Kimberly-Clark Corp

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KMB : NYSE : Consumer Goods
$125.22 -1.26 | -1.00%
Today's Range: 125.05 - 126.50
Avg. Daily Volume: 1,598,900
09/29/16 - 4:01 PM ET

Financial Analysis


KIMBERLY-CLARK CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. KIMBERLY-CLARK CORP has weak liquidity. Currently, the Quick Ratio is 0.56 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 62.01% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)4588.04643.0
EBITDA ($mil)995.0989.0
EBIT ($mil)818.0800.0
Net Income ($mil)566.0-305.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)656.0603.0
Total Assets ($mil)14770.015346.0
Total Debt ($mil)7677.07599.0
Equity ($mil)196.0516.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin40.1739.91
EBITDA Margin21.6821.3
Operating Margin17.8317.23
Sales Turnover1.241.25
Return on Assets13.274.18
Return on Equity1000.51127.13
Debt Q2 FY16 Q2 FY15
Current Ratio0.980.82
Debt/Capital0.980.94
Interest Expense81.073.0
Interest Coverage10.110.96


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)359.7364.3
Div / share0.920.88
EPS1.56-0.84
Book value / share0.541.42
Institutional Own % n/a n/a
Avg Daily Volume1628424.01725791.0

Valuation


BUY. KIMBERLY-CLARK CORP's P/E ratio indicates a discount compared to an average of 29.09 for the Household Products industry and a value on par with the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 233.54 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 38.82. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, KIMBERLY-CLARK CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KMB 23.65 Peers 29.09   KMB 15.62 Peers 16.61

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KMB is trading at a discount 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KMB 19.51 Peers 23.52   KMB 0.20 Peers 1.78

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KMB 233.54 Peers 38.82   KMB 209.19 Peers 36.89

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KMB is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KMB 2.50 Peers 3.48   KMB -4.67 Peers -4.99

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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