📊 KMB Key Takeaways
Is Kimberly Clark Corp. (KMB) a Good Investment?
Kimberly-Clark demonstrates solid operational fundamentals with strong profitability margins (12.3% net margin) and robust free cash flow generation ($1.6B), supporting consistent dividends. However, revenue contraction (-2.1% YoY) combined with elevated financial leverage (4.31x Debt/Equity) and weak liquidity metrics (0.75x current ratio) present structural concerns that limit near-term upside.
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.
Why Buy Kimberly Clark Corp. Stock? KMB Key Strengths
- Strong and consistent free cash flow generation ($1.6B, 10% FCF margin) supporting shareholder returns
- Healthy operating margins (14.3%) and net profitability (12.3% net margin) demonstrating pricing power and cost discipline
- Adequate interest coverage (9.2x) indicates manageable debt servicing despite high leverage
- Exceptional ROE (134.6%) reflects efficient capital deployment despite capital structure constraints
- 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 declining YoY (-2.1%) signals potential market share loss, category saturation, or competitive pressure in consumer paper products
- High debt-to-equity ratio (4.31x) with $6.5B long-term debt limits financial flexibility and refinancing risk exposure
- Weak liquidity position (current ratio 0.75x, quick ratio 0.54x) indicates reliance on operating cash flows and potential working capital stress
- Diluted EPS decline of 19.6% YoY outpaces modest net income decline, suggesting share buyback program masking earnings pressure
- 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
- Quarterly revenue trends and organic growth rates to assess whether market contraction is stabilizing
- Debt reduction progress and leverage trajectory toward more sustainable levels
- Free cash flow consistency and dividend coverage ratio amid revenue headwinds
- Gross margin sustainability as input costs and pricing dynamics evolve
- 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $5.1B | $102.0M | $0.30 |
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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KMB's key strengths?
Claude: Strong and consistent free cash flow generation ($1.6B, 10% FCF margin) supporting shareholder returns. Healthy operating margins (14.3%) and net profitability (12.3% net margin) demonstrating pricing power and cost discipline. 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 declining YoY (-2.1%) signals potential market share loss, category saturation, or competitive pressure in consumer paper products. High debt-to-equity ratio (4.31x) with $6.5B long-term debt limits financial flexibility and refinancing risk exposure. 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 $16.4B.
Does KMB pay dividends?
Kimberly Clark Corp. pays dividends, with $1,660.0M 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 $6.07.
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 rating reflects both perspectives for balanced insights.
Is KMB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kimberly Clark Corp. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KMB stock overvalued or undervalued?
Valuation metrics for KMB: ROE of 134.6% (sector avg: 14%), net margin of 12.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy KMB stock in 2026?
Our dual AI analysis gives Kimberly Clark Corp. a combined HOLD rating 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 $2.8B, with capital expenditures of $1.1B. FCF margin is 10.0%.
How does KMB compare to other Materials stocks?
Vs Materials sector averages: Net margin 12.3% (avg: 10%), ROE 134.6% (avg: 14%), current ratio 0.75 (avg: 1.6).
Is Kimberly Clark Corp. carrying too much debt?
KMB has a debt-to-equity ratio of 4.31x, 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 134.6%, 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 12.3% net margin.