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Kimberly-Clark de Mexico SAB de CV (KCDMY)
OTHER OTC:KCDMY
US Market
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Kimberly-Clark de Mexico SAB de CV (KCDMY) AI Stock Analysis

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KCDMY

Kimberly-Clark de Mexico SAB de CV

(OTC:KCDMY)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$12.50
â–²(9.94% Upside)
Action:Reiterated
Date:07/27/26
The score is held back primarily by elevated balance-sheet risk despite strong profitability and free cash flow. Offsetting factors include a supportive price trend, attractive income/valuation (P/E ~15.3 and ~5.1% yield), and a generally constructive earnings call with margin discipline and cost-savings momentum, tempered by near-term cost and segment headwinds.
Positive Factors
High and Stable Profitability
Sustained high margins, shown by strong gross and EBITDA margins, reflect durable pricing power, cost control and product mix advantages in tissue and personal-care categories. Persistent operating profitability supports reinvestment, dividend funding and resilience to moderate input cost swings.
Negative Factors
Elevated Leverage
A sharp rise in leverage materially thins the equity cushion and raises refinancing and solvency risk. High debt amplifies earnings volatility and limits strategic flexibility for M&A or buybacks, making balance-sheet repair and interest-cost management priorities over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Profitability
Sustained high margins, shown by strong gross and EBITDA margins, reflect durable pricing power, cost control and product mix advantages in tissue and personal-care categories. Persistent operating profitability supports reinvestment, dividend funding and resilience to moderate input cost swings.
Read all positive factors

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

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

Company Description
Kimberly-Clark de México, S. A. B. de C. V., through its subsidiaries, manufactures and distributes a wide array of disposable consumer goods for everyday use across Mexico. The company's diverse product offering spans several categories: infant c...
How the Company Makes Money
Kimberly-Clark de México makes money primarily by selling branded and/or packaged hygiene and tissue products to retailers, wholesalers, and other distributors that then sell to end consumers. Its core revenue streams are tied to recurring, high-f...

Kimberly-Clark de Mexico SAB de CV Earnings Call Summary

Earnings Call Date:Jul 21, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call reported multiple clear positives: a record quarter of revenue, volume-driven consumer-products growth, strong margin and profitability expansion, meaningful structural cost savings (MXN 450 million), and solid balance-sheet metrics (cash MXN 19.6 billion; net debt/EBITDA 0.9x). Management also highlighted strategic progress (innovation pipeline, private-label traction, potential Kenvue transaction) and reiterated margin discipline. Offsetting these positives were several near-term headwinds: a weak Away from Home segment (-5.1%), exports decline (-11.1%), rising SG&A (+11.5%), and expected near-term raw-material/derivative cost pressures and higher financing costs. Management expects Q3 to be more challenging on costs and pricing but anticipates margins to remain within target range and improvement into Q4 as input costs normalize. Overall, the positive operational performance, structural savings, and strong liquidity/leverage metrics outweigh the near-term challenges, while management has clear plans to address the headwinds.
Positive Updates
Record Quarterly Revenue and Volume Growth
Net sales of MXN 14.4 billion, a 2.7% increase YoY and an all-time high; total volume up 3.1% while price/mix was flat.
Negative Updates
Away from Home Weakness
Away from Home sales decreased 5.1% YoY; pricing was pressured by intensified competition and distributor inventory/timing effects (World Cup-related consumption expectations did not materialize), with recovery expected later in H2.
Read all updates
Q2-2026 Updates
Negative
Record Quarterly Revenue and Volume Growth
Net sales of MXN 14.4 billion, a 2.7% increase YoY and an all-time high; total volume up 3.1% while price/mix was flat.
Read all positive updates
Company Guidance
Management guided that consumer products should continue to lead growth while Away‑from‑Home is expected to return to growth in H2 and parent‑roll sales will be lower but become less of a drag as the year progresses, supporting stronger revenue growth; they warned raw‑material fundamentals point to lower dollar prices versus last year but oil‑derivative costs will be higher sequentially and year‑over‑year with normalization expected by year‑end, and they will accelerate price realization and operational efficiencies. They reiterated they expect to remain within their long‑term EBITDA margin range in Q3 (after Q2 EBITDA of MXN 3.9 billion and a 27.1% margin), likely below the Q2 rate but improving into Q4 and remaining in‑range into 2027 (this was the 13th consecutive quarter in/above range). Other metrics cited to frame guidance include Q2 sales of MXN 14.4 billion (+2.7%), total volume +3.1% (consumer products +5.2% with volume +4.0% and price/mix +1.2%), exports −11.1%, COGS −3%, gross profit +11.9% (gross margin 41.6%), operating profit +12.2% (operating margin 23.7%), SG&A +11.5% (up 140 bps of sales), quarterly cost‑reduction savings of ~MXN 450 million, net income MXN 2.0 billion (EPS MXN 0.68, +9.7%), cash MXN 19.6 billion, net debt/EBITDA 0.9x, EBITDA-to‑net‑interest coverage 9x, and cost of financing MXN 470 million (vs MXN 352 million).

Kimberly-Clark de Mexico SAB de CV Financial Statement Overview

Summary
Operations and cash generation are strong (healthy margins and solid free cash flow conversion), but the balance sheet score is very weak due to sharply higher leverage (debt-to-equity ~12.4x in TTM), which materially increases financial risk and offsets otherwise good fundamentals.
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue56.19B51.94B54.78B53.31B51.06B46.89B
Gross Profit22.74B20.19B22.38B20.70B16.77B15.79B
EBITDA15.13B13.85B16.09B15.23B11.58B10.79B
Net Income7.93B7.11B7.83B7.01B4.94B4.49B
Balance Sheet
Total Assets56.92B45.71B52.11B53.92B53.54B48.78B
Cash, Cash Equivalents and Short-Term Investments19.59B9.68B15.58B16.86B16.92B12.27B
Total Debt32.86B21.36B28.10B29.72B34.15B29.83B
Total Liabilities52.93B38.46B44.70B47.00B48.51B43.06B
Stockholders Equity3.99B7.25B7.41B6.92B5.03B5.72B
Cash Flow
Free Cash Flow8.41B6.09B8.10B11.08B6.18B4.65B
Operating Cash Flow10.09B7.80B10.60B12.76B8.32B6.80B
Investing Cash Flow-1.66B-1.72B-1.30B-311.39M-2.15B-2.14B
Financing Cash Flow618.61M-11.02B-13.50B-9.83B-1.32B-11.07B

Kimberly-Clark de Mexico SAB de CV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$23.41B31.6717.78%1.23%2.69%46.04%
70
Outperform
$137.69B21.4935.40%3.71%-17.45%8.84%
66
Neutral
$6.81B15.17161.39%5.07%12.81%21.01%
64
Neutral
$36.28B17.16143.64%4.63%-16.17%-13.40%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
61
Neutral
$73.06B35.89631.14%2.31%5.24%-29.04%
58
Neutral
$11.55B15.46-1893.55%5.19%-3.69%10.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KCDMY
Kimberly-Clark de Mexico SAB de CV
11.88
2.46
26.13%
CHD
Church & Dwight
103.24
13.49
15.04%
CLX
Clorox
105.15
-14.33
-12.00%
CL
Colgate-Palmolive
93.27
10.65
12.89%
KMB
Kimberly Clark
109.68
-20.12
-15.50%
UL
Unilever
62.96
0.26
0.41%
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 27, 2026