Download PDF

1. Company Snapshot

1.a. Company Description

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide.It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional.The Personal Care segment offers disposable diapers, swimpants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names.


The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names.The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.The company sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to manufacturing, lodging, office building, food service, and public facilities, as well as through distributors and e-commerce.


Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.

Show Full description

1.b. Last Insights on KMB

Kimberly-Clark Corporation faces challenges, including currency and cost pressures, ahead of its Q3 results. The company's merger with Kenvue Inc. is under investigation by Halper Sadeh LLC, which may be perceived as a negative event. Additionally, despite solid volume gains and cost discipline, KMB's Q3 results highlight ongoing margin pressures. A significant sell-off following the merger announcement wiped out approximately $5.8 billion in market value, potentially reflecting investor concerns about the deal's fairness and impact on shareholder value.

1.c. Company Highlights

2. Kimberly-Clark Beats Expectations with Strong Q4 2025 Earnings

Kimberly-Clark reported a strong fourth quarter in 2025, with actual EPS coming in at $1.86, beating analyst estimates of $1.81. The company's execution of its "Powering Care" strategy drove significant results, despite a dynamic external environment. Revenue growth was in line with expectations, and the company's focus on innovation and brand building contributed to its success. The company's gross margin expansion was a notable highlight, with the management team reiterating their confidence in achieving their 40% gross margin target by 2030.

Publication Date: Feb -02

📋 Highlights
  • 40% Future Adjusted Gross Margin Target: Driven by innovation, cost discipline, and portfolio optimization, with progress slightly ahead of original plans.
  • 100 Basis Points Share Gain in Diapers: Achieved in Q4 2025, with consecutive two-year share growth in key markets like China, Brazil, and Indonesia.
  • 60 Basis Points Distribution Loss Headwind: Anticipated for 2026, factored into full-year outlook despite category resilience and stable demand.
  • 26% Guidance for 2026: Reflects category growth of ~2% globally, with international markets and premiumization driving volume and margin gains.
  • 7-Point International Margin Gap: Highlighted as growth opportunity, with focus on premium segment expansion and productivity to close the North America vs. international gap.

Segment Performance

The company's diaper category performance was particularly strong, with a 100 basis point share gain in the fourth quarter, marking the second consecutive year of share growth. The company's international business also showed significant improvement, with notable gains in China, Indonesia, Korea, Australia, and Brazil. Management noted that developing the premium segment in international geographies is a significant opportunity for growth.

Guidance and Outlook

Kimberly-Clark guided for 2% category growth in 2026, with expectations for steady growth throughout the year. The company is confident in its ability to drive volume and mix-led growth ahead of the category, driven by innovation and premiumization. Analysts estimate revenue growth of 2.5% for the next year, which is slightly higher than the company's guidance.

Valuation

At current levels, Kimberly-Clark trades at a P/E Ratio of 16.48, P/B Ratio of 20.43, and EV/EBITDA of 12.43. The company's Dividend Yield stands at 5.04%, providing a relatively attractive return for income investors. With an ROE of 151.56% and ROIC of 18.83%, the company has demonstrated its ability to generate strong returns on equity and capital. The current valuation multiples suggest that the market has priced in a certain level of growth and profitability, but the company's strong track record and guidance suggest that it may be able to continue to deliver on its promises.

Acquisition and Regulatory Update

The company is awaiting the shareholder vote for the Kenview acquisition, which is scheduled to take place on the 29th of this month. Management is confident in the regulatory process and expects the acquisition to close in the second half of the year. The acquisition is expected to contribute to the company's growth and margin expansion in the long term.

3. NewsRoom

Card image cap

2 of the Safest Ultra-High-Yield Dividend Stocks to Buy Right Now

01:05

Source: fool.com

Card image cap

Mutual Advisors LLC Purchases 22,412 Shares of Kimberly-Clark Corporation $KMB

Feb -02

Source: defenseworld.net

Card image cap

All It Takes Is $13,000 Invested in Each of These 2 Dividend Kings to Help Generate $1,000 in Passive Income in 2026

Feb -01

Source: fool.com

Card image cap

1 Super-Safe High-Yield Dividend King Stock to Buy Even if There's a Stock Market Sell-Off in 2026

Jan -31

Source: fool.com

Card image cap

Kimberly-Clark Corporation $KMB Shares Sold by Bank of New York Mellon Corp

Jan -30

Source: defenseworld.net

Card image cap

AE Wealth Management LLC Buys 10,528 Shares of Kimberly-Clark Corporation $KMB

Jan -30

Source: defenseworld.net

Card image cap

Kimberly-Clark Q4 Earnings Call Highlights

Jan -30

Source: defenseworld.net

Card image cap

10 Highest Rated Dividend Kings For Generations Of Income

Jan -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.39%)

6. Segments

North America

Expected Growth: 2.2%

North America's growth of 2.2% for Kimberly-Clark Corporation is driven by increased demand for consumer staples, pricing strategies, and market share gains in tissue and hygiene products. Operational efficiency and cost savings also contribute to this growth, reflecting the segment's resilience and effective management in a competitive market.

International Personal Care

Expected Growth: 2.5%

Kimberly-Clark's International Personal Care segment growth of 2.5% is driven by increased demand for hygiene products, expansion in emerging markets, and successful product innovations. The company benefits from a strong brand portfolio, including Huggies and Kotex, and strategic pricing initiatives. Operational efficiency and cost management also contribute to the segment's growth.

International Family Care & Professional

Expected Growth: 2.8%

The 2.8% growth in International Family Care & Professional segment of Kimberly-Clark Corporation is driven by increased demand for hygiene products, expansion into emerging markets, and premiumization of products. Additionally, strategic pricing and cost-saving initiatives have contributed to the segment's growth, reflecting the company's ability to adapt to changing consumer needs and maintain market share.

7. Detailed Products

Huggies Diapers and Wipes

Huggies offers a range of diapers and wipes for babies and toddlers, providing absorbency and comfort for little ones.

Scott Tissues

Scott Tissues provides a variety of paper products, including toilet paper, paper towels, and tissues for household use.

Kleenex Facial Tissues

Kleenex offers a range of facial tissues for blowing noses, wiping away tears, and cleaning up small messes.

Cottonelle Toilet Paper

Cottonelle provides a range of toilet paper products, offering comfort, absorbency, and durability for bathroom use.

U by Kotex Feminine Care Products

U by Kotex offers a range of feminine care products, including pads, tampons, and liners, designed for women's hygiene and comfort.

All Good and Depend Adult Diapers

All Good and Depend offer a range of adult diapers and incontinence products, providing comfort, absorbency, and dignity for adults with bladder or bowel issues.

8. Kimberly-Clark Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Kimberly-Clark Corporation operates in the consumer goods industry, specifically in the production of personal care and hygiene products. While there are substitutes available for some of its products, such as cloth diapers instead of disposable ones, the convenience and widespread use of its products make the threat of substitutes moderate. Consumers are generally loyal to brands they trust, and Kimberly-Clark's strong brand portfolio mitigates this threat.

Bargaining Power Of Customers

The bargaining power of customers for Kimberly-Clark Corporation is relatively low. The company sells its products to a wide range of customers, including large retailers, wholesalers, and consumers directly. No single customer accounts for a significant portion of its revenue, which limits their ability to negotiate prices or terms significantly.

Bargaining Power Of Suppliers

Kimberly-Clark Corporation sources raw materials such as pulp, cotton, and chemicals from various suppliers. While it has a significant volume of purchases, which can give it some bargaining power, the suppliers in the industry are numerous, and the company has strategies in place to manage costs and ensure supply. The bargaining power is thus medium.

Threat Of New Entrants

The threat of new entrants in the consumer goods industry, particularly in personal care and hygiene products, is high. The barriers to entry are relatively low, as new companies can be formed with innovative products or business models. Additionally, the market for these products is well-established, attracting new entrants. However, Kimberly-Clark's strong brand recognition and extensive distribution network act as deterrents.

Intensity Of Rivalry

The consumer goods industry, specifically the personal care and hygiene products segment, is highly competitive. Kimberly-Clark Corporation competes with major players like Procter & Gamble, Unilever, and Colgate-Palmolive. The competition is intense due to the similarity of products, high advertising and marketing expenses, and constant innovation. This intense rivalry drives companies to continuously improve and differentiate their offerings.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 90.02%
Debt Cost 4.35%
Equity Weight 9.98%
Equity Cost 6.37%
WACC 4.55%
Leverage 901.67%

11. Quality Control: Kimberly-Clark Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kimberly-Clark

A-Score: 5.5/10

Value: 4.3

Growth: 4.3

Quality: 6.1

Yield: 8.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Procter & Gamble

A-Score: 5.4/10

Value: 3.0

Growth: 4.4

Quality: 7.5

Yield: 5.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Colgate-Palmolive

A-Score: 5.2/10

Value: 3.1

Growth: 4.8

Quality: 6.7

Yield: 5.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Church & Dwight Co

A-Score: 4.9/10

Value: 2.7

Growth: 4.9

Quality: 6.9

Yield: 3.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Kenvue

A-Score: 4.5/10

Value: 4.1

Growth: 3.3

Quality: 6.1

Yield: 8.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Estee Lauder

A-Score: 3.6/10

Value: 3.1

Growth: 1.7

Quality: 2.4

Yield: 2.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

99.5$

Current Price

99.5$

Potential

-0.00%

Expected Cash-Flows