Kimberly Clark (KMB) AI Stock Analysis

• Market Cap: $34.17B
• Dividend Yield: 4.9%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.17
• Revenue Growth: -10.04%
• EPS Growth: -23.41%
• Country: US
• Employees: 38,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.82
• Shares Outstanding: 331,858,430
• 10 Day Avg. Volume: 5,239,809
• 30 Day Avg. Volume: 7,320,705
• PEG Ratio: 0.38
• Price to Book (P/B): 52.57
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 17.57
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: 14.32
• 1Y Price Target: $128.36
• Price Target Upside: 24.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $112.00 ▲(8.78% Upside)

Kimberly-Clark's overall stock score reflects a mix of strengths and challenges. The company's strong cash flow and attractive dividend yield are key positives, while high leverage and declining profitability margins pose risks. The recent merger agreement with Kenvue and positive earnings call sentiment provide a boost to the outlook. However, technical indicators suggest caution due to the current bearish trend.

Positive Factors

Cash Flow Generation

Strong cash flow growth enhances financial stability and provides resources for strategic investments and debt servicing, supporting long-term growth.

Market Share Gains

Market share gains in key segments like diapers reflect competitive strength and successful innovation strategies, bolstering long-term revenue potential.

Strategic Acquisition

The acquisition of Kenvue is expected to deliver synergies and expand product offerings, enhancing Kimberly-Clark's market position and growth prospects.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

Declining revenue growth poses challenges to sustaining profitability and may require strategic adjustments to reverse the trend.

Increased Competitive Pressure

Rising competition could pressure margins and market share, necessitating increased promotional activities and innovation to maintain position.

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 primarily through the sale of its consumer and professional products. The company generates revenue through various key streams, including sales of personal care products (diapers, feminine care), consumer tissue products (toilet paper, paper towels), and professional products (commercial tissue, incontinence products). The company's revenue model is driven by a combination of direct sales to retailers, distributors, and wholesalers, as well as e-commerce channels. Additionally, Kimberly-Clark benefits from significant brand loyalty and market penetration, allowing it to maintain competitive pricing. Strategic partnerships with retailers and a focus on expanding its product offerings and geographic presence further contribute to its earnings.

Kimberly Clark Financial Statement Overview

Summary

Kimberly Clark faces challenges with declining revenue and profitability margins, coupled with high leverage on the balance sheet. However, the company demonstrates operational efficiency and strong cash flow generation. While the financial position shows areas of concern, particularly in leverage, the cash flow strength provides a buffer against financial instability.

Income Statement

Kimberly Clark's income statement shows a declining revenue trend with a TTM revenue growth rate of -4.34%. Gross profit margin has slightly decreased from 35.79% in 2024 to 35.16% in TTM, indicating pressure on cost management. The net profit margin also declined to 8.42% in TTM from 12.69% in 2024, reflecting reduced profitability. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.86 in TTM, indicating significant leverage and potential financial risk. The return on equity has decreased to 1.34% in TTM from 3.03% in 2024, reflecting lower profitability for shareholders. The equity ratio remains low, suggesting limited equity financing. Overall, the balance sheet indicates financial vulnerability due to high leverage.

Cash Flow

Kimberly Clark's cash flow statement shows a positive free cash flow growth rate of 14.80% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.37, suggesting moderate cash flow efficiency. The free cash flow to net income ratio is strong at 0.92, highlighting effective cash conversion. Overall, the cash flow position is stable with positive growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.06B	20.06B	20.43B	20.18B	19.44B	19.14B
Gross Profit	6.34B	7.18B	7.03B	6.22B	5.99B	6.82B
EBITDA	3.37B	3.98B	3.07B	3.38B	3.25B	3.98B
Net Income	1.97B	2.54B	1.76B	1.93B	1.81B	2.35B
Balance Sheet
Total Assets	16.89B	16.55B	17.34B	17.97B	17.84B	17.52B
Cash, Cash Equivalents and Short-Term Investments	617.00M	1.02B	1.09B	427.00M	270.00M	303.00M
Total Debt	7.24B	7.92B	8.11B	8.55B	8.70B	8.50B
Total Liabilities	15.56B	15.57B	16.28B	17.27B	17.10B	16.65B
Stockholders Equity	1.33B	840.00M	915.00M	547.00M	514.00M	626.00M
Cash Flow
Free Cash Flow	2.41B	2.51B	2.78B	1.86B	1.72B	2.51B
Operating Cash Flow	2.62B	3.23B	3.54B	2.73B	2.73B	3.73B
Investing Cash Flow	-194.00M	-100.00M	-418.00M	-785.00M	-1.06B	-2.31B
Financing Cash Flow	-686.00M	-3.17B	-2.37B	-1.76B	-1.70B	-1.57B

Kimberly Clark Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMB, the sentiment is Negative. The current price of 102.96 is below the 20-day moving average (MA) of 103.74, below the 50-day MA of 111.45, and below the 200-day MA of 125.82, indicating a bearish trend. The MACD of -1.69 indicates Negative momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 11.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMB.

Kimberly Clark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UL	73 Outperform	$145.80B	24.28	28.36%	3.41%	-0.30%	-14.60%
CHD	72 Outperform	$20.30B	26.61	18.59%	1.40%	1.45%	42.04%
PG	68 Neutral	$335.20B	20.94	31.90%	2.91%	1.23%	17.97%
KMB	67 Neutral	$34.17B	17.44	136.87%	4.90%	-10.04%	-23.41%
CL	63 Neutral	$62.93B	21.88	450.35%	2.64%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CLX	54 Neutral	$12.80B	16.44	4163.16%	4.69%	-9.35%	123.06%

Kimberly Clark Corporate Events

Kimberly-Clark Announces Joint Venture with Suzano

Kimberly-Clark Corporation announced on June 5, 2025, a strategic joint venture with Suzano S.A. for its International Family Care and Professional segment, marking a significant operational shift. The transaction, expected to close in mid-2026, involves Suzano acquiring a 51% interest for approximately $1.7 billion, with Kimberly-Clark retaining a 49% stake, and will result in the IFP Business being reported as discontinued operations in financial statements, reflecting a major impact on the company’s financial results and strategic direction.

Kimberly Clark Announces Departure of Chief Digital Officer

On November 6, 2025, Kimberly Clark announced the departure of Zackery Hicks, the Chief Digital and Technology Officer, effective March 31, 2026. Hicks will leave the company to pursue other opportunities and will receive compensation and benefits as per the company’s Severance Pay Plan.

Kimberly-Clark Announces Merger Agreement with Kenvue

On November 2, 2025, Kimberly-Clark Corporation entered into a merger agreement with Kenvue Inc., aiming to acquire all outstanding shares of Kenvue in a transaction valued at approximately $48.7 billion. This merger, which combines two iconic American companies, is expected to create a global health and wellness leader with a portfolio of complementary products, including 10 billion-dollar brands. The transaction is anticipated to generate significant synergies, with an estimated $2.1 billion in run-rate synergies and an accretive impact on Kimberly-Clark’s adjusted EPS by the second year. The merger is expected to close in the second half of 2026, pending shareholder and regulatory approvals.