Last Updated: 13 Nov 2024
Executive Summary
Kimberly-Clark Corporation (KMB) is a leading global personal care company with a strong track record of profitability and dividend growth. The company's products are essential household items, providing it with a stable and recession-resistant business model. KMB's financial performance has been solid in recent quarters, with revenue and earnings growth driven by strong demand for its products and cost-cutting initiatives. The company's valuation is attractive compared to its peers, and analysts are generally positive on its long-term prospects.
Company Overview
Kimberly-Clark Corporation is an American multinational personal care corporation that produces mostly paper-based consumer products. The company manufactures sanitary paper products and surgical & medical instruments. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes and Huggies disposable diapers and baby wipes.
Fundamental Analysis
Revenue and Earnings: KMB's revenue has grown at a steady pace in recent years, driven by strong demand for its products and acquisitions. The company's earnings have also grown, benefiting from cost-cutting initiatives and operating leverage.
Margins: KMB's profit margins are healthy and have improved in recent quarters. The company's gross margin is 30.9%, and its operating margin is 15.2%.
Balance Sheet: KMB has a strong balance sheet with low debt and ample liquidity. The company's debt-to-equity ratio is 0.33, and its current ratio is 1.25.
Valuation: KMB's valuation is attractive compared to its peers. The company's trailing price-to-earnings (PE) ratio is 17.26, and its forward PE ratio is 17.51.
Technical Analysis
Trend: KMB's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock's immediate support level is at $130, and its immediate resistance level is at $135.
Momentum: The stock's momentum is currently negative. The relative strength index (RSI) is below 50, and the moving average convergence divergence (MACD) is below zero.
Short Term Outlook
In the short term, KMB's stock price is likely to remain under pressure due to the overall market sell-off. The stock could test its support level at $130 in the coming weeks. However, if the market stabilizes, KMB's stock could rebound and move towards its resistance level at $135.
Long Term Outlook
In the long term, KMB's prospects are positive. The company's strong brands, global reach, and cost-cutting initiatives should drive continued growth in revenue and earnings. The company's valuation is attractive, and analysts are generally positive on its long-term prospects.
Analyst Recommendations
The majority of analysts have a "Buy" or "Strong Buy" rating on KMB's stock. The average analyst target price is $150.77, which represents a potential upside of 14% from the current price.
