Kimberly-Clark Corp

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KMB : NYSE : Consumer Goods
$118.12 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1479800.0
09/21/17 - 4:03 PM ET

Financial Analysis


KIMBERLY-CLARK CORP's gross profit margin for the second quarter of its fiscal year 2017 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 weak liquidity. Currently, the Quick Ratio is 0.56 which 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 47.95% 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 FY17 Q2 FY16
Net Sales ($mil)4554.04588.0
EBITDA ($mil)982.0995.0
EBIT ($mil)802.0818.0
Net Income ($mil)531.0566.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1051.0656.0
Total Assets ($mil)15070.014770.0
Total Debt ($mil)8023.07677.0
Equity ($mil)102.0196.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin40.0540.17
EBITDA Margin21.5621.68
Operating Margin17.6117.83
Sales Turnover1.211.24
Return on Assets14.2613.27
Return on Equity2106.861000.51
Debt Q2 FY17 Q2 FY16
Current Ratio0.920.98
Debt/Capital0.990.98
Interest Expense85.081.0
Interest Coverage9.4410.1


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)353.4359.7
Div / share0.970.92
EPS1.491.56
Book value / share0.290.54
Institutional Own % n/a n/a
Avg Daily Volume1463674.01655891.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.09 for the Household Products industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 418.68 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 59.99. The price-to-sales ratio is 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 20.21 Peers 25.09   KMB 13.88 Peers 18.30

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KMB 18.31 Peers 22.54   KMB 5.51 Peers 2.96

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KMB 418.68 Peers 59.99   KMB 11.15 Peers 17.37

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KMB 2.35 Peers 3.47   KMB -0.80 Peers -0.34

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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