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Kimberly Clark (KMB)
NYSE:KMB
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Kimberly Clark
(NYSE:KMB)71Outperform
Positive Factors
Cost Productivity
KMB generated an impressive 5.9% cost productivity in 2024 COGS and plans for 5% COGS productivity in 2025, which should help protect EPS in 2025.
Market Share Gains
Kimberly-Clark expects its organic sales growth to exceed the industry average by driving volume- and mix-led organic growth ahead of market trends while gaining market share momentum.
Negative Factors
Currency and Divestiture 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.
Kimberly Clark (KMB) vs. S&P 500 (SPY)
Market Cap
$47.10B
Dividend Yield3.4%
Average Volume (3M)2.26M
Price to Earnings (P/E)18.8
Beta (1Y)0.31
Revenue Growth-1.83%
EPS Growth45.13%
CountryUS
Employees38,000
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)7.55
Shares Outstanding331,684,600
10 Day Avg. Volume2,210,192
30 Day Avg. Volume2,261,183
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)N/A
Price to Sales (P/S)2.35
Price to Cash Flow (P/CF)14.40
P/FCF Ratio14.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$145.50Price Target Upside3.09% Upside
Rating ConsensusHold
Number of Analyst Covering14
Kimberly Clark Business Overview & Revenue Model
Company DescriptionKimberly-Clark Corporation (KMB) is a global leader in the manufacturing and marketing of personal care and consumer tissue products. The company operates primarily in the sectors of personal care, consumer tissue, and K-C Professional, providing essential products that are used by people in over 175 countries. Its core offerings include well-known brands such as Huggies, Kleenex, Scott, Kotex, and Cottonelle, which cater to various consumer needs ranging from baby and child care to adult care, feminine care, and family care.
How the Company Makes MoneyKimberly-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.68
Positive
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.55
Neutral
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.72
Positive
| 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
Positive
141.14
Price Trends
131.87
Positive
133.78
Positive
135.69
Positive
Market Momentum
3.12
Negative
63.91
Neutral
78.56
Neutral
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 141.14 is above the 20-day moving average (MA) of 136.20, above the 50-day MA of 131.87, and above the 200-day MA of 135.69, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 78.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMB.
Kimberly Clark Risk Analysis
Kimberly Clark disclosed 16 risk factors in its most recent earnings report. Kimberly Clark reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kimberly Clark Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $407.63B | 27.70 | 30.25% | 2.29% | 0.49% | 5.02% | |
74 Outperform | $27.35B | 46.91 | 13.42% | 1.03% | 4.08% | -22.34% | |
74 Outperform | $73.99B | 25.98 | 1362.74% | 2.15% | 3.30% | 26.83% | |
73 Outperform | $143.51B | 22.71 | 28.73% | 3.21% | 1.99% | -10.59% | |
71 Outperform | $47.10B | 18.80 | 302.98% | 3.40% | -1.83% | 45.13% | |
65 Neutral | $19.27B | 42.74 | -1114.63% | 3.11% | -1.98% | 474.83% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% |
* Consumer Defensive Sector Average
Performance Comparison
KMB
Kimberly Clark
141.14
21.88
18.35%
CHD
Church & Dwight
110.71
9.90
9.82%
CLX
Clorox
150.77
5.62
3.87%
CL
Colgate-Palmolive
91.06
6.18
7.28%
PG
Procter & Gamble
173.18
17.70
11.38%
UL
Unilever
58.02
10.53
22.17%
Kimberly Clark Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: 7.40% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company that is successfully navigating past challenges through strategic initiatives like the Powering Care strategy, which has resulted in record productivity savings and strong market share gains. However, there are concerns about economic pressures impacting product use frequency in certain regions and muted pricing growth for 2025.Highlights
Record Productivity Savings
Achieved a historical high productivity savings of 5.9% in 2024, with expectations to maintain around 5% in 2025. This productivity is enabling investments and bottom-line growth.
Powering Care Strategy Success
The Powering Care strategy has facilitated a transition to volume plus mix-driven growth, strong market share momentum, and a phase of margin expansion in 2024.
Market Share Gains
Achieved weighted share gains of 10 basis points in 2024, with significant improvements in North America, China, and other key international markets.
Strategic Focus on Key Markets
Continued focus and success in key markets like the US and China, contributing to robust volume growth.
Lowlights
Softness in Certain Markets
Experienced lower frequency of product use due to economic pressures in Latin America and Southeast Asia.
Muted Pricing Growth
Pricing growth is expected to be largely flat in 2025, with only a minimal 30 basis points contribution from hyperinflationary economies.
Impact of Past Discontinuations
Continued impact from past business line exits, including private-label contracts and PPE business.
Company Guidance
During the Kimberly-Clark 4Q 2024 Earnings Call, the company's guidance for 2025 highlighted a focus on volume and mix-driven growth, with muted pricing expected to remain flat across the enterprise. The company anticipates achieving productivity savings of around 5%, slightly below the 5.9% reported in 2024, contributing to an expected gross margin expansion at a slower pace compared to the previous two years. Operating profit margins are projected to grow ahead of gross margins, driven by $200 million in SG&A savings from the Powering Care program. Full-year revenue and profit growth are expected to be evenly distributed between the first and second halves of 2025, with a continued emphasis on innovation-led growth and market share gains.Kimberly Clark Corporate Events
Executive/Board Changes
Kimberly Clark Appoints New VP and Controller
Neutral
Jan 28, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.