KIMBERLY-CLARK CORP's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. KIMBERLY-CLARK CORP has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 88.81% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||4643.0||4953.0|
|Net Income ($mil)||-305.0||509.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||603.0||1369.0|
|Total Assets ($mil)||15346.0||19377.0|
|Total Debt ($mil)||7599.0||6555.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||39.91||37.69|
|Return on Assets||4.18||11.0|
|Return on Equity||127.13||44.82|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||364.3||374.0|
|Div / share||0.88||0.84|
|Book value / share||1.42||12.34|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1399628.0||1550292.0|
HOLD. KIMBERLY-CLARK CORP's P/E ratio indicates a significant premium compared to an average of 28.75 for the Household Products industry and a significant premium compared to the S&P 500 average of 20.03. For additional comparison, its price-to-book ratio of 76.06 indicates a significant premium versus the S&P 500 average of 2.67 and a significant premium versus the industry average of 38.38. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, KIMBERLY-CLARK CORP proves to trade at a premium to investment alternatives within the industry.
|KMB 61.56||Peers 28.75||KMB 16.47||Peers 14.96|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
KMB is trading at a significant premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
KMB is trading at a premium to its peers.
|KMB 17.31||Peers 19.89||KMB 1.29||Peers 1.36|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
KMB is trading at a valuation on par with its peers.
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
KMB trades at a valuation on par to its peers.
|KMB 76.06||Peers 38.38||KMB -67.60||Peers -17.26|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
KMB is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, KMB is expected to significantly trail its peers on the basis of its earnings growth rate.
|KMB 2.04||Peers 2.62||KMB -5.83||Peers -4.14|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
KMB is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
KMB significantly trails its peers on the basis of sales growth
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