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Kimberly Clark (KMB)
NYSE:KMB

Kimberly Clark (KMB) AI Stock Analysis

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Kimberly Clark

(NYSE:KMB)

Rating:70Outperform
Price Target:
$151.00
▲( 6.68% Upside)
Kimberly Clark's stock score reflects a balance of strong financial health and stable cash flow against challenges like high leverage and negative revenue growth. The company’s strategic initiatives and fair valuation, combined with a decent dividend yield, provide a supportive backdrop. However, technical indicators suggest caution in the near term, and external challenges such as tariffs and cost pressures remain significant concerns.
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 Strategy
Focus on innovation across pricing tiers positions it well to compete effectively against private label and potentially benefit from any trade-down.
Sales Growth
All segments (North America, International Personal Care, and International Family Care & Professional) reported positive organic sales and volume growth.
Negative Factors
Consumer Spending
There is acknowledgment of a softer consumer spending environment in the US, which could impact future growth.
Foreign Exchange
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.
Tariffs
Tariffs pose a meaningful profit headwind, with a $200M impact on net incremental tariff costs.

Kimberly Clark (KMB) vs. SPDR S&P 500 ETF (SPY)

Kimberly Clark Business Overview & Revenue Model

Company DescriptionKimberly-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 MoneyKimberly-Clark makes money primarily through the manufacture and sale of personal care and consumer tissue products. The company's revenue model is centered on its strong brand portfolio, which includes leading names in diapers, tissues, and feminine care products. Kimberly-Clark generates revenue from multiple channels, including retail sales through supermarkets, drugstores, and other retail outlets, as well as direct sales to businesses and institutions in its professional segment. Key revenue streams include consumer tissue products such as Kleenex tissues and Scott paper towels, personal care items like Huggies diapers and Kotex feminine products, and professional health and hygiene products. The company also benefits from strategic partnerships and collaborations with retailers and distributors to expand its market reach and optimize its supply chain efficiencies.

Kimberly Clark Key Performance Indicators (KPIs)

Any
Any
Operating Income by Geography
Operating Income by Geography
Shows how much profit is generated in each region, revealing the company's strongest markets and potential exposure to regional economic fluctuations.
Chart InsightsKimberly-Clark's operating income in North America has shown a recovery trend, with recent quarters surpassing pre-pandemic levels, driven by strategic initiatives like the Powering Care strategy. Outside North America, income remains volatile, reflecting economic pressures in Latin America and Southeast Asia. The earnings call highlights record productivity savings and market share gains, yet warns of muted pricing growth and challenges in certain markets. The company is focusing on volume and mix-driven growth, with SG&A savings expected to boost operating profit margins in 2025.
Data provided by:Main Street Data

Kimberly Clark Financial Statement Overview

Summary
Kimberly Clark demonstrates solid financial health with strong margins and cash flow performance despite recent revenue declines. The high leverage is a notable risk, but the company effectively uses its equity, as shown by the high ROE. While revenue growth is a concern, the company's operational efficiency and cash management support its continued stability and profitability.
Income Statement
72
Positive
Kimberly Clark's TTM (Trailing-Twelve-Months) gross profit margin is approximately 35.5%, indicating strong profitability in the current period. The TTM net profit margin stands at about 9.6%, showing a decrease compared to previous annual results, which could signal increasing expenses or declining revenue. The revenue growth rate from 2023 to TTM is negative at -3.3%, which raises concerns about declining top-line performance. Despite these challenges, the company maintains a healthy EBIT margin of 16.3% and an EBITDA margin of 18.8% in TTM, demonstrating operational efficiency.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is high at 5.89, indicating significant leverage, which poses financial risk. However, the return on equity (ROE) for TTM is impressive at 172.4%, showcasing exceptional shareholder returns. The equity ratio is low at 6.8%, emphasizing reliance on debt financing. Overall, while the high leverage is concerning, the strong ROE mitigates some risk by reflecting effective use of equity.
Cash Flow
75
Positive
Kimberly Clark has managed a robust free cash flow to net income ratio of 1.37 in TTM, highlighting strong cash generation relative to profits. The operating cash flow to net income ratio is 1.65, further indicating healthy cash flow management. The free cash flow grew by 3.3% from 2024 to TTM, signaling stable cash flow generation despite revenue challenges. Overall, the company's cash flow performance is solid, reflecting its capability to sustain operations and return value to shareholders.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.75B20.06B20.43B20.18B19.44B19.14B
Gross Profit
7.00B7.18B7.03B6.22B5.99B6.82B
EBIT
3.21B3.21B2.34B2.68B2.56B3.24B
EBITDA
3.93B3.98B3.07B3.38B3.25B3.98B
Net Income Common Stockholders
2.46B2.54B1.76B1.93B1.81B2.35B
Balance SheetCash, Cash Equivalents and Short-Term Investments
563.00M1.02B1.09B427.00M270.00M303.00M
Total Assets
16.30B16.55B17.34B17.97B17.84B17.52B
Total Debt
7.25B7.57B8.11B8.42B8.57B8.36B
Net Debt
6.68B6.55B7.02B8.00B8.30B8.06B
Total Liabilities
15.08B15.57B16.28B17.27B17.10B16.65B
Stockholders Equity
1.10B840.00M915.00M547.00M514.00M626.00M
Cash FlowFree Cash Flow
2.39B2.51B2.78B1.86B1.72B2.51B
Operating Cash Flow
3.12B3.23B3.54B2.73B2.73B3.73B
Investing Cash Flow
81.00M-100.00M-418.00M-785.00M-1.06B-2.31B
Financing Cash Flow
-3.36B-3.17B-2.37B-1.76B-1.70B-1.57B

Kimberly Clark Technical Analysis

Technical Analysis Sentiment
Positive
Last Price141.55
Price Trends
50DMA
137.37
Positive
100DMA
134.88
Positive
200DMA
135.67
Positive
Market Momentum
MACD
1.30
Negative
RSI
61.11
Neutral
STOCH
77.77
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 141.55 is above the 20-day moving average (MA) of 135.14, above the 50-day MA of 137.37, and above the 200-day MA of 135.67, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PGPG
76
Outperform
$388.87B26.3430.29%2.46%-0.16%2.74%
73
Outperform
$45.56B43.2710.22%3.43%-1.18%-29.18%
KMKMB
70
Outperform
$46.97B19.29229.84%3.48%-3.12%34.80%
CLCL
65
Neutral
$75.04B26.22977.07%2.18%0.98%12.12%
65
Neutral
$8.84B14.904.69%203.33%3.49%-1.84%
CHCHD
63
Neutral
$23.63B41.1613.35%1.19%2.18%-26.08%
CLCLX
62
Neutral
$16.13B23.501176.27%3.73%-2.64%189.29%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KMB
Kimberly Clark
141.55
16.84
13.50%
CHD
Church & Dwight
95.94
-7.04
-6.84%
CLX
Clorox
130.88
6.14
4.92%
CL
Colgate-Palmolive
92.59
2.59
2.88%
PG
Procter & Gamble
165.86
6.64
4.17%
KVUE
Kenvue, Inc.
23.73
5.18
27.92%

Kimberly Clark Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 1.06%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging environment with significant tariff and cost headwinds impacting profitability. Despite these challenges, Kimberly-Clark is making progress with its Powering Care strategy and product innovations. The SG&A savings and successful product launches are positive, but the significant impact of tariffs and less-than-expected sales growth present notable concerns.
Q1-2025 Updates
Positive Updates
Strong Progress in Powering Care Strategy
Kimberly-Clark reported solid progress across the three pillars of their Powering Care strategy, building on a strong foundation established in 2024. The company is optimizing margins and delivering world-class gross productivity enabled by their integrated margin management approach.
SG&A Savings on Track
Kimberly-Clark is on track to generate approximately $200 million of SG&A savings over the next few years, with some savings already realized in the first quarter.
Successful Product Innovations
The company is launching a slate of innovations, such as Huggies Snug & Dry in North America, which has received positive reviews from consumers and is expected to drive growth.
Negative Updates
Organic Sales Growth Below Expectations
Organic sales in North America were slightly below expectations due to factors such as one less day of shipments, lower year-on-year North America private label shipments, and strategic pricing investments.
Significant Tariff Impact
Kimberly-Clark faces an incremental $300 million in tariffs, with two-thirds coming from US tariffs on China and the rest from US reciprocal tariffs and retaliatory tariffs from other countries.
Challenging Cost Environment
The cost environment remains challenging with an additional $300 million gross impact from tariffs and an unchanged $200 million cost from inflation.
Company Guidance
During Kimberly-Clark's first quarter 2025 earnings call, the company provided guidance reflecting a nuanced balance of challenges and strategic initiatives. Despite a slightly softer-than-expected top line, the company's performance aligned with its yearly plan, emphasizing its Powering Care strategy. Kimberly-Clark anticipates generating approximately $200 million in SG&A savings over the next few years and is targeting 1.5% to 2% organic sales growth by year-end, signaling a significant ramp-up from the first quarter. The company also faces a noteworthy $300 million gross impact from tariffs and aims to offset one-third of this in 2025, with full mitigation by 2026. To support its strategy, Kimberly-Clark is investing heavily in innovation and marketing, maintaining a 6% advertising level consistent with the prior year, and focusing on providing stronger consumer value propositions globally. As part of its long-term vision, the company seeks to deliver industry-leading productivity and aims to sustain its gross margin target of at least 40% by the decade's end.

Kimberly Clark Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
Kimberly-Clark Transfers Stock Listing to Nasdaq
Neutral
May 19, 2025

On May 19, 2025, Kimberly-Clark Corporation announced its decision to transfer the listing of its common stock from the New York Stock Exchange to Nasdaq, effective May 30, 2025. This strategic move includes amendments to the company’s By-Laws to align with Nasdaq’s requirements, potentially impacting the company’s operations and stock trading dynamics.

The most recent analyst rating on (KMB) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Kimberly Clark stock, see the KMB Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Kimberly-Clark Appoints New President and COO
Positive
May 6, 2025

On May 1, 2025, Kimberly-Clark Corporation appointed Russell Torres as President and Chief Operating Officer, entrusting him with the oversight of the company’s business segments and global functions. This strategic leadership change aims to bolster the company’s operational efficiency and market growth. Additionally, Jeffrey Melucci was elected as Chief Strategy, Business Development and Administrative Officer to enhance corporate strategy and development.

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.