NYSE:KMB
$61.29
(3/18 4:00PM)
+0.6%
| Open | $61.02 |
Mkt Cap | $25.4 Billion |
| High | $61.34 |
52Wk High | $67.03 |
| Low | $60.82 |
52Wk Low | $45.19 |
| Volume | 2.9 Million |
Avg Vol 10D | 3.1 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 2.11x and 1.61x respectively.
Notice that KMB's current Price to Sales per share ratio is 1.31x, 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 $60.08, KMB is 30% 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 14.02 and a historical low Cash Earnings per share ratio of 10.72, 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 28% 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 $2.64 producing a current dividend yield of 4.39%. 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 5.84% while the lowest dividend yield was 1.56%. It's hard not to notice that KMB pays a current dividend yield that is 18.65% above the historical median. This peaks our interest since our analysis looks favorably upon dividend yields that are greater than the historical median.
News Developing on Closing Bell for KMB
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.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about KIMBERLY-CLARK CORP.
Learn About RazorWire?KMB and Analysts' Opinion Discussed on Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about KIMBERLY-CLARK CORP.
Learn About RazorWire?KMB in Developing Markets on Asia Morning Call
Kimberly-Clark Corporation and an emerging market growth strategy were discussed recently on KMB.
The Motley Fool CAPS data suggests that investors believe Kimberly-Clark Corporation will beat the market in the foreseeable future. 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. We consider KMB as Undervalued at the current price of $60.04. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… A sausage casing manufacturer and china's equivalent of KIMBERLY-CLARK. The consumer is probably a better play than the property sector for those reasons. > > …”
Stay Current on KMB's News on Closing Bell
The latest news from Closing Bell on KMB is available through Ockham's news analytics platform RazorWire.
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. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. 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.
“… losing $144 million a year it did beat wall street estimates due to improving cooper tie up 3.5%. KIMBERLY CLARK which makes …”
Notice a Discussion Covering KMB Appeared Recently in the Financial News
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on KMB from Street Signs.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. 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.
“… My note says KIMBERLY-CLARK, it's cryptic, sell by goldman, I like it. > > oh, yeah. > > I thought that meant you liked the call but what you mean is you like the kansas ... …”
What are the Experts Saying? Analysts and KMB on Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
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 $59.94. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… KIMBERLY-CLARK, downgraded from neutral at goldman sachs. It cut its price target from $60 to 63. The firm raised the q-4 estimates and osi pharmaceuticals, ubs downing the. …”
KMB's Dividends Mentioned by Squawk On The Street
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.
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.
“… KIMBERLY CLARK down graidgraded to a sell at goldman sachs. 2% to the downside. Bertha coombs is at the nasdaq. > > > …”
Power Lunch Discussed Dividends and KMB
For income investors, dividend news is obviously important. KMB's dividends were discussed recently on Power Lunch.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Kimberly-Clark Corporation has been talked about more than normal recently. 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 $60.47. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… At this hour a bigger payout from the maker of clekleenex tissues and huggies diapers, KIMBERLY-CLARK boosting the quarterly dividend by 10%. > > brocade plummeting. …”
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. …”