Kimberly-Clark Corp

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KMB : NYSE : Consumer Goods
$132.265 -0.27 | -0.2%
Today's Range: 131.94 - 132.895
Avg. Daily Volume: 2112400.0
03/30/17 - 3:59 PM ET

Financial Analysis


KIMBERLY-CLARK CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. KIMBERLY-CLARK CORP has weak liquidity. Currently, the Quick Ratio is 0.53 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 greatly increased by 41.37% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)4544.04539.0
EBITDA ($mil)1054.0983.0
EBIT ($mil)877.0802.0
Net Income ($mil)505.0333.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)923.0619.0
Total Assets ($mil)14602.014842.0
Total Debt ($mil)7572.07775.0
Equity ($mil)-102.0-174.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin40.8940.03
EBITDA Margin23.1921.65
Operating Margin19.317.67
Sales Turnover1.251.25
Return on Assets14.836.82
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio0.880.85
Debt/Capital1.011.02
Interest Expense81.076.0
Interest Coverage10.8310.55


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)356.57360.86
Div / share0.920.88
EPS1.40.91
Book value / share-0.29-0.48
Institutional Own % n/a n/a
Avg Daily Volume2046187.01912373.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 26.76 for the Household Products industry and a discount compared to the S&P 500 average of 26.33. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, KIMBERLY-CLARK CORP proves to trade 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 22.25 Peers 26.76   KMB 14.68 Peers 17.62

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 19.71 Peers 23.68   KMB 4.60 Peers 3.47

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 NM Peers 10.71   KMB 117.45 Peers 262.05

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KMB's P/B is negative making this valuation measure meaningless.

 

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 2.61 Peers 3.44   KMB -2.10 Peers -2.08

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 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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