Kimberly-Clark Corporation (KMB) AI Stock Analysis

Kimberly-Clark Corporation manufactures and distributes personal care and consumer tissue products globally across three operating segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment provides disposable diapers, wipes, feminine care, and adult incontinence products under brands including Huggies, Pull-Ups, Kotex, Poise, and Depend. The Consumer Tissue segment offers facial and bathroom tissues, paper towels, and napkins through Kleenex, Scott, Cottonelle, and Viva. K-C Professional delivers wipers, towels, apparel, soaps, and sanitizers to commercial clients under Kleenex, Scott, and Kimtech brands. Founded in 1872, the company sells via supermarkets, mass merchandisers, drugstores, warehouse clubs, and digital platforms.

Revenue has contracted over recent years, posting a 5-year CAGR of -2.1% from FY2020 through FY2025. Annual sales rose from $19.44B in FY2021 to $20.43B in FY2023, before sliding 1.8% to $20.06B in FY2024 and declining 14.2% to $17.22B in FY2025. Despite top-line pressure, gross margin expanded from 30.8% in FY2021 to 35.6% in FY2025, while operating margin improved from 13.2% to 14.5%. Net income reached $2.02B in FY2025 with diluted EPS of $7.53, supported by cost discipline. For the latest quarter ended June 30, 2026, quarterly revenue grew 0.6% year-over-year, while quarterly earnings contracted 32.3% year-over-year, bringing trailing twelve-month revenue to $16.58B.

As of June 30, 2026, Kimberly-Clark held $956.0M in cash and short-term investments against $6.52B in total debt, resulting in net debt of $5.56B. The balance sheet reflects a debt-to-equity ratio of 3.72 and a current ratio of 0.91, alongside shareholders' equity of $1.75B and total assets of $18.55B. In FY2025, the company generated $2.78B in operating cash flow and $1.64B in free cash flow. Capital allocation prioritized returns to shareholders, directing $1.66B to dividends paid and $141.0M to share buybacks, while capital expenditures totaled $1.14B.

Kimberly-Clark trades at a trailing P/E of 20.8x and a forward P/E of 13.1x, which compares to medians of 23.5x and 15.3x, respectively, for the median of its S&P 500 Consumer Defensive peers. Its enterprise value of $38.46B translates to an EV/EBITDA of 12.0x, below the peer group median of 14.8x, while its price-to-sales multiple of 2.1x sits above the peer median of 1.6x. Over the past year, KMB delivered a return of -7.3%, lagging the 16.8% return of the S&P 500 (SPY). Over a 5-year period, the stock returned -3.8% versus 83.0% for the broader index.

Kimberly-Clark provides a forward annual dividend of $5.12 per share, representing a dividend yield of 4.85% with a payout ratio of 68.5%. The company distributes dividends quarterly and has paid dividends for 42 consecutive years. Its 5-year annualized dividend growth rate stands at 3.3%, and the most recent ex-dividend date was September 4, 2026.

Wall Street analysts hold a mixed outlook on Kimberly-Clark, with 4 Strong Buy, 3 Buy, 8 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $114.80, representing an 8.7% upside relative to the last close of $105.57. For the fiscal year ending December 31, 2026, analysts estimate revenue of $16.59B and EPS of $7.37. The company has beaten EPS expectations in 3 of the last 4 quarters, with its next earnings announcement scheduled for November 5, 2026.

This page is an AI-written research summary of Kimberly-Clark Corporation (KMB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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