KMB  Kimberly-clark Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Containers/Packaging

Market Cap.

47.62B

Vuru Grade

51.28/100

Current Price

$133.66
-0.68 (-0.51%)

Growth Price

$46.24
Overvalued by 65.40%

Stability Price

$12.78
Overvalued by 90.43%

Company Metrics

  • P/E 22.31
  • P/S 2.63
  • P/B 146.03
  • EPS 5.99
  • Cash ROIC 20.64%
  • Cash Ratio 0.16
  • Dividend 3.88 / 2.88%
  • Avg. Vol. 2.02M
  • Shares 356.28M
  • Market Cap. 47.62B

Company Description

Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The Personal Care segment provides disposable diapers, training and youth pants, and swimpants; baby wipes; and feminine and incontinence care... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Better Buy: Kimberly-Clark Corporation vs. Johnson & Johnson
Motley Fool - Feb 7, 2017
As long-term investments, it's hard not to like dividend giants Kimberly-Clark (NYSE:KMB) and Johnson & Johnson (NYSE:JNJ).
Kimberly-Clark (KMB) Shares Cross Above 200 DMA - Nasdaq
Kimberly-Clark Corporation Risk Points versus Consumer Discretionary - CML News
Better Dividend Stock Buy: Procter & Gamble Co. vs. Kimberly-Clark Corp
Motley Fool - Jan 30, 2017
That's a big reason why Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB) boast streaks of dividend raises that stretch back not just years, but decades.
Kimberly-Clark: Buy It Before The Ex-Dividend Date
Seeking Alpha - Feb 16, 2017
Kimberly-Clark: Buy It Before The Ex-Dividend Date. Feb.16.17 | About: Kimberly-Clark Corporation (KMB) · PendragonY.
Kimberly-Clark Corporation (KMB) Moves Higher on Volume Spike for February 21 - Equities.com
Analyst's Predictions on Kimberly-Clark Corp. (KMB), Deere & Co. (DE) - StockNewsJournal
Why Is Kimberly-Clark (KMB) Up 10.5% Since the Last Earnings Report?
Nasdaq - Feb 24, 2017
A month has gone by since the last earnings report for Kimberly-Clark Corporation KMB . Shares have added about 10.5% in that time frame, outperforming the market.
The Kanaly Trust Co Boosts Stake in Kimberly-Clark Corp. (KMB) - DailyQuint
Standard Life Investments LTD Cuts Stake in Kimberly-Clark Corp. (KMB) - Petro Global News 24
Kimberly-Clark: Sell The Dividend Increase
Seeking Alpha - Jan 30, 2017
Kimberly-Clark (NYSE:KMB) is a stock I've been critical of for some time now as the valuation has simply been out of hand.
Kimberly-Clark Corporation (KMB) Rises 4.19% for February 17
Equities.com - Feb 17, 2017
Among the biggest risers on the S&P 500 on Friday February 17 was Kimberly-Clark Corporation ($KMB), popping some 4.19% to a price of $131.93 a share with some 6.66 million shares trading hands.
Kimberly-Clark Corporation (KMB) Moves Higher on Volume Spike for January 31
Equities.com - Jan 31, 2017
Kimberly-Clark Corporation (KMB) traded on unusually high volume on Jan. 31, as the stock gained 0.45% to close at $121.13.
Earnings Forecast Research on Kimberly-Clark Corporation (KMB) - Highland Mirror
Girard Partners LTD. Raises Position in Kimberly-Clark Corporation (KMB) - Sports Perspectives
Kimberly-Clark: Analyzing The Recent Dividend Increase
Seeking Alpha - Jan 27, 2017
It has been seven years since the last recession. This is longer than the average time between recessions, so it could be argued the U.S.
Asset Advisors Corp Cuts Position in Kimberly Clark Corp (KMB) by $9836740 - Highland Mirror
Univest Corp of Pennsylvania Has $3718000 Stake in Kimberly-Clark Corporation ... - Sports Perspectives
Kimberly-Clark, Gown Buyers Want Experts, Evidence Blocked
Law360 (subscription) - Feb 9, 2017
Law360, New York (February 8, 2017, 8:48 PM EST) -- Kimberly-Clark Corp. and surgery centers bringing a class action alleging the company passed off porous surgery gowns as essentially impermeable on Tuesday submitted several motions in California ...
Kleenex® Exfoliating Cushions Voted Product of the Year 2017
PR Newswire (press release) - Feb 14, 2017
Kimberly-Clark (NYSE: KMB) and its well-known global brands are an indispensable part of life for people in more than 175 countries.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for KMB to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate KMB's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$133.66 Current Price

$46.24 Growth Price (DCF)

Overvalued by 65.40%


Growth Rate Assumed by Market: 26.86%


Future Free Cash Flow Growth Rate: 1.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.78 Stability Price (EPV)

Overvalued by 90.43%


Discount Rate: 15.0%

$6.95 Book Price

Overvalued by 94.80%


Excellent Cash Return on Invested Capital over the past 5 years

KMB has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

KMB has created $20.64 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 2.20B 2.09B 1.81B 1.25B 2.46B
divided by
Invested Capital 12.68B 12.02B 8.51B 7.87B 7.83B
Cash ROIC 17.32% 17.37% 21.22% 15.88% 31.42%

Varying Return on Equity over the past 5 years

KMB has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

KMB has generated $60.24 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 1.83B 2.22B 1.60B 1.07B 2.22B
divided by
Stockholders' Equity 4.99B 4.86B 729.00M -174.00M -102.00M
Return on Equity 36.67% 45.74% 218.79% - -

Excellent Business Performance over the past 10 years

KMB has been able to maintain profitability in good times and bad. This could mean KMB has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

KMB has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 1.44B 1.61B 2.63B 1.78B 1.32B 2.20B 2.09B 1.81B 1.25B 2.46B

Very Weak Balance Sheet

KMB is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of KMB's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 472.70M 364.00M 987.00M 876.00M 764.00M 1.11B 1.05B 789.00M 619.00M 923.00M
Current Assets 6.10B 5.81B 5.86B 6.33B 6.28B 6.59B 6.55B 5.56B 5.43B 5.12B
Total Assets 18.44B 18.09B 19.21B 19.86B 19.37B 19.87B 18.92B 15.53B 14.84B 14.60B
Current Liabilities 4.93B 4.75B 4.92B 5.34B 5.40B 6.09B 5.85B 6.23B 6.35B 5.85B
Total Liabilities 13.22B 14.21B 13.80B 13.95B 14.12B 14.89B 14.06B 14.80B 15.02B 14.70B
Stockholder' Equity 5.22B 3.88B 5.41B 5.92B 5.25B 4.99B 4.86B 729.00M -174.00M -102.00M
Current Ratio 1.24 1.22 1.19 1.19 1.16 1.08 1.12 0.89 0.85 0.87
TL-to-TA 0.72 0.79 0.72 0.70 0.73 0.75 0.74 0.95 1.01 1.01

Low or No Reinvestment of Profits over the past 10 years

KMB has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to KMB operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 8.75B 9.47B 10.33B 11.09B 8.24B 8.82B 9.71B 8.47B 4.99B 5.83B
Retained Earnings Growth - 8.20% 9.13% 7.33% -25.64% 7.02% 10.10% -12.81% -41.04% 16.76%

Competitive Industry over the past 10 years

KMB is likely operating in an industry with medium to low barriers to entry. This may mean that KMB doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that KMB invests heavily in R&D and Sales, General & Administrative expenses.

Only $9.18 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 1.82B 1.70B 1.99B 1.94B 1.59B 1.83B 2.22B 1.60B 1.07B 2.22B
divided by
Revenue 18.27B 19.42B 19.12B 19.75B 20.85B 21.06B 21.15B 19.72B 18.59B 18.20B
Net Profit Margin 9.98% 8.75% 10.43% 9.84% 7.63% 8.68% 10.50% 8.09% 5.73% 12.19%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. KMB has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$33.00 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 5.70B 5.86B 6.42B 6.55B 6.15B 6.75B 7.24B 6.68B 6.62B 6.65B
divided by
Revenue 18.27B 19.42B 19.12B 19.75B 20.85B 21.06B 21.15B 19.72B 18.59B 18.20B
Gross Margin 31.23% 30.17% 33.59% 33.17% 29.51% 32.04% 34.23% 33.88% 35.63% 36.54%

High Capital Intensity over the past 10 years

KMB spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

56.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 989.30M 906.00M 848.00M 964.00M 968.00M 1.09B 953.00M 1.04B 1.06B 771.00M
divided by
Net Income 1.82B 1.70B 1.99B 1.94B 1.59B 1.83B 2.22B 1.60B 1.07B 2.22B
Capital Expenditure Ratio 54.27% 53.36% 42.53% 49.61% 60.84% 59.79% 42.91% 65.14% 99.06% 34.75%

Very Strong Dividend History over the past 10 years

KMB has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests KMB is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 932.90M 950.00M 986.00M 1.07B 1.10B 1.15B 1.22B 1.26B 1.27B 1.31B
divided by
Shares Outstanding 445.70M 418.60M 416.80M 414.40M 398.60M 396.10M 387.30M 377.40M 366.30M 361.70M
Dividend Paid Per Share 2.09 2.27 2.37 2.57 2.76 2.91 3.16 3.33 3.47 3.62
Price at Year End 59.28 46.38 59.19 60.47 73.56 83.13 105.93 117.35 129.43 114.12
Dividend Yield 3.53% 4.89% 4.00% 4.25% 3.75% 3.50% 2.98% 2.84% 2.68% 3.18%

Strong History of Stock Buybacks over the past 10 years

KMB has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 445.70M 418.60M 416.80M 414.40M 398.60M 396.10M 387.30M 377.40M 366.30M 361.70M
Stock Bought Back - 6.47% 0.43% 0.58% 3.96% 0.63% 2.27% 2.62% 3.03% 1.27%
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