KIMBERLY-CLARK CORP's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KIMBERLY-CLARK CORP has very weak liquidity. Currently, the Quick Ratio is 0.48 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 84.98% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||4828.0||5305.0|
|Net Income ($mil)||-83.0||539.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||789.0||1054.0|
|Total Assets ($mil)||15526.0||18919.0|
|Total Debt ($mil)||6956.0||5761.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||38.19||38.55|
|Return on Assets||9.82||11.32|
|Return on Equity||202.46||44.11|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||365.3||380.8|
|Div / share||0.84||0.81|
|Book value / share||2.0||12.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1725766.0||1573678.0|
HOLD. KIMBERLY-CLARK CORP's P/E ratio indicates a premium compared to an average of 26.10 for the Household Products industry and a premium compared to the S&P 500 average of 19.36. For additional comparison, its price-to-book ratio of 55.95 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 18.46. 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 28.63||Peers 26.10||KMB 14.34||Peers 16.16|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
KMB is trading at a valuation on par with its peers.
Discount. 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 discount to its peers.
|KMB 17.47||Peers 21.75||KMB 0.55||Peers 4.28|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
KMB is trading at a discount to its peers.
Discount. 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 significant discount to its peers.
|KMB 55.95||Peers 18.46||KMB -29.61||Peers -1.75|
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 2.07||Peers 2.87||KMB -6.76||Peers -1.43|
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 significant 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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