Kimberly Clark (KMB) AI Stock Analysis

• Market Cap: $44.82B
• Dividend Yield: 3.64%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.23
• Revenue Growth: -1.83%
• EPS Growth: 45.13%
• Country: US
• Employees: 38,000
• Sector: Consumer Defensive
• Sector Strength: 86
• Industry: Household & Personal Products
• EPS (TTM): 7.55
• Shares Outstanding: 331,651,700
• 10 Day Avg. Volume: 2,057,158
• 30 Day Avg. Volume: 2,244,685
• PEG Ratio: 0.40
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.29
• Price to Cash Flow (P/CF): 14.10
• P/FCF Ratio: 14.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $146.83
• Price Target Upside: 6.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

Kimberly Clark's overall score reflects strong cash flow and strategic initiatives yielding market share gains and productivity savings. However, the zero net income for 2024 and high leverage pose risks. Technical indicators show positive momentum but caution about overbought conditions. The valuation is reasonable with an attractive dividend yield.

Positive Factors

Financial Performance

Kimberly-Clark's gross margin has increased by 570 basis points since 2022, indicating a positive start to their supply chain productivity targets.

Market Share

All segments (North America, International Personal Care, and International Family Care & Professional) reported positive organic sales and volume growth.

Productivity and Efficiency

Productivity improvements and savings initiatives are expected to ensure continued margin expansion.

Negative Factors

Consumer Spending

There is acknowledgment of a softer consumer spending environment in the US, which could impact future growth.

Currency Impact

Earnings are expected to be pressured by worsening foreign exchange headwinds, with EPS projected to take a 350–400 basis point hit from currency translation.

Revenue Growth

Limited organic revenue growth remains a key concern, with an uncertain outlook for top-line growth due to a moderate recovery in volume trends and tapering benefits of pricing increases.

Kimberly Clark Business Overview & Revenue Model

Company Description

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment offers disposable diapers, swimpants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names. The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names. The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. The company sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to manufacturing, lodging, office building, food service, and public facilities, as well as through distributors and e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.

How the Company Makes Money

Kimberly-Clark makes money through the sale of its personal care and consumer tissue products. The company's revenue model is centered on generating sales from branded products that hold significant market share across different regions globally. Personal care products include diapers, baby wipes, feminine care products, and incontinence care products. Consumer tissue products encompass facial and bathroom tissues, paper towels, and napkins. The K-C Professional segment provides hygiene and safety products for workplaces. Key revenue streams for Kimberly-Clark include retail partners, e-commerce platforms, and direct sales to institutions and businesses. The company also leverages strategic partnerships and continuous innovation in product development to maintain competitive advantages and foster customer loyalty, which are significant factors contributing to its earnings.

Kimberly Clark Financial Statement Overview

Summary

Kimberly Clark exhibits stable revenue and operational efficiency, but the zero net income for 2024 is a concern. The high leverage in the balance sheet presents financial risks, though strong cash flow generation supports resilience.

Income Statement

Kimberly Clark's income statement shows stability with modest revenue growth over the years. The gross profit margin for 2024 is approximately 35.8%, indicating strong production efficiency. However, the net income for 2024 is reported as zero, which is a concern for profitability. The EBIT and EBITDA margins are robust at around 16% for 2024, reflecting good operational performance despite the net income setback.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, with debt levels significantly exceeding equity, indicating a leveraged financial position. The equity ratio is low at approximately 5% in 2024, highlighting limited shareholder equity against total assets. Return on equity metrics are not calculable for 2024 due to zero net income, but past years show moderate returns in a challenging leverage environment.

Cash Flow

Cash flow analysis indicates strong free cash flow in 2024, maintaining stability despite operating cash flow reduction from the previous year. The operating cash flow to net income ratio is high historically, although not calculable for 2024 due to zero net income. The free cash flow to net income ratio is positive, showing robust cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.06B	20.43B	20.18B	19.44B	19.14B
	Gross Profit
7.18B	7.03B	6.22B	5.99B	6.82B
	EBIT
3.21B	2.34B	2.68B	2.56B	3.24B
	EBITDA
3.98B	3.07B	3.38B	3.25B	3.98B
	Net Income Common Stockholders
2.54B	1.76B	1.93B	1.81B	2.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02B	1.09B	427.00M	270.00M	303.00M
	Total Assets
16.55B	17.34B	17.97B	17.84B	17.52B
	Total Debt
7.57B	8.11B	8.42B	8.57B	8.36B
	Net Debt
6.55B	7.02B	8.00B	8.30B	8.06B
	Total Liabilities
15.57B	16.28B	17.27B	17.10B	16.65B
	Stockholders Equity
840.00M	915.00M	547.00M	514.00M	626.00M
Cash Flow		Free Cash Flow
2.51B	2.78B	1.86B	1.72B	2.51B
	Operating Cash Flow
3.23B	3.54B	2.73B	2.73B	3.73B
	Investing Cash Flow
-100.00M	-418.00M	-785.00M	-1.06B	-2.31B
	Financing Cash Flow
-3.17B	-2.37B	-1.76B	-1.70B	-1.57B

Kimberly Clark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMB, the sentiment is Positive. The current price of 137.49 is below the 20-day moving average (MA) of 139.20, above the 50-day MA of 137.39, and above the 200-day MA of 135.68, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMB.

Kimberly Clark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CL	79 Outperform	$73.18B	25.71	704.02%	2.22%	3.30%	26.83%
PG	78 Outperform	$380.62B	25.86	31.05%	2.48%	0.49%	5.02%
UL	76 Outperform	$144.64B	23.84	30.53%	3.12%	1.99%	-10.59%
CHD	74 Outperform	$25.08B	42.99	14.25%	1.12%	4.08%	-22.34%
KMB	71 Outperform	$44.82B	17.90	290.03%	3.64%	-1.83%	45.13%
CLX	66 Neutral	$17.22B	38.21	7616.67%	3.48%	-1.98%	474.83%
Sector *	63 Neutral	$20.41B	13.98	-16.01%	3.26%	1.30%	5.01%

Kimberly Clark Corporate Events

Kimberly Clark Appoints New VP and Controller

On January 28, 2025, Kimberly-Clark announced that Andrew Scribner will be elected as Vice President and Controller, effective June 1, 2025, succeeding Andrew S. Drexler, who will retire on June 6, 2025. Mr. Scribner, who has been CFO of Kimberly-Clark North America since January 2023, brings extensive experience from his previous roles at Gap, Inc. and Kraft Heinz, which may strengthen Kimberly-Clark’s financial leadership.