Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- KMB's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 1.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KIMBERLY-CLARK CORP has improved earnings per share by 15.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, KIMBERLY-CLARK CORP increased its bottom line by earning $4.42 versus $3.99 in the prior year. This year, the market expects an improvement in earnings ($5.72 versus $4.42).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Household Products industry average. The net income increased by 13.5% when compared to the same quarter one year prior, going from $468.00 million to $531.00 million.
- Net operating cash flow has slightly increased to $607.00 million or 3.76% when compared to the same quarter last year. In addition, KIMBERLY-CLARK CORP has also modestly surpassed the industry average cash flow growth rate of 0.12%.
- 38.40% is the gross profit margin for KIMBERLY-CLARK CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.98% trails the industry average.
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional, and Health Care. Kimberly-Clark has a market cap of $40.0 billion and is part of the consumer goods sector and consumer non-durables industry. The company has a P/E ratio of 22.00, above the S&P 500 P/E ratio of 18.00. Shares are up 22.1% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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