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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)
Rating:74Outperform
Price Target:―
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.52B
Dividend Yield5.64%
Average Volume (3M)843.00
Price to Earnings (P/E)13.6
Beta (1Y)0.31
Revenue Growth-7.03%
EPS Growth-7.07%
CountryUS
Employees9,513
SectorConsumer Defensive
Sector Strength67
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.15
Shares Outstanding320,147,740
10 Day Avg. Volume0
30 Day Avg. Volume843
Financial Highlights & Ratios
PEG Ratio9.93
Price to Book (P/B)100.12
Price to Sales (P/S)0.00
P/FCF Ratio81.48
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:Apr 24, 2025
(Q1-2025)
| % Change Since: 4.71%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements, such as increased export sales, cost reductions, and strong financial health, alongside challenges like decreased profits and volume growth, higher FX rates, and raw material costs. The entry into the pet food market is a notable strategic development. Despite the challenges, the company's resilience and strategic initiatives indicate a balanced outlook.Q1-2025 Updates
Positive Updates
Increase in Export Sales
Exports were up 21% with double-digit increases in both converted product and hard rolled sales.
Cost Reduction Achievements
The cost reduction program yielded approximately MXN450 million of savings in the quarter, mainly at the cost of goods sold level.
Strong Balance Sheet
Cash position as of March 31st was MXN11.8 billion with a net debt-to-EBITDA ratio of 0.9 times and EBITDA to net interest coverage of 11 times.
Innovation and New Product Launch
Launch of super premium diaper, Huggies Black Label, and improvements in baby wipes. Plans to enter the pet food business in partnership with Grupo Nutec.
Dividend Increase
Shareholders approved a dividend payment of MXN2.04, a 10% increase from last year, and a stock repurchase plan of MXN1,500 million, a 50% increase from last year.
Negative Updates
Decrease in Gross Profit and Operating Profit
Gross profit decreased 9.4% and operating profit decreased 12.5%, with the operating margin at 21.5%.
Challenges with Consumer Demand
Total volume was down 1.3%, with consumer products and away-from-home segments decreasing by 1.4% and 4.2%, respectively.
Negative Impact of FX and Raw Material Costs
The exchange rate was 22% higher, and some expected relief in pulp prices did not materialize, impacting costs.
Muted Volume Growth
Volume growth in some of the most important categories was muted, with even high-growth categories experiencing deceleration.
Company Guidance
During the first quarter of 2025, Kimberly-Clark de Mexico reported sales of MXN13.8 billion, a 0.3% increase compared to the same period last year, despite a 1.3% decrease in total volume and a 1.6% increase in price mix. Consumer products and away-from-home sales declined by 1.4% and 4.2%, respectively, while exports saw a substantial increase of 21%. The company achieved savings of approximately MXN450 million through its cost reduction program, although gross profit decreased by 9.4% with a margin of 38.2%. Operating profit fell by 12.5%, and the EBITDA generated was MXN3.5 billion, representing a 10.9% decrease. The EBITDA margin remained within the long-term target at 25.1%, despite a 22% depreciation of the peso. The company maintained a strong balance sheet with a cash position of MXN11.8 billion and no debt maturing within the next 12 months. The net debt-to-EBITDA ratio stood at 0.9 times, and EBITDA to net interest coverage was at 11 times. Looking forward, the company plans to continue selective price increases and aims for record savings between MXN1.8 billion to MXN2 billion for the year. Additionally, Kimberly-Clark de Mexico announced its entrance into the pet food business, projecting significant growth potential in this sector.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 | |||||
| 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 |
| 21.90B | 22.38B | 20.70B | 16.77B | 15.79B | 18.01B | EBITDA |
| 15.91B | 16.09B | 15.23B | 11.58B | 10.79B | 13.09B | Net Income |
| 7.73B | 7.83B | 7.01B | 4.94B | 4.49B | 6.09B |
| Balance Sheet | Total Assets | ||||
| 48.12B | 52.11B | 53.92B | 53.54B | 48.78B | 53.32B | Cash, Cash Equivalents and Short-Term Investments |
| 11.78B | 15.58B | 16.86B | 16.92B | 12.27B | 17.74B | Total Debt |
| 22.61B | 28.10B | 29.72B | 34.15B | 29.83B | 33.19B | Total Liabilities |
| 45.44B | 44.70B | 47.00B | 48.51B | 43.06B | 47.62B | Stockholders Equity |
| 2.68B | 7.41B | 6.92B | 5.03B | 5.72B | 5.81B |
| Cash Flow | Free Cash Flow | ||||
| 7.04B | 8.10B | 11.08B | 6.18B | 4.65B | 9.52B | Operating Cash Flow |
| 9.47B | 10.60B | 12.76B | 8.32B | 6.80B | 10.33B | Investing Cash Flow |
| -978.98M | -1.30B | -311.39M | -2.15B | -2.14B | -795.28M | Financing Cash Flow |
| -17.71B | -13.50B | -9.83B | -1.32B | -11.07B | 2.02B |
Kimberly-Clark de Mexico SAB de CV Technical Analysis
Positive
8.89
Price Trends
8.73
Positive
8.24
Positive
7.73
Positive
Market Momentum
0.07
Positive
52.08
Neutral
69.85
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 8.89 is below the 20-day moving average (MA) of 8.93, above the 50-day MA of 8.73, and above the 200-day MA of 7.73, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.52B | 13.58 | 247.13% | 5.64% | -7.03% | -7.07% | |
74 Outperform | $372.97B | 25.27 | 30.29% | 2.66% | -0.16% | 2.74% | |
68 Neutral | $42.57B | 17.48 | 229.84% | 3.93% | -3.12% | 34.80% | |
65 Neutral | $23.75B | 41.37 | 13.35% | 1.22% | 2.18% | -26.08% | |
65 Neutral | €15.83B | 12.52 | -4.55% | 3.96% | -1.83% | -144.94% | |
64 Neutral | $71.14B | 24.85 | 977.07% | 2.37% | 0.98% | 12.12% | |
64 Neutral | $14.89B | 21.69 | 1176.27% | 4.04% | -2.64% | 189.29% |
* Consumer Defensive Sector Average
Performance Comparison
KCDMY
Kimberly-Clark de Mexico SAB de CV
8.89
0.49
5.83%
CHD
Church & Dwight
96.95
-6.71
-6.47%
CLX
Clorox
122.30
-7.77
-5.97%
CL
Colgate-Palmolive
88.67
-7.95
-8.23%
KMB
Kimberly Clark
130.13
-3.48
-2.60%
PG
Procter & Gamble
161.03
-1.84
-1.13%
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.