74B
Dividend Yield5.25%
Average Volume (3M)17.80K
Price to Earnings (P/E)14.5
Beta (1Y)0.30
Revenue Growth-7.03%
EPS Growth-7.07%
CountryUS
Employees9,513
SectorConsumer Defensive
Sector Strength59
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.17
Shares Outstanding320,147,740
10 Day Avg. Volume0
30 Day Avg. Volume17,795
Financial Highlights & Ratios
PEG Ratio-4.53
Price to Book (P/B)40.31
Price to Sales (P/S)0.00
P/FCF Ratio15.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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: -0.73%|
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 exhibits strong profitability with robust gross and EBIT margins. However, the decline in revenue growth and high leverage, as indicated by a high debt-to-equity ratio, pose potential risks. Cash flow remains strong but shows a decline in free cash flow, necessitating careful management.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.78
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.62
Positive
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.74
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 54.78B | 53.31B | 51.06B | 46.89B | 46.70B |
| Gross Profit | 22.38B | 20.70B | 16.77B | 15.79B | 18.01B |
| EBITDA | 16.09B | 15.23B | 11.58B | 10.79B | 13.09B |
| Net Income | 7.83B | 7.01B | 4.94B | 4.49B | 6.09B |
Balance Sheet | |||||
| Total Assets | 52.11B | 53.92B | 53.54B | 48.78B | 53.32B |
| Cash, Cash Equivalents and Short-Term Investments | 15.58B | 16.86B | 16.92B | 12.27B | 17.74B |
| Total Debt | 28.10B | 29.72B | 34.15B | 29.83B | 33.19B |
| Total Liabilities | 44.70B | 47.00B | 48.51B | 43.06B | 47.62B |
| Stockholders Equity | 7.41B | 6.92B | 5.03B | 5.72B | 5.81B |
Cash Flow | |||||
| Free Cash Flow | 8.10B | 11.08B | 6.18B | 4.65B | 9.52B |
| Operating Cash Flow | 10.60B | 12.76B | 8.32B | 6.80B | 10.33B |
| Investing Cash Flow | -1.30B | -311.39M | -2.15B | -2.14B | -795.28M |
| Financing Cash Flow | -13.50B | -9.83B | -1.32B | -11.07B | 2.02B |
Kimberly-Clark de Mexico SAB de CV Technical Analysis
Positive
9.49
Price Trends
8.98
Positive
8.48
Positive
7.78
Positive
Market Momentum
0.18
Negative
60.74
Neutral
71.64
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 9.49 is above the 20-day moving average (MA) of 9.19, above the 50-day MA of 8.98, and above the 200-day MA of 7.78, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 71.64 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.74B | 14.54 | 247.13% | 5.25% | -7.03% | -7.07% | |
71 Outperform | $15.82B | 23.05 | 1176.27% | 3.80% | -2.64% | 189.29% | |
70 Outperform | $23.79B | 41.45 | 13.35% | 1.22% | 2.18% | -26.08% | |
68 Neutral | $42.32B | 17.38 | 229.84% | 3.95% | -3.12% | 34.80% | |
66 Neutral | $70.38B | 24.59 | 977.07% | 2.40% | 0.98% | 12.12% | |
65 Neutral | $363.64B | 24.63 | 30.29% | 2.73% | -0.16% | 2.74% | |
65 Neutral | $27.01B | 15.34 | -4.26% | 3.22% | 1.00% | 3.39% |
* Consumer Defensive Sector Average
Performance Comparison
KCDMY
Kimberly-Clark de Mexico SAB de CV
9.49
0.59
6.63%
CHD
Church & Dwight
96.60
-2.90
-2.91%
CLX
Clorox
128.37
-0.40
-0.31%
CL
Colgate-Palmolive
86.84
-8.96
-9.35%
KMB
Kimberly Clark
127.53
-11.60
-8.34%
PG
Procter & Gamble
155.10
-9.00
-5.48%
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.