Kimberly Clark (KMB) AI Stock Analysis

• Market Cap: $43.07B
• Dividend Yield: 3.81%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.13
• Revenue Growth: -6.89%
• EPS Growth: 7.52%
• Country: US
• Employees: 38,000
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Household & Personal Products
• EPS (TTM): 1.92
• Shares Outstanding: 331,779,940
• 10 Day Avg. Volume: 2,029,277
• 30 Day Avg. Volume: 2,387,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 12.80
• 1Y Price Target: $143.08
• Price Target Upside: 9.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 60 Neutral
• Price Target: $137.00 ▲(5.21% Upside)

Kimberly Clark's overall stock score reflects strong profitability and reasonable valuation, offset by challenges in revenue growth and high leverage. The company's strategic initiatives and attractive dividend yield provide some positive outlook, but technical indicators and earnings call insights suggest caution.

Positive Factors

Earnings

KMB's Q2 results were better than expected as volume led growth of 5% in the quarter drove an EPS beat.

Market Share

The company achieved global market share growth with significant gains in multiple regions, including a notable increase in China.

Strategic Decisions

The strategic decision to form a joint venture with Suzano is viewed positively, allowing a focus on higher growth and margin businesses.

Negative Factors

Commoditized Categories

Concerns remain about exposure to commoditized categories like paper products and the track record for volatile results.

Consumer Concerns

Challenges in birth rates and reduced disposable income among lower income consumer cohorts may slow down usage frequency in the baby category.

Tariffs Impact

Tariffs remain a key headwind to EBIT and EPS growth for the year, also the primary driver behind recently lowered guidance.

Kimberly Clark Business Overview & Revenue Model

Company Description

Kimberly-Clark Corporation (KMB) is a global healthcare and consumer products company headquartered in Irving, Texas. Established in 1872, it operates in the sectors of personal care, consumer tissue, and professional products. The company's core products include well-known brands such as Huggies, Pampers, Kotex, Scott, and Kleenex, which are designed to improve the health and hygiene of consumers worldwide.

How the Company Makes Money

Kimberly-Clark generates revenue primarily through the sale of its consumer products across various channels, including retail, e-commerce, and wholesale. The company's key revenue streams come from its personal care products, which include diapers, feminine hygiene products, and adult incontinence products. Additionally, Kimberly-Clark earns income from its consumer tissue products, such as toilet paper and paper towels, as well as professional products sold to businesses and institutions. The company benefits from strong brand recognition and customer loyalty, which drive consistent sales. Strategic partnerships with retailers and distributors enhance its market reach and efficiency in supply chain management, contributing to its overall earnings. Factors such as innovation in product development, effective marketing strategies, and global expansion into emerging markets also play a significant role in boosting its revenue.

Kimberly Clark Financial Statement Overview

Summary

Kimberly Clark shows strong profitability margins but faces challenges with declining revenue growth and high leverage. The company's cash flow generation remains adequate, but the decrease in free cash flow growth and high debt levels pose potential risks.

Income Statement

Kimberly Clark's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 4.39%, which is concerning. However, the company maintains a healthy gross profit margin of 35.21% and a net profit margin of 12.87%. The EBIT and EBITDA margins are also solid at 16.12% and 20.61%, respectively, indicating stable profitability despite revenue challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 5.70 in the TTM period, which is a potential risk. Return on equity has decreased to 2.16%, reflecting lower profitability on shareholders' equity. The equity ratio stands at 7.58%, indicating a low proportion of equity financing, which could be a concern for financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 12.12% in the TTM period, which is a negative indicator. However, the company maintains a reasonable operating cash flow to net income ratio of 0.40 and a free cash flow to net income ratio of 0.73, suggesting adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.88B	20.06B	20.43B	20.18B	19.44B	19.14B
Gross Profit	6.65B	7.18B	7.03B	6.22B	5.99B	6.82B
EBITDA	3.89B	3.98B	3.07B	3.38B	3.25B	3.98B
Net Income	2.43B	2.54B	1.76B	1.93B	1.81B	2.35B
Balance Sheet
Total Assets	16.77B	16.55B	17.34B	17.97B	17.84B	17.52B
Cash, Cash Equivalents and Short-Term Investments	634.00M	1.02B	1.09B	427.00M	270.00M	303.00M
Total Debt	7.24B	7.57B	8.11B	8.55B	8.70B	8.50B
Total Liabilities	15.37B	15.57B	16.28B	17.27B	17.10B	16.65B
Stockholders Equity	1.27B	840.00M	915.00M	547.00M	514.00M	626.00M
Cash Flow
Free Cash Flow	2.10B	2.51B	2.78B	1.86B	1.72B	2.51B
Operating Cash Flow	2.87B	3.23B	3.54B	2.73B	2.73B	3.73B
Investing Cash Flow	-36.00M	-100.00M	-418.00M	-785.00M	-1.06B	-2.31B
Financing Cash Flow	-3.35B	-3.17B	-2.37B	-1.76B	-1.70B	-1.57B

Kimberly Clark Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 130.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 130.21 is below the 20-day moving average (MA) of 132.80, below the 50-day MA of 130.42, and below the 200-day MA of 132.59, indicating a bearish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 7.05 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
PG	77 Outperform	$365.34B	23.99	31.23%	2.63%	0.29%	7.85%
CLX	71 Outperform	$14.39B	18.32	249.61%	4.12%	0.16%	191.17%
CHD	70 Outperform	$22.50B	43.75	12.07%	1.26%	1.13%	-34.78%
CL	63 Neutral	$68.00B	23.63	705.21%	2.42%	0.05%	3.55%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
KVUE	61 Neutral	$39.90B	28.79	13.56%	3.96%	-2.15%	26.65%
KMB	60 Neutral	$43.07B	18.02	196.26%	3.81%	-6.89%	7.52%

Kimberly Clark Corporate Events

Kimberly-Clark Announces Joint Venture with Suzano

On June 5, 2025, Kimberly-Clark announced a strategic joint venture with Suzano S.A., involving the company’s former International Family Care and Professional segment. This venture, where Suzano will hold a 51% interest, represents a significant operational shift for Kimberly-Clark, impacting its financial results as the IFP Business is now reported as discontinued operations.

Kimberly-Clark Forms Joint Venture with Suzano

On June 5, 2025, Kimberly-Clark announced a strategic partnership with Suzano to form a joint venture focusing on consumer tissue and professional products. This venture will include most of Kimberly-Clark’s International Family Care and Professional business, with Suzano acquiring a 51% interest for approximately $1.7 billion. The transaction aims to enhance operational efficiency and market share, with Kimberly-Clark retaining a 49% stake. This move is expected to sharpen Kimberly-Clark’s focus on higher growth and margin segments, improve shareholder returns, and reduce exposure to volatile input costs. The transaction is anticipated to close in mid-2026, pending regulatory approvals.