KIMBERLY-CLARK CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. KIMBERLY-CLARK CORP has very weak liquidity. Currently, the Quick Ratio is 0.46 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 95.86% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||4691.0||4887.0|
|Net Income ($mil)||468.0||538.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||587.0||1165.0|
|Total Assets ($mil)||15053.0||19002.0|
|Total Debt ($mil)||7731.0||6312.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||39.78||38.65|
|Return on Assets||9.67||11.3|
|Return on Equity||757.51||44.83|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||364.3||377.2|
|Div / share||0.88||0.84|
|Book value / share||0.53||12.38|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1825715.0||1657201.0|
HOLD. KIMBERLY-CLARK CORP's P/E ratio indicates a premium compared to an average of 24.46 for the Household Products industry and a premium compared to the S&P 500 average of 20.50. For additional comparison, its price-to-book ratio of 213.61 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 37.28. 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 28.94||Peers 24.46||KMB 16.93||Peers 15.68|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
KMB is trading at a premium to its peers.
Average. 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 valuation on par to its peers.
|KMB 18.49||Peers 21.42||KMB 0.63||Peers 1.51|
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.
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 213.61||Peers 37.28||KMB -28.13||Peers 27.71|
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 2.11||Peers 2.80||KMB -5.76||Peers -2.28|
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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