Kimberly-Clark
KMB
$109.31
-0.80%
Kimberly-Clark Corp. is a leading global manufacturer of personal care and consumer tissue products, with a portfolio that includes iconic brands such as Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle. The company operates in the Household & Personal Products industry, deriving over half of its sales from personal care and another third from consumer tissue, with a significant professional segment serving businesses. As a market leader in tissue and hygiene, Kimberly-Clark is currently navigating a transformative period, highlighted by its planned acquisition of Kenvue's consumer health portfolio in the second half of 2026, which is expected to reshape its product mix and growth trajectory. Investor attention is focused on the company's ability to drive organic growth amid input cost pressures, its margin recovery efforts, and the strategic rationale and execution risks associated with the Kenvue deal.…
KMB
Kimberly-Clark
$109.31
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Investment Opinion: Should I buy KMB Today?
Rating: Hold. KMB is a defensive consumer staples stock with a high dividend yield, but its declining revenue and high leverage warrant caution. The analyst consensus is 'hold' with an average target of $117, implying a modest 7% upside. The stock offers a 4.94% dividend yield, which provides a cushion, but the negative growth trajectory and execution risks from the Kenvue acquisition limit upside potential.
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KMB 12-Month Price Forecast
The AI assessment is neutral, reflecting a balance between the stock's attractive valuation and income characteristics against its negative growth and high leverage. The key swing factor is the Kenvue acquisition, which could either transform the company or add to its troubles. If revenue stabilizes and the deal closes successfully, the stance would upgrade to bullish. Conversely, if revenue declines worsen or the dividend is cut, the stance would turn bearish. The current risk-reward is balanced, with a slight tilt towards caution given the operational headwinds.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Kimberly-Clark's 12-month outlook, with a consensus price target around $117.00 and implied upside of +7.0% versus the current price.
Average Target
$117.00
0 analysts
Implied Upside
+7.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$90 - $162
Analyst target range
Kimberly-Clark is covered by 15 analysts, with a consensus recommendation of 'hold' and a mean recommendation score of 2.56 (where 1 is strong buy and 5 is sell). The average target price is $117.00, implying an upside of approximately 7.0% from the current price of $109.31. The distribution of ratings is not explicitly provided, but the 'hold' consensus suggests a balanced view, with some analysts seeing value and others cautious on growth prospects. The target price range spans from a low of $90.00 to a high of $162.00, indicating significant divergence in expectations. The high target of $162 implies a potential upside of 48.2%, likely assuming successful integration of Kenvue and a return to growth, while the low target of $90 suggests a downside of 17.7%, reflecting concerns about continued revenue declines and margin erosion. Recent ratings actions have been largely neutral, with firms like Wells Fargo, UBS, and Barclays maintaining equal weight or neutral stances, while Piper Sandler remains overweight, indicating a lack of strong conviction in either direction.
Bulls vs Bears: KMB Investment Factors
KMB presents a mixed picture: it offers a high dividend yield, strong free cash flow, and a discounted valuation, but faces declining revenue, high leverage, and negative momentum. The bull case hinges on the successful integration of the Kenvue acquisition and a return to growth, while the bear case focuses on continued top-line erosion and margin pressure. Currently, the bearish evidence is slightly stronger given the persistent revenue declines and analyst caution, but the valuation and income support provide a floor. The most critical tension is whether the Kenvue deal can reverse the negative growth trajectory and justify the current valuation, or if operational headwinds persist, leading to further downside.
Bullish
- Attractive Valuation Discount: KMB trades at a trailing PE of 16.59x and forward PE of 14.46x, a ~25% discount to the industry average of 22x. This valuation gap suggests the market is pricing in a cautious outlook, but if the company stabilizes, there is room for multiple expansion.
- High Dividend Yield with Payout: With a dividend yield of 4.94% and a payout ratio of 82.1%, KMB offers a compelling income stream. The yield is well above the S&P 500 average, making it attractive for income-focused investors, especially in a low-rate environment.
- Strong Free Cash Flow Generation: KMB generated $2.578 billion in trailing twelve-month free cash flow, supporting its dividend and providing flexibility for debt reduction or strategic investments. This cash generation is a key pillar of its investment thesis.
- Strategic Kenvue Acquisition Potential: The planned acquisition of Kenvue's consumer health portfolio in H2 2026 could diversify revenue and add higher-growth brands. Analysts' high target of $162 implies a 48.2% upside, reflecting optimism about the deal's transformative potential.
Bearish
- Declining Revenue Trend: Q1 2026 revenue fell 13.99% YoY to $4.163 billion, continuing a decelerating trend from $4.84 billion in Q1 2025. This broad-based decline raises concerns about market share losses and weak demand across core categories.
- High Leverage and Debt Burden: Debt-to-equity ratio stands at 4.86, indicating significant leverage. With a current ratio of 0.75, the company may face liquidity pressures, especially if cash flows weaken or interest rates remain elevated.
- Negative Relative Strength: KMB's 1-year relative strength is -30.48% versus the S&P 500, and the stock is down 12.29% over the past year. This underperformance reflects persistent operational challenges and a lack of investor confidence.
- Analyst Consensus is Hold: With a mean recommendation of 2.56 (hold) and an average target of $117 (only 7% upside), analysts are not enthusiastic. The low target of $90 implies a potential 17.7% downside, indicating significant bearish risk.
KMB Technical Analysis
Kimberly-Clark's stock is currently in a recovery phase after a significant decline, with the price at $109.31 as of July 31, 2026, reflecting a 12.29% decline over the past year. The stock is trading at approximately 79.5% of its 52-week range (between the low of $92.42 and high of $137.46), indicating it has recovered from the lows but remains well below its highs. This positioning suggests the market is cautiously optimistic, with the stock having bounced off its lows but still facing overhead resistance from prior levels. The 52-week low of $92.42 was tested in early April 2026, and the subsequent rebound of over 18% from that level indicates strong buying interest at lower prices, but the stock remains in a broader downtrend from its 52-week high of $137.46, which was set in late 2025.
Beta
0.28
0.28x market volatility
Max Drawdown
-32.0%
Largest decline past year
52-Week Range
$92-$137
Price range past year
Annual Return
-12.3%
Cumulative gain past year
| Period | KMB Return | S&P 500 |
|---|---|---|
| 1m | -1.9% | +0.3% |
| 3m | +11.9% | +4.0% |
| 6m | +9.3% | +8.3% |
| 1y | -12.3% | +20.2% |
| ytd | +7.8% | +9.6% |
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KMB Fundamental Analysis
Kimberly-Clark's revenue has been under pressure, with the most recent quarter (Q1 2026) reporting revenue of $4.163 billion, a 13.99% decline year-over-year. This marks a continuation of a decelerating trend, as revenue fell from $4.84 billion in Q1 2025 to $4.163 billion in Q1 2026, with sequential declines from $4.08 billion in Q4 2025 and $4.133 billion in Q3 2025. The decline is broad-based, with consumer tissue revenue at $1.04 billion and diapers at $1.696 billion in the latest quarter, reflecting softer demand and potential market share losses. The company's growth trajectory is clearly negative, which raises concerns about its ability to generate top-line expansion in a competitive environment, though the upcoming Kenvue acquisition could provide a new growth vector.
Quarterly Revenue
$4.2B
2026-03
Revenue YoY Growth
-14.0%
YoY Comparison
Gross Margin
36.9%
Latest Quarter
Free Cash Flow
$2.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is KMB Overvalued?
Given that Kimberly-Clark is profitable, the price-to-earnings (PE) ratio is the most appropriate valuation metric. The trailing PE is 16.59x, while the forward PE is 14.46x, indicating that the market expects earnings growth over the next year. The gap between trailing and forward PE suggests an anticipated improvement in earnings, likely driven by cost savings and the Kenvue acquisition. Compared to the industry average PE of 22x (based on available data), Kimberly-Clark trades at a discount of approximately 25%, which could be justified by its negative revenue growth and margin pressures. Historically, the stock's PE has ranged from as low as 12.06x in Q1 2026 to over 115x in Q2 2023, with the current 16.59x sitting near the lower end of its historical band, suggesting the market is pricing in a cautious outlook.
PE
16.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 13x~28x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: KMB's high debt-to-equity ratio of 4.86 and current ratio of 0.75 indicate a leveraged balance sheet with potential liquidity concerns. The company's revenue has been declining, with Q1 2026 down 13.99% YoY, which could pressure cash flows and its ability to service debt. Additionally, the payout ratio of 82.1% leaves little room for dividend increases or unexpected cash needs, and any earnings miss could force a dividend cut, which would be detrimental for income investors. The negative PEG ratio of -0.84 suggests that earnings growth is expected to be negative, further straining financial flexibility.