Kimberly-Clark Corporation
Kimberly-Clark Corporation Fundamental Analysis
Kimberly-Clark Corporation (KMY.DE) shows weak financial fundamentals with a PE ratio of 15.63, profit margin of 11.74%, and ROE of 1.55%. The company generates $17.2B in annual revenue with weak year-over-year growth of -1.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KMY.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKMY.DE demonstrates superior asset utilization.
Valuation Score
ModerateKMY.DE shows balanced valuation metrics.
Growth Score
ModerateKMY.DE shows steady but slowing expansion.
Financial Health Score
WeakKMY.DE carries high financial risk with limited liquidity.
Profitability Score
ModerateKMY.DE maintains healthy but balanced margins.
Key Financial Metrics
Is KMY.DE Expensive or Cheap?
P/E Ratio
KMY.DE trades at 15.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KMY.DE's PEG of 5.01 indicates potential overvaluation.
Price to Book
The market values Kimberly-Clark Corporation at 21.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.07 times EBITDA. This is generally considered low.
How Well Does KMY.DE Make Money?
Net Profit Margin
For every $100 in sales, Kimberly-Clark Corporation keeps $11.74 as profit after all expenses.
Operating Margin
Core operations generate 14.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.55 in profit for every $100 of shareholder equity.
ROA
Kimberly-Clark Corporation generates $11.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kimberly-Clark Corporation produces operating cash flow of $2.78B, showing steady but balanced cash generation.
Free Cash Flow
Kimberly-Clark Corporation generates strong free cash flow of $2.38B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.17 in free cash annually.
FCF Yield
KMY.DE converts 7.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.55
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How KMY.DE Stacks Against Its Sector Peers
| Metric | KMY.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.63 | 22.46 | Better (Cheaper) |
| ROE | 155.28% | 1260.00% | Weak |
| Net Margin | 11.74% | -5313.00% (disorted) | Strong |
| Debt/Equity | 4.77 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.75 | 2.49 | Weak Liquidity |
| ROA | 11.82% | -193380.00% (disorted) | Strong |
KMY.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kimberly-Clark Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.84%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
20.30%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
20.52%
Industry Style: Defensive, Dividend, Low Volatility
High Growth