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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
â–²(4.17% Upside)
Kimberly-Clark de Mexico SAB de CV's overall stock score reflects stable financial performance and a strong dividend yield, which are significant strengths. However, technical indicators suggest the stock may be overbought, and the earnings call highlighted challenges such as volume decline and increased costs. These factors contribute to a moderate overall score.
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.24B
Dividend Yield5.12%
Average Volume (3M)38.44K
Price to Earnings (P/E)16.7
Beta (1Y)0.27
Revenue Growth-11.23%
EPS Growth-17.45%
CountryUS
Employees9,513
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.17
Shares Outstanding320,147,740
10 Day Avg. Volume18,304
30 Day Avg. Volume38,436
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 Cap0.98
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.29
Enterprise Value/Ebitda0.40
Forecast
1Y Price Target
$10.50Price Target Upside4.17% Upside
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:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record sales, strong export growth, and effective cost management. However, these were counterbalanced by declines in gross and operating profits, volume decreases in key segments, and challenges posed by the economic environment. Strategic decisions impacted volumes but were made to protect brand value. The company remains optimistic about future growth driven by innovation and strategic initiatives.Q2-2025 Updates
Positive Updates
All-Time Quarterly Sales Record
Sales reached MXN 14.1 billion, a 1.7% increase from the first quarter and an all-time quarterly record despite being flat compared to the previous year.
Strong Export Growth
Exports grew by 24.5% with double-digit increases in both converted products and hard roll sales.
Effective Cost Reduction Program
The cost reduction program yielded MXN 500 million in savings, primarily at the cost of goods sold level.
Healthy Balance Sheet
Cash position as of June 30 was MXN 11 billion with no debt maturing for the rest of the year. Net debt-to-EBITDA ratio is 1, and EBITDA to net interest coverage is 10x.
Successful Product Innovation
Introduced notable innovations in diaper, wipes, and incontinence categories, with plans to continue strengthening offerings in other categories.
Negative Updates
Decline in Gross Profit and Operating Profit
Gross profit decreased by 9.7% and operating profit decreased by 13.9%, with the operating margin at 21.7%.
Volume Decrease in Key Segments
Total volume was down 3.3% with Consumer Products and Away from Home segments decreasing by 2.2% and 7.8%, respectively.
Increased Cost of Goods Sold
Cost of goods sold increased by 7.2% due to unfavorable recycled fibers and fluff costs, and a significant 17.3% higher FX rate.
Challenging Economic Environment
Faced with a slowdown in private consumption and an economic slowdown impacting volume growth in key categories.
Impact of Strategic Decisions on Volumes
Intentional reduction in support during the promotional season had a negative effect on volumes but was intended to protect brand value.
Company Guidance
In the second quarter of 2025, Kimberly-Clark de México reported sales of MXN 14.1 billion, marking a 1.7% increase from the first quarter and achieving an all-time quarterly record. However, total volume was down by 3.3%, offset by a 3.3% increase in price/mix. The company's exports grew significantly by 24.5%, while sales in Consumer Products and Away from Home segments fell by 2.2% and 7.8%, respectively. The cost of goods sold rose by 7.2%, primarily due to unfavorable fluctuations in recycled fibers and fluff, despite savings of MXN 500 million from cost reduction initiatives. Gross profit decreased by 9.7%, with a margin of 38.2%, and operating profit fell by 13.9%, resulting in an operating margin of 21.7%. EBITDA was reported at MXN 3.6 billion, a decrease of 11.5%, yet the EBITDA margin remained within the long-term range at 25.4%. The company ended the quarter with net income of MXN 1.9 billion and earnings per share of $0.62, maintaining a strong balance sheet with a cash position of MXN 11 billion and a net debt-to-EBITDA ratio of 1. The company expects volume growth to improve in the second half, driven by healthier client inventories and strategic innovations, while managing cost pressures from raw materials and currency fluctuations.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
10.08
Price Trends
9.76
Positive
9.36
Positive
8.49
Positive
Market Momentum
0.14
Positive
52.33
Neutral
43.17
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 10.08 is below the 20-day moving average (MA) of 10.11, above the 50-day MA of 9.76, and above the 200-day MA of 8.49, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 43.17 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $143.20B | 23.92 | 28.36% | 3.39% | -0.30% | -14.60% | |
69 Neutral | $21.93B | 42.46 | 12.07% | 1.33% | 1.13% | -34.78% | |
66 Neutral | $6.24B | 16.73 | 142.03% | 5.12% | -11.23% | -17.45% | |
63 Neutral | $63.94B | 22.24 | 705.21% | 2.62% | 0.05% | 3.55% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $14.74B | 18.49 | 249.61% | 4.08% | 0.16% | 191.17% | |
57 Neutral | $40.59B | 16.86 | 196.26% | 4.18% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
KCDMY
Kimberly-Clark de Mexico SAB de CV
10.09
2.56
34.00%
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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.