Kimberly-Clark Corp

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KMB : NYSE : Consumer Goods
$129.51 up 0.11 | 0.09%
Today's Range: 129.11 - 129.81
Avg. Daily Volume: 1762200.0
05/26/17 - 4:02 PM ET

Financial Analysis


KIMBERLY-CLARK CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. KIMBERLY-CLARK CORP has weak liquidity. Currently, the Quick Ratio is 0.52 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.

During the same period, stockholders' equity ("net worth") has increased by 24.77% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)4483.04476.0
EBITDA ($mil)1017.01000.0
EBIT ($mil)839.0828.0
Net Income ($mil)563.0545.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)835.0635.0
Total Assets ($mil)14758.014820.0
Total Debt ($mil)7753.07903.0
Equity ($mil)136.0109.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.8240.46
EBITDA Margin22.6822.34
Operating Margin18.7218.5
Sales Turnover1.231.24
Return on Assets14.797.35
Return on Equity1605.881000.0
Debt Q1 FY17 Q1 FY16
Current Ratio0.870.96
Debt/Capital0.980.99
Interest Expense83.076.0
Interest Coverage10.1110.89


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)355.2360.2
Div / share0.970.92
EPS1.571.5
Book value / share0.380.3
Institutional Own % n/a n/a
Avg Daily Volume1774362.02040564.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.69 for the Household Products industry and a discount compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 338.04 indicates a significant premium versus the S&P 500 average of 3.06 and a significant premium versus the industry average of 55.14. 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 21.39 Peers 24.69   KMB 14.78 Peers 17.49

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 19.26 Peers 23.06   KMB 4.42 Peers 3.15

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 338.04 Peers 55.14   KMB 103.02 Peers 41.30

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 2.52 Peers 3.36   KMB -0.91 Peers -0.85

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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