Will Kimberly-Clark (KMB) Stock Be Impacted by Shuttering Venezuelan Operations?

Kimberly-Clark (KMB) said recent economic conditions have made it ‘impossible’ to continue business in Venezuela.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Kimberly-Clark (KMB) - Get Report  are up 0.15% to $136.16 this afternoon after the company announced it would close its operations in Venezuela.

Kimberly-Clark is an Irving, TX-based consumer producer of products like Kleenex and Huggies.

The company has struggled with rising inflation and a shortage of hard currency and raw materials in the South American country for years.

In a recent statement the company announced that due to a rapidly declining economic environment in the country, it had become "impossible" to continue their business there.

The Venezuelan government recently capped prices on many consumer basics below production costs, making many products scarce.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance.

TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

You can view the full analysis from the report here: KMB

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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