📊 KMB Key Takeaways
Is Kimberly Clark Corp. (KMB) a Good Investment?
Kimberly Clark exhibits strong historical profitability margins and generates positive free cash flow, but faces concerning fundamentals deterioration with declining revenue (-2.1% YoY) and sharply declining EPS (-19.6% YoY). Critical structural vulnerabilities include severe overleveraging (3.61x D/E with 89.5% debt-financed assets) and weak liquidity ratios (0.77x current, 0.55x quick), creating substantial downside risk if business headwinds persist.
Kimberly-Clark shows solid core fundamentals with strong profitability, resilient free cash flow generation, and healthy interest coverage despite modest top-line pressure. However, the quality of growth is weak given declining revenue, net income softness, and a sharp EPS drop, while elevated leverage, thin liquidity, and very low equity make the balance sheet less forgiving. Overall, this looks like a stable but financially constrained business rather than a fundamentally improving one.
Kimberly Clark Corp. Key Strengths (KMB)
- Strong profitability: 16.0% net margin and 18.1% operating margin demonstrate pricing power and operational efficiency in core products
- Robust interest coverage at 13.0x provides substantial debt service capability despite high leverage
- Positive free cash flow of $321M generates capital for dividends and debt reduction in mature consumer staples business
- Strong profitability with 36.0% gross margin, 14.3% operating margin, and 12.3% net margin
- Consistent cash generation with $2.78B operating cash flow and $1.64B free cash flow
- Interest coverage of 9.2x indicates debt servicing remains manageable
KMB Stock Risks: Kimberly Clark Corp. Investment Risks
- Revenue and earnings deteriorating: -2.1% revenue decline and -19.6% EPS decline signal market share loss and demand headwinds in mature industry
- Dangerous leverage structure: 3.61x Debt/Equity with $6.5B debt against $1.8B equity; 89.5% debt-financed assets amplifies bankruptcy risk in downturn
- Acute liquidity stress: Current ratio of 0.77x and quick ratio of 0.55x (both below 1.0) indicate potential near-term cash constraints and refinancing risk
- Structural vulnerability: High fixed debt obligations ($6.5B long-term) combined with declining cash generation creates margin for error in business continuity
- Revenue declined 2.1% YoY and net income fell 1.4% YoY, indicating limited growth momentum
- EPS dropped 19.6% YoY, suggesting weaker per-share earnings quality than headline net income implies
- High leverage with 4.31x debt-to-equity, low current ratio of 0.75x, and very small equity base increase financial risk
Key Metrics to Watch
- Revenue growth trajectory - reversing the -2.1% YoY decline is critical to justify leverage levels
- Operating cash flow sustainability - must remain above $700M to service debt and maintain operations
- Debt/Equity ratio - must decline toward 2.5x or lower to reduce financial risk
- Current ratio - must improve above 1.0 to eliminate liquidity concerns
- Free cash flow and FCF margin
- Debt reduction progress and liquidity ratios
Kimberly Clark Corp. (KMB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KMB Profit Margin, ROE & Profitability Analysis
KMB vs Materials Sector: How Kimberly Clark Corp. Compares
How Kimberly Clark Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kimberly Clark Corp. Stock Overvalued? KMB Valuation Analysis 2026
Based on fundamental analysis, Kimberly Clark Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kimberly Clark Corp. Balance Sheet: KMB Debt, Cash & Liquidity
KMB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kimberly Clark Corp.'s revenue has declined by 12% over the 5-year period, indicating business contraction. The most recent EPS of $5.21 reflects profitable operations.
KMB Revenue Growth, EPS Growth & YoY Performance
KMB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.1B | $567.0M | $1.70 |
| Q3 2025 | $4.1B | $446.0M | $1.34 |
| Q2 2025 | $4.2B | $509.0M | $1.53 |
| Q1 2025 | $4.8B | $567.0M | $1.70 |
| Q3 2024 | $5.0B | $587.0M | $1.73 |
| Q2 2024 | $5.0B | $102.0M | $0.30 |
| Q1 2024 | $5.1B | $566.0M | $1.67 |
| Q3 2023 | $5.1B | $467.0M | $1.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kimberly Clark Corp. Dividends, Buybacks & Capital Allocation
KMB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kimberly Clark Corp. (CIK: 0000055785)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KMB
What is the AI rating for KMB?
Kimberly Clark Corp. (KMB) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KMB's key strengths?
Claude: Strong profitability: 16.0% net margin and 18.1% operating margin demonstrate pricing power and operational efficiency in core products. Robust interest coverage at 13.0x provides substantial debt service capability despite high leverage. ChatGPT: Strong profitability with 36.0% gross margin, 14.3% operating margin, and 12.3% net margin. Consistent cash generation with $2.78B operating cash flow and $1.64B free cash flow.
What are the risks of investing in KMB?
Claude: Revenue and earnings deteriorating: -2.1% revenue decline and -19.6% EPS decline signal market share loss and demand headwinds in mature industry. Dangerous leverage structure: 3.61x Debt/Equity with $6.5B debt against $1.8B equity; 89.5% debt-financed assets amplifies bankruptcy risk in downturn. ChatGPT: Revenue declined 2.1% YoY and net income fell 1.4% YoY, indicating limited growth momentum. EPS dropped 19.6% YoY, suggesting weaker per-share earnings quality than headline net income implies.
What is KMB's revenue and growth?
Kimberly Clark Corp. reported revenue of $4.2B.
Does KMB pay dividends?
Kimberly Clark Corp. pays dividends, with $418.0M distributed to shareholders in the trailing twelve months.
Where can I find KMB SEC filings?
Official SEC filings for Kimberly Clark Corp. (CIK: 0000055785) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KMB's EPS?
Kimberly Clark Corp. has a diluted EPS of $2.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KMB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Kimberly Clark Corp. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KMB stock overvalued or undervalued?
Valuation metrics for KMB: ROE of 37.0% (sector avg: 14%), net margin of 16.0% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is KMB's AI grade for 2026?
Our dual AI analysis gives Kimberly Clark Corp. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KMB's free cash flow?
Kimberly Clark Corp.'s operating cash flow is $745.0M, with capital expenditures of $424.0M. FCF margin is 7.7%.
How does KMB compare to other Materials stocks?
Vs Materials sector averages: Net margin 16.0% (avg: 10%), ROE 37.0% (avg: 14%), current ratio 0.77 (avg: 1.6).
Is Kimberly Clark Corp. carrying too much debt?
KMB has a debt-to-equity ratio of 3.61x, which is above the Materials sector average of 0.6x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is KMB's return on equity (ROE) so high?
Kimberly Clark Corp. has a return on equity of 37.0%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 16.0% net margin.