Kimberly-Clark de Mexico SAB de CV (KCDMY) AI Stock Analysis

• Market Cap: $5.89B
• Dividend Yield: 5.11%
• Average Volume (3M): 39.75K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.22
• Revenue Growth: -9.05%
• EPS Growth: -18.32%
• Country: US
• Employees: 9,513
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.15
• Shares Outstanding: 320,147,740
• 10 Day Avg. Volume: 20,894
• 30 Day Avg. Volume: 39,748
• PEG Ratio: 1.00
• Price to Book (P/B): 12.56
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 11.48
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.29
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $10.50 ▲(5.11% Upside)

Kimberly-Clark de Mexico SAB de CV's overall stock score of 66 reflects stable financial performance and a solid dividend yield, which are offset by high leverage and mixed technical indicators. The earnings call highlighted both strengths in cost management and challenges in export declines and consumer caution. The stock's valuation is reasonable, providing a balanced investment opportunity with some risks due to economic headwinds.

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

Company Description

Kimberly-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 Money

KCDMY 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 Financial Statement Overview

Summary

Kimberly-Clark de Mexico SAB de CV demonstrates stable financial performance with consistent revenue growth and strong profitability margins. However, the high debt-to-equity ratio indicates significant leverage, which could be a concern if market conditions worsen. Cash flow generation is solid, supporting the company's operational needs and potential for future investments.

Income Statement

Kimberly-Clark de Mexico SAB de CV shows stable revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 0.5%, although this is a slowdown compared to previous years. The company maintains healthy margins, with a gross profit margin of 39.17% and a net profit margin of 13.71% in the TTM. However, there is a slight decline in profitability margins compared to the previous year, indicating some pressure on profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 5.27 in the TTM, indicating significant leverage, which could pose a risk in volatile markets. Return on equity is strong at 143.61%, suggesting efficient use of equity to generate profits. However, the equity ratio is relatively low, reflecting a higher reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is 0.46, indicating moderate cash generation relative to net income. Free cash flow growth is positive at 3.92% in the TTM, showing improvement in cash generation. The free cash flow to net income ratio is 0.77, suggesting a good conversion of income into cash.

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

• Technical Analysis Sentiment: Positive
• Last Price: 9.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.99 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 9.89, and above the 200-day MA of 8.91, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 79.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UL	73 Outperform	$148.56B	24.90	28.36%	3.46%	-0.30%	-14.60%
CHD	72 Outperform	$20.19B	26.48	18.59%	1.42%	1.45%	42.04%
KCDMY	66 Neutral	$5.89B	15.67	142.03%	5.11%	-9.05%	-18.32%
CL	63 Neutral	$63.53B	22.08	450.35%	2.63%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$34.40B	17.56	136.87%	4.88%	-10.04%	-23.41%
CLX	53 Neutral	$12.35B	15.86	4163.16%	5.00%	-9.35%	123.06%

Kimberly-Clark de Mexico SAB de CV Corporate Events

Kimberly-Clark de Mexico’s Earnings Call Highlights

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.