KMB Stock Risk & Deep Value Analysis
Kimberly-Clark Corp
Consumer Defensive • Household & Personal Products
DVR Score
out of 10
What You Need to Know About KMB Stock
We analyzed Kimberly-Clark Corp using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran KMB through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Conservative. Here's what we found.
KMB Risk Analysis & Red Flags
What Could Go Wrong
While KMB is stable, a significant and prolonged global economic downturn could lead to consumers trading down to cheaper private label brands, impacting KMB's premium product sales and margins.
Risk Matrix
Overall
Conservative
Financial
Low
Market
Low
Competitive
Medium
Execution
Low
Regulatory
Low
Red Flags
- ⚠
Lack of organic revenue growth potential due to market maturity
- ⚠
High reliance on brand strength in a market susceptible to price competition
- ⚠
Volatility in raw material costs (e.g., pulp, energy) can compress margins
Upcoming Risk Events
- 📅
Commodity price inflation impacting gross margins
- 📅
Intensified competition from private label brands
When to Reconsider
- 🚪
Sustained decline in organic sales growth for consecutive quarters
- 🚪
Significant and consistent erosion of gross or operating margins
- 🚪
Dividend cut or reduced share repurchase program
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What Does Kimberly-Clark Corp (KMB) Do?
Market Cap
$32.29B
Sector
Consumer Defensive
Industry
Household & Personal Products
Employees
38,000
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care products in the United States. It operates through three segments: North America, International Personal Care, and International Family Care and Professional. The company North America segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers, and other related products under the Huggies, Pull-Ups, GoodNites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall, and other brand names. The International Personal Care segment provides baby and child care, adult care and feminine care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Kotex, Goodfeel, Intimus, Depend and other brand names. The International Family Care and Professional segment offers facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers, and other related products under the Kleenex, Scott, Viva, Andrex, Scottex, Wypall, and other brand names. It also 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 professional use products directly to distributors, manufacturing, lodging, office building, food service, and public facilities, as well as through e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.
Visit Kimberly-Clark Corp WebsiteInvestment Thesis
Kimberly-Clark is a defensive, income-generating investment offering stability and consistent returns, primarily through dividends and modest capital appreciation. It's well-suited for conservative portfolios seeking exposure to essential consumer goods, leveraging its wide moat and global brand strength, but it lacks the catalysts for 10x growth potential.
Is KMB Stock Undervalued?
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KMB Price Targets & Strategy
12-Month Target
$100.00
Bull Case
$108.00
Bear Case
$92.00
Valuation Basis
Based on 20x forward P/E applied to estimated FY26 EPS of $4.96 (derived from implied TTM EPS from previous P/E of 19.78).
Entry Strategy
Dollar-cost average around current levels if seeking a stable dividend-payer, or on dips towards the 200-day SMA (if tracking near $95-$96).
Exit Strategy
Take profit above $105, consider re-evaluation if sustained price action below $90 or significant competitive pressure emerges.
Portfolio Allocation
1-3% for moderate risk tolerance (as a defensive, income-oriented holding).
Price Targets & Strategy
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Is KMB Financially Healthy?
Valuation
P/E Ratio
15.98
Forward P/E
21.83
EV/EBITDA
23.25
PEG Ratio
55.29
Price/Book
9.96
Price/Sales
2.53
Profitability
Gross Margin
36.91%
Operating Margin
14.43%
Net Margin
11.73%
Return on Equity
155.28%
Revenue Growth
-14.08%
EPS
$6.06
Balance Sheet
Current Ratio
0.75
Quick Ratio
0.50
Debt/Equity
4.79
Total Debt
$7.03B
Cash & Equivalents
$1.45B
Cash Flow
Operating Cash Flow
$5.31B
Free Cash Flow
-$365.00M
EBITDA
$9.33B
Other
Beta (Volatility)
0.32
Dividend Yield
5.26%
Does KMB Have a Competitive Moat?
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🏰 Wide
Moat Trend
Stable
Moat Sources
3 Identified
KMB's moat is highly durable due to the essential, repeat-purchase nature of its products and the deeply ingrained brand loyalty built over decades. Consumers often stick to trusted brands for hygiene products.
Moat Erosion Risks
- •Rising market share of lower-priced private label brands, particularly in economic downturns
- •Rapid shifts in consumer preferences towards niche or unbranded sustainable alternatives
KMB Competitive Moat Analysis
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KMB Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (primarily due to its status as a stable, non-speculative stock)
Institutional Sentiment
Neutral (typically a core holding for stability, but few major upgrades/downgrades expected without fundamental shifts)
Insider Activity (Form 4)
No insider trading data (Form 4 filings) available in search results for the last 90 days.
Options Flow
Normal options activity (no unusual directional bets or high volumes reported)
Earnings Intelligence
Next Earnings
2026-04-28
Surprise Probability
Medium
Historical Earnings Pattern
KMB typically sees modest price movements following earnings, with stability often rewarded and any significant miss on guidance leading to minor pullbacks.
Key Metrics to Watch
Competitive Position
Top Competitor
PG
Market Share Trend
Stable
Valuation vs Peers
Generally trades at a valuation (P/E, EV/EBITDA) in line with or at a slight discount to market leader Procter & Gamble, reflecting its strong but less diversified portfolio.
Competitive Advantages
- •Strong global brand recognition and loyalty
- •Extensive global distribution networks
- •Economies of scale in manufacturing and procurement
Market Intelligence
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What Could Drive KMB Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings on 2026-04-28
- •Ongoing cost-saving initiatives and supply chain optimization
Medium-Term (6-18 months)
- •Further expansion in emerging markets for personal care products
- •Potential product innovations in sustainability or premium segments
Long-Term (18+ months)
- •Continued strength of global essential goods demand
- •Adaptation to evolving consumer preferences (e.g., eco-friendly products)
Catalysts & Growth Drivers
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What's the Bull Case for KMB?
- ✓
Consistent positive organic sales growth (even if low single-digit)
- ✓
Stability or expansion of gross margins despite commodity fluctuations
Bull Case Analysis
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Competing with KMB
See how Kimberly-Clark Corp compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Kimberly-Clark Corp KMB | $32.3B | 0.5 | 16.0 | $16.4B | 11.7% | -14.1% | |
Costco Wholesale Corp COST | — | 0.7 | — | — | — | — | Compare → |
Coca-Cola Co KO | $324.9T | 0.4 | 3.1 | $47.9B | 27.3% | 1.9% | Compare → |
PepsiCo Inc PEP | — | 0.1 | — | — | — | — | Compare → |
Procter & Gamble Co PG | — | 0.2 | — | — | — | — | Compare → |
Walmart Inc WMT | $1.0T | 0.7 | 46.2 | $713.2B | 3.1% | 4.7% | Compare → |
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How Kimberly-Clark Corp Makes Money
Kimberly-Clark manufactures and markets a diverse portfolio of essential, everyday consumer products globally. It operates through three main segments: Personal Care (diapers, wipes, feminine hygiene), Consumer Tissue (facial tissue, bathroom tissue, paper towels), and K-C Professional (away-from-home products for businesses). The company generates revenue by selling these branded products through retail channels, institutions, and businesses worldwide, capitalizing on strong brand recognition and extensive distribution networks.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Kimberly-Clark Corp (KMB)?
As of April 13, 2026, Kimberly-Clark Corp has a DVR Score of 0.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Kimberly-Clark Corp?
Kimberly-Clark Corp's market capitalization is approximately $32.3B. The company operates in the Consumer Defensive sector within the Household & Personal Products industry.
What ticker symbol does Kimberly-Clark Corp use?
KMB is the ticker symbol for Kimberly-Clark Corp. The company trades on the NMS.
What is the risk level for KMB stock?
Our analysis rates Kimberly-Clark Corp's overall risk as Conservative. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of KMB?
Kimberly-Clark Corp currently has a price-to-earnings (P/E) ratio of 16.0. This is in line with broader market averages.
Does Kimberly-Clark Corp pay a dividend?
Yes, Kimberly-Clark Corp pays a dividend with a current yield of approximately 5.26%.
Is Kimberly-Clark Corp's revenue growing?
Kimberly-Clark Corp has reported revenue growth of -14.1%. Revenue has been declining, which warrants closer examination.
Is KMB stock profitable?
Kimberly-Clark Corp has a profit margin of 11.7%. The company is profitable but margins are modest.
How often is the KMB DVR analysis updated?
Our AI-powered analysis of Kimberly-Clark Corp is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 13, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for KMB (Kimberly-Clark Corp) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.