NYSE:KMB
$59.65
(2/9 1:58PM)
+1.2%
| Open | $59.46 |
Mkt Cap | $24.5 Billion |
| High | $59.95 |
52Wk High | $67.03 |
| Low | $59.06 |
52Wk Low | $43.05 |
| Volume | 1.2 Million |
Avg Vol 10D | 3.4 Million |
Ockham's Rating/Recommendation Summary
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KMB Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, KMB the high and low end of the Price to Sales per share ratios are 1.91x and 1.46x respectively.
Notice that KMB's current Price to Sales per share ratio is 1.28x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $58.96, KMB is 25% below where we would expect to see it. This will beneficially factor into our final analysis of KMB as it is not often that this stock sinks to these levels.
KMB Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of KMB, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for KMB, the current level of Cash Earnings compared to its historical levels helps identify where KMB is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 13.13 and a historical low Cash Earnings per share ratio of 10.01, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for KMB? From the Ockham perspective, we are looking specifically at KMB to see if the market is recognizing the huge disparity between KMB's past stock price to Cash Earnings ratio to today's levels. At a difference of 18% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at KMB. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
KMB Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for KMB to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for KMB is $2.40 producing a current dividend yield of 4.07%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from KMB against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from KMB over previous years was 5.57% while the lowest dividend yield was 1.56%. Management at KMB has encouraged us with a current dividend yield of 14.17% above the historical median.
KMB Gets Mentioned in the Financial Media
The latest news from Mad Money on KMB is available through Ockham's news analytics platform RazorWire.
Based on our methodology, Kimberly-Clark Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; KMB has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… I like that general dynamics, i'm looking at that one. No, KIMBERLY-CLARK, am I kidding? And you got to make a change and …”
Dividends and Kimberly-Clark Corporation Among the Topics Covered on Mad Money
If KMB's dividends are important to you, take a look at the news as they were the topic of conversation on Mad Money.
Based on our methodology, Kimberly-Clark Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; KMB has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… self-my charitable trust owns it. KIMBERLY-CLARK, 4% yield, otter stale, great utility. And nucor, and stan d'amico has it. …”
Squawk On The Street Discussed Dividends and KMB
If KMB's dividends are important to you, take a look at the news as they were the topic of conversation on Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KMB has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. We consider KMB as Undervalued at the current price of $59.85. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… KIMBERLY CLARK. Yes. Big consumer products company. They had a little hiccup in venezuela with the devaluation but they've made nice growth acquisitions and as I say a good ... …”
KMB in Developing Markets on Mad Money
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of KMB on Mad Money was in relation to emerging markets.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on KMB, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Kimberly-Clark Corporation has actually sunk a bit in comparison to the others.
“… Why not take a look at KIMBERLY-CLARK and a clorox and a conagra. Here's the bottom line. Don't let your portfolio get eaten by obama or chyrbdis, and only like those with ... …”
A View of KMB's Growth on Closing Bell
RazorWire keeps tabs on the important news investors should be aware of; today, KMB growth was the focus on Closing Bell.
Based on our methodology, Kimberly-Clark Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; KMB has received less coverage from the financial media in business television and blogs.
“… one buying right here is KIMBERLY CLARK. It's a $60 stock. They will earn about $5 this year which puts it at 12 times earnings. …”
Kimberly-Clark Corporation News Appeared on Squawk On The Street
News has broken via the television and viral blogs regarding KMB, so investors should take an interest in learning what was said.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KMB has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. We consider KMB as Undervalued at the current price of $61.22. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… The turn-around kid goes to KIMBERLY CLARK. The company out with a miss on their fourth quarter earnings, a buck 17 versus a buck 25 estimate. …”
Holding KMB Stock? See What Is Being Discussed on Imus In The Morning
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on KMB from Imus In The Morning.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KMB has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. We consider KMB as Undervalued at the current price of $61.20. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… And a couple of disappointing reports just out this morning, beginning with KIMBERLY-CLARK, earning $1. 17 a share. The estimate was 1. 25, but revenue of 4. …”
Stay Current on KMB's News on Imus In The Morning
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Kimberly-Clark Corporation.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KMB has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. We consider KMB as Undervalued at the current price of $61.20. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… That's your first base minute this morning, we do have breaking earnings coming out of KIMBERLY-CLARK, $1. 01 in share in profit and was expected 1. 25. …”
KMB Back in the News on Mad Money
After a month of relative quiet from KMB, they have appeared back in the news.
The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. We consider KMB as Undervalued at the current price of $63.31. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KMB has been less covered in the news compared to the rest of our universe of stocks.
“… Take a look at KIMBERLY CLARK up 4%. I see people blowing their noses, sneezing like their darn fool head is coming off. …”
News Developing on Squawk Box for KMB
As always, the latest news on KMB is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk Box.
Based on our methodology, Kimberly-Clark Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; KMB has received less coverage from the financial media in business television and blogs.
“… KIMBERLY-CLARK. > > it was on the cover of "the post. " > > becky's, like -- > > coming up, we'll get more of this morning's top stories. …”