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Kimberly Clark (KMB)
NASDAQ:KMB
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Kimberly Clark
(NASDAQ:KMB)
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Rating:57Neutral
Price Target:
$132.00
â–²(5.57% Upside)
Kimberly Clark's overall stock score is driven by solid valuation metrics and strong profitability margins. However, the company's high leverage, declining revenue growth, and bearish technical indicators weigh down the score. Strategic improvements in revenue growth and debt management could enhance future performance.
Positive Factors
Strong Brand Recognition
Kimberly-Clark's well-known brands like Huggies and Kleenex ensure a loyal customer base, supporting stable revenue streams and market position.
Profitability Margins
Strong profitability margins indicate efficient cost management and pricing power, contributing to long-term financial health.
Cash Flow Generation
Adequate cash flow generation supports operational needs and strategic investments, enhancing financial flexibility.
Negative Factors
High Leverage
High leverage can strain financial resources and limit the company's ability to invest in growth opportunities, impacting long-term stability.
Declining Revenue Growth
Decreasing revenue growth suggests challenges in market expansion or product demand, potentially affecting future profitability.
Free Cash Flow Decline
Reduced free cash flow growth limits the company's ability to fund new projects and return capital to shareholders, impacting long-term growth potential.
Kimberly Clark (KMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.63B
Dividend Yield3.99%
Average Volume (3M)2.13M
Price to Earnings (P/E)17.3
Beta (1Y)0.13
Revenue Growth-6.89%
EPS Growth7.52%
CountryUS
Employees38,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.92
Shares Outstanding331,779,940
10 Day Avg. Volume1,953,564
30 Day Avg. Volume2,134,478
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit7.48
Enterprise Value/Ebitda12.80
Forecast
1Y Price Target
$144.08Price Target Upside15.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 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 Key Performance Indicators (KPIs)
Any
Operating Income by Geography
Reveals profitability from various regions, indicating which markets are most lucrative and where Kimberly Clark might need to address operational challenges.
Reveals profitability from various regions, indicating which markets are most lucrative and where Kimberly Clark might need to address operational challenges.
Data provided by:
Main Street Data
Main Street DataKimberly Clark Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment. While there are significant achievements in productivity and strategic initiatives, the unexpected tariff impact and softer sales in key markets present notable challenges.Q1-2025 Updates
Positive Updates
Solid Progress on Powering Care Strategy
Kimberly-Clark continues to make progress on its Powering Care strategy, aiming for stronger, more profitable growth through innovation and productivity.
SG&A Savings Target
The company is on track to generate approximately $200 million of SG&A savings in the next few years, providing leverage to reinvest in the business.
Strong Productivity Delivery
The company delivered strong productivity in costs and overheads, maintaining profitability despite softer organic sales.
Resilient Demand in Core Categories
Core categories continue to show resilient demand, with consumers interested in better-performing products.
Negative Updates
Tariff Impact
Kimberly-Clark faces an unexpected $300 million gross impact from tariffs, primarily affecting finished goods, leading to a revision of their full-year guidance.
Softer Organic Sales
Organic sales in North America were slightly below expectations, attributed to a variety of factors including category growth deceleration and strategic pricing investments.
Emerging Market Pressures
The company faces currency headwinds and value-seeking pressures in emerging markets, impacting pricing strategies.
Challenge in Offsetting Tariffs
The company plans to address only a third of the tariff impact this year, with full mitigation extending into 2026.
Company Guidance
In the Kimberly-Clark First Quarter 2025 Earnings Call, the company provided guidance on several metrics and strategic initiatives. Despite a softer than expected top line for Q1, results were consistent with their full-year plan, with global weighted share held steady. The company is on track to achieve approximately $200 million in SG&A savings over the next few years, and they are confident in executing their plan amid a dynamic external environment. They aim for 1.5% to 2% organic sales growth, with volume and mix expected to accelerate in upcoming quarters. The company is addressing a $300 million gross impact from new tariffs, working to mitigate about a third of this cost in 2025. Additionally, they are committed to maintaining investments in innovation and marketing to support their Powering Care strategy. This approach emphasizes differentiation at every pricing tier, industry-leading productivity, and organizational agility to drive long-term growth and shareholder value.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.65
Positive
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.50
Neutral
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.60
Neutral
| 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
Negative
125.04
Price Trends
129.17
Negative
130.63
Negative
131.22
Negative
Market Momentum
-0.64
Positive
39.28
Neutral
27.53
Neutral
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 125.04 is below the 20-day moving average (MA) of 129.18, below the 50-day MA of 129.17, and below the 200-day MA of 131.22, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 367.06B | 24.10 | 30.55% | 2.63% | 0.29% | 7.85% | |
69 Neutral | 22.23B | 43.04 | 11.95% | 1.28% | 1.13% | -34.78% | |
68 Neutral | 15.02B | 18.85 | 252.34% | 3.99% | 0.16% | 191.17% | |
63 Neutral | 66.38B | 23.08 | 414.39% | 2.48% | 0.05% | 3.55% | |
58 Neutral | 35.02B | 24.79 | 10.65% | 4.51% | -2.15% | 26.65% | |
57 Neutral | $41.63B | 17.29 | 196.26% | 3.99% | -6.89% | 7.52% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
KMB
Kimberly Clark
125.04
-11.48
-8.41%
CHD
Church & Dwight
91.52
-11.09
-10.81%
CLX
Clorox
124.85
-34.31
-21.56%
CL
Colgate-Palmolive
81.48
-20.78
-20.32%
PG
Procter & Gamble
158.05
-13.49
-7.86%
KVUE
Kenvue, Inc.
18.25
-4.29
-19.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.