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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:67Neutral
Price Target:
$11.50
▲(10.15% Upside)
Kimberly-Clark de Mexico's overall stock score reflects a balanced view of its financial performance, technical indicators, and valuation. The company's strong profitability and technical momentum are offset by challenges in revenue growth and high leverage. The earnings call highlights both opportunities and risks, with innovation and cost savings as positives, but economic headwinds remain a concern.
Positive Factors
Innovation Driving Volume Growth
The company's focus on innovation in key product areas is enhancing its competitive position and driving volume growth, which can lead to sustained market share gains and long-term revenue stability.
Cost Reduction Success
Effective cost reduction strategies improve margin sustainability, enhancing profitability and providing financial flexibility to invest in growth initiatives.
Strong Balance Sheet
A strong balance sheet with a healthy cash position and manageable debt levels supports financial stability and enables strategic investments.
Negative Factors
Declining Revenue Growth
A decline in revenue growth indicates challenges in maintaining sales momentum, which could impact long-term business expansion and market competitiveness.
High Leverage
High leverage can strain financial flexibility and increase vulnerability to economic downturns, potentially affecting long-term operational stability.
Exports Decline
A decline in exports can reduce revenue diversification and expose the company to domestic market risks, impacting long-term growth prospects.
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.34B
Dividend Yield4.7%
Average Volume (3M)6.96K
Price to Earnings (P/E)17.9
Beta (1Y)0.22
Revenue Growth-9.05%
EPS Growth-18.32%
CountryUS
Employees9,513
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.15
Shares Outstanding312,725,340
10 Day Avg. Volume0
30 Day Avg. Volume6,964
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 Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kimberly-Clark de Mexico SAB de CV Business Overview & Revenue Model
Company DescriptionKimberly-Clark de Mexico SAB de CV (KCDMY) is a leading manufacturer and marketer of consumer and professional health and hygiene products in Mexico. The company operates within the personal care, consumer tissue, and professional products sectors, offering a range of well-known brands including Huggies, Kleenex, Scott, and Depend. KCDMY focuses on delivering high-quality products that cater to the needs of consumers and institutions, enhancing the quality of life through innovative solutions in health and hygiene.
How the Company Makes MoneyKimberly-Clark de Mexico generates revenue primarily through the sale of its consumer and professional products, which include baby care items, feminine care products, incontinence care products, and various tissue and paper products. The company's revenue model relies on a combination of retail sales through supermarkets, pharmacies, and convenience stores, as well as direct sales to businesses and institutions. Key revenue streams include both domestic sales within Mexico and exports to other markets. Additionally, KCDMY benefits from strong brand recognition and loyalty, which drives repeat purchases. The company also engages in strategic partnerships and collaborations with retailers and distributors to enhance product availability and visibility, further contributing to its earnings.
Kimberly-Clark de Mexico SAB de CV Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in sales growth, cost savings, and a strong balance sheet, but faced challenges with declining exports, increased costs, and a cautious consumer environment. The company's innovation efforts and share repurchase program are positive indicators for future growth, yet the current economic conditions pose significant headwinds.Q3-2025 Updates
Positive Updates
Net Sales Growth
Net sales for the quarter were MXN 13.4 billion, a 2% increase compared to last year. Consumer products grew 5%, with 1% volume and 4% price/mix improvements.
Cost Reduction Success
The cost reduction program yielded approximately MXN 500 million in savings, primarily through sourcing, materials improvement, and process efficiencies.
Strong Balance Sheet
Cash position as of September 30 was MXN 11 billion, with no debt maturing for the rest of the year. The net debt-to-EBITDA ratio is 1x, and EBITDA to net interest coverage is 10x.
Share Repurchase Program
Repurchased close to 50 million shares, representing approximately 1.5% of shares outstanding, contributing to a total payout to shareholders of approximately 7%.
Innovation Driving Volume Growth
Innovation in diapers, tissue, and economic products like Vogue has contributed to market share gains and consumer acceptance.
Negative Updates
Exports Decline
Exports were down 15%, impacted by a 32% decrease in hard rolled sales, although finished products grew 7%.
Higher Cost of Goods Sold
Cost of goods sold increased by 3%, reflecting higher raw material prices and unfavorable FX impacts.
Decreased Operating Profit
Operating profit decreased by 4%, with a 3% decrease in EBITDA. The operating margin was 21.3%, and the EBITDA margin was 25%.
Increased Financing Costs
Cost of financing rose to MXN 404 million from MXN 287 million the previous year, with net interest expense higher at MXN 401 million.
Weak Consumer Environment
Consumers are cautious, reflecting increased uncertainty, job growth deceleration, and remittances slowdown, impacting overall economic growth.
Company Guidance
During the third quarter of 2025, Kimberly-Clark de México reported net sales of MXN 13.4 billion, a 2% increase from the previous year, with Consumer Products growing by 5%. However, exports declined by 15% due to a 32% decrease in hard rolled sales, although finished products saw a 7% growth. The cost of goods sold rose 3%, influenced by higher raw material prices and currency hedges. Despite these challenges, the company achieved approximately MXN 500 million in cost savings through sourcing and process efficiencies. Gross profit remained flat, with a margin of 38.7%, while operating profit decreased by 4%, resulting in an operating margin of 21.3%. EBITDA stood at MXN 3.4 billion, a 3% year-over-year decrease, yet within the long-term margin range of 25%. The net income for the quarter was MXN 1.7 billion, translating to earnings per share of MXN 0.56. The company's balance sheet remains strong, with a cash position of MXN 11 billion and a net debt-to-EBITDA ratio of 1x. Looking ahead, the company anticipates improved margins due to favorable raw material prices and a stronger peso, despite a challenging consumer environment.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.65
Positive
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.55
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.99B | 54.78B | 53.31B | 51.06B | 46.89B | 46.70B |
| Gross Profit | 16.39B | 22.38B | 20.70B | 16.77B | 15.79B | 18.01B |
| EBITDA | 11.75B | 16.09B | 15.23B | 11.58B | 10.79B | 13.09B |
| Net Income | 5.73B | 7.83B | 7.01B | 4.94B | 4.49B | 6.09B |
Balance Sheet | ||||||
| Total Assets | 2.54B | 52.11B | 53.92B | 53.54B | 48.78B | 53.32B |
| Cash, Cash Equivalents and Short-Term Investments | 586.36M | 15.58B | 16.86B | 16.92B | 12.27B | 17.74B |
| Total Debt | 1.32B | 28.10B | 29.72B | 34.15B | 29.83B | 33.19B |
| Total Liabilities | 2.25B | 44.70B | 47.00B | 48.51B | 43.06B | 47.62B |
| Stockholders Equity | 289.75M | 7.41B | 6.92B | 5.03B | 5.72B | 5.81B |
Cash Flow | ||||||
| Free Cash Flow | 5.04B | 8.10B | 11.08B | 6.18B | 4.65B | 9.52B |
| Operating Cash Flow | 6.49B | 10.60B | 12.76B | 8.32B | 6.80B | 10.33B |
| Investing Cash Flow | 124.87M | -1.30B | -311.39M | -2.15B | -2.14B | -795.28M |
| Financing Cash Flow | -12.18B | -13.50B | -9.83B | -1.32B | -11.07B | 2.02B |
Kimberly-Clark de Mexico SAB de CV Technical Analysis
Positive
10.44
Price Trends
10.01
Positive
9.86
Positive
9.18
Positive
Market Momentum
0.20
Negative
59.35
Neutral
93.39
Negative
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 10.44 is below the 20-day moving average (MA) of 10.55, above the 50-day MA of 10.01, and above the 200-day MA of 9.18, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 93.39 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $142.53B | 24.01 | 28.36% | 3.74% | -0.30% | -14.60% | |
72 Outperform | $20.50B | 26.88 | 18.59% | 1.38% | 1.45% | 42.04% | |
67 Neutral | $6.34B | 17.87 | 117.43% | 4.70% | -9.05% | -18.32% | |
63 Neutral | $64.27B | 22.34 | 450.35% | 2.67% | -0.05% | 2.49% | |
63 Neutral | $33.52B | 17.11 | 136.87% | 5.03% | -10.04% | -23.41% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $12.02B | 15.44 | 4163.16% | 5.05% | -9.35% | 123.06% |
* Consumer Defensive Sector Average
KCDMY
Kimberly-Clark de Mexico SAB de CV
10.75
4.01
59.50%
CHD
Church & Dwight
85.39
-17.92
-17.35%
CLX
Clorox
98.53
-57.05
-36.67%
CL
Colgate-Palmolive
79.73
-8.92
-10.06%
KMB
Kimberly Clark
101.00
-24.48
-19.51%
UL
Unilever
66.18
7.39
12.57%
Kimberly-Clark de Mexico SAB de CV Corporate Events
Kimberly-Clark de Mexico’s Earnings Call Highlights
Oct 25, 2025
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.
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.