KMB Kimberly-Clark Corporation - Fundamental Analysis
NEUTRAL
KMB Stock | Fundamental Analysis & Investment Insights
NYSE
•
Consumer Defensive
•
Household & Personal Products
Current Price
$104.02
Analyst Target
$128.62
+23.7% Upside
52W High
$150.45
52W Low
$99.22
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Kimberly-Clark (KMB) trades at a significant discount to its 52-week high ($150.45) with a 1Y return of -18.0%, reflecting persistent macro and operational headwinds. While the stock offers a compelling 4.85% dividend yield and is attractively valued on forward P/E (13.63x vs sector avg 23.76x), near-term earnings growth is deeply negative (YoY EPS -50.2%), and profitability has eroded amid inflationary cost pressures. The company’s high leverage (Debt/Equity: 5.00) and weak liquidity (Current Ratio: 0.77) raise structural concerns, though recent quarterly earnings surprises have trended positive. Analysts maintain a 'hold' rating with a $128.62 target, implying ~23.6% upside, but insider selling and stagnant revenue growth temper conviction.
Key Strengths
Attractive forward valuation: Forward P/E of 13.63x significantly below sector average of 23.76x
High and stable dividend yield of 4.85%, well above sector and peer levels
Recent earnings momentum: 3 of last 4 quarters beat estimates, including +22.5% surprise in Q1 2024
Strong historical ROE of 136.88%, indicating efficient capital use despite current headwinds
Resilient end-market exposure in consumer staples, providing downside protection in downturns
Key Risks
Severe earnings contraction: YoY earnings growth of -50.2% signals deep profitability pressure
Aggressive leverage: Debt/Equity ratio of 5.00, well above sector average of 2.71 and peer CL (6.80)
Stagnant revenue growth: YoY revenue up only 0.10%, indicating pricing power exhaustion or volume decline
Deteriorating liquidity: Current Ratio of 0.77 and Quick Ratio of 0.37 suggest near-term cash flow vulnerability
High payout ratio of 84.60% raises sustainability concerns if earnings decline further
AI Fair Value Estimate
Based on comprehensive analysis
$128.62
+23.7% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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