Kimberly Clark (KMB) AI Stock Analysis

• Market Cap: $36.88B
• Dividend Yield: 5.03%
• Average Volume (3M): 5.90M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.13
• 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): 1.86
• Shares Outstanding: 331,922,360
• 10 Day Avg. Volume: 4,558,849
• 30 Day Avg. Volume: 5,901,093
• PEG Ratio: -0.84
• Price to Book (P/B): 22.37
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 20.50
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 6.97
• Enterprise Value/Ebitda: 12.96
• 1Y Price Target: $124.89
• Price Target Upside: 14.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.57
• Revenue Forecast (FY): $16.80B

• Rating: 61 Neutral
• Price Target: $117.00 ▲(7.13% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is primarily supported by strong cash generation, resilient margins, and constructive 2026 guidance, with valuation helped by a high dividend yield. These positives are tempered by elevated leverage and negative revenue momentum, while technical signals remain weak with the stock below key long-term moving averages and MACD negative.

Positive Factors

Cash generation

Kimberly‑Clark's sustained ~$2.8B TTM operating and free cash flow with roughly 100% FCF conversion (and FCF +~15% vs prior period) provides durable internal funding. This supports dividends, productivity investments, voluntary deleveraging, and M&A funding without reliance on capital markets.

Margin resilience & targets

Staples-level gross (~35.6%) and net (~11.7%) margins are resilient and supported by industry-leading productivity. Management’s medium-term ambition (gross ≥40% and operating profit 18–20% pre-2030) and expected productivity sustain structural upside to cash flow and return generation.

Market share gains & international momentum

Consistent market share gains across key markets and positive international organic growth diversify revenue and drive higher-margin expansion. Durable share improvement, especially in faster-growing markets, supports premiumization, scale economics, and a healthier long-term revenue mix.

Negative Factors

Elevated leverage

An elevated debt-to-equity of ~4.0x and thin equity reduce financial flexibility and raise interest and refinancing exposure. High leverage constrains the company's ability to pursue sizable strategic investments or absorb shocks unless strong FCF is sustained over multiple years.

Negative revenue momentum

TTM revenue decline (~4.7%) and multi-year flat-to-down top-line trend indicate structural demand or mix challenges. Persistent revenue weakness limits operating leverage, forces reliance on productivity and pricing actions, and makes meeting longer-term growth targets more execution-dependent.

Merger & litigation execution risk

Ongoing shareholder litigation and disclosure disputes around the Kenvue deal create execution risk. Legal challenges and potential regulatory scrutiny can delay closings, increase costs, distract management, and jeopardize timely realization of expected synergies and strategic benefits.

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

Strong and improving free cash flow (~$2.8B TTM; ~100% of net income) and solid staples-level profitability (TTM gross margin ~35.6%, net margin ~11.7%) support the score. Offsetting these strengths are negative near-term revenue momentum (TTM revenue down ~4.7%) and a highly leveraged balance sheet with thin equity (debt-to-equity ~4.0x), limiting financial flexibility.

Income Statement

Profitability remains solid for a staples business, with TTM (Trailing-Twelve-Months) gross margin around 35.6% and net margin about 11.7%, supported by healthy operating and EBITDA margins. However, growth has turned negative: TTM (Trailing-Twelve-Months) revenue is down ~4.7% versus the prior period, and revenue has been essentially flat-to-down since 2022. Earnings also appear to have come off 2024 levels, signaling some pressure on the top line and overall momentum despite resilient margins.

Balance Sheet

Leverage is the key weakness. Total debt remains high and equity is thin, resulting in an elevated debt-to-equity of ~4.0x in TTM (Trailing-Twelve-Months) (and far higher in recent annual periods). While equity improved versus 2024 and leverage looks better than the unusually stretched 2021–2024 range, the capital structure is still aggressive and leaves less balance-sheet flexibility. Returns on equity are very high, but they are amplified by the low equity base rather than purely driven by operating strength.

Cash Flow

Cash generation is a strength. TTM (Trailing-Twelve-Months) operating cash flow is strong at ~$2.8B and free cash flow is also ~$2.8B, with free cash flow up ~15% versus the prior period. Free cash flow conversion is robust at ~100% of net income in TTM (Trailing-Twelve-Months), improving meaningfully from recent annual levels. A watch item is that operating cash flow relative to debt remains moderate, implying debt reduction capacity is good but not exceptional given the leverage profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.22B	20.06B	20.43B	20.18B	19.44B
Gross Profit	6.13B	7.18B	7.03B	6.22B	5.99B
EBITDA	3.11B	3.98B	3.07B	3.38B	3.25B
Net Income	2.02B	2.54B	1.76B	1.93B	1.81B
Balance Sheet
Total Assets	17.23B	16.55B	17.34B	17.97B	17.84B
Cash, Cash Equivalents and Short-Term Investments	688.00M	1.02B	1.09B	427.00M	270.00M
Total Debt	7.17B	7.92B	8.11B	8.55B	8.70B
Total Liabilities	15.57B	15.57B	16.28B	17.27B	17.10B
Stockholders Equity	1.50B	840.00M	915.00M	547.00M	514.00M
Cash Flow
Free Cash Flow	1.64B	2.51B	2.78B	1.86B	1.72B
Operating Cash Flow	2.78B	3.23B	3.54B	2.73B	2.73B
Investing Cash Flow	-951.00M	-100.00M	-418.00M	-785.00M	-1.06B
Financing Cash Flow	-2.18B	-3.17B	-2.37B	-1.76B	-1.70B

Kimberly Clark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 109.21 is above the 20-day moving average (MA) of 105.60, above the 50-day MA of 102.52, and below the 200-day MA of 117.32, indicating a neutral trend. The MACD of 2.37 indicates Negative momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, 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
PG	74 Outperform	$384.11B	24.49	31.58%	2.92%	1.23%	17.97%
CHD	73 Outperform	$24.87B	34.84	17.62%	1.38%	1.45%	42.04%
UL	69 Neutral	$161.94B	23.68	32.63%	3.74%	-0.30%	-14.60%
CL	65 Neutral	$78.64B	37.33	1602.26%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CLX	62 Neutral	$15.31B	20.69	―	5.05%	-9.35%	123.06%
KMB	61 Neutral	$36.88B	18.32	147.22%	5.03%	-10.04%	-23.41%

Kimberly Clark Corporate Events

Kimberly-Clark Shareholders Approve Kenvue Acquisition Plan

At virtual special meetings on January 29, 2026, Kimberly-Clark and Kenvue shareholders overwhelmingly approved the stock issuance and merger agreement underlying Kimberly-Clark’s planned acquisition of Kenvue, with 96% of K-C votes cast backing the deal and roughly 99% of Kenvue votes adopting the merger terms. The strong support clears a crucial milestone toward closing the transaction in the second half of 2026, signaling investor confidence in the strategic rationale of combining the companies’ complementary consumer brands to accelerate growth, integration planning, and value creation, pending regulatory approvals and customary closing conditions.

The most recent analyst rating on (KMB) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on Kimberly Clark stock, see the KMB Stock Forecast page.

Kimberly-Clark updates merger proxy amid shareholder lawsuits

Kimberly-Clark and Kenvue, which signed a merger agreement on November 2, 2025, have progressed their planned two-step merger structure, with the SEC declaring effective on December 16, 2025, a registration statement covering Kimberly-Clark shares to be issued in the deal and both companies mailing a joint proxy statement/prospectus ahead of special shareholder meetings scheduled for January 29, 2026. Since early December 2025, multiple lawsuits and shareholder demand letters have been filed in Wisconsin federal court, New Jersey state court, New York state court and the Delaware Court of Chancery by purported stockholders of both Kenvue and Kimberly-Clark, alleging material disclosure omissions in the merger-related proxy and prospectus materials and seeking, among other remedies, to block the shareholder votes or the merger until additional information is provided. In response, Kimberly-Clark has voluntarily supplemented the joint proxy statement/prospectus with extensive additional detail on the background of negotiations, adviser relationships and fees, valuation work, financial projections and comparable company analyses, explicitly to reduce the risk of delay or disruption to the merger and to minimize the costs and distraction of defending the litigation, while its board continues to unanimously recommend that shareholders vote in favor of the share issuance and related adjournment proposals needed to complete the Kenvue transaction.

The most recent analyst rating on (KMB) stock is a Hold with a $102.00 price target. To see the full list of analyst forecasts on Kimberly Clark stock, see the KMB Stock Forecast page.

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.

The most recent analyst rating on (KMB) stock is a Buy with a $162.00 price target. To see the full list of analyst forecasts on Kimberly Clark stock, see the KMB Stock Forecast page.