Kimberly-Clark
KMB
$98.15
-0.34%
Kimberly-Clark Corp. is a global leader in personal care and consumer tissue products, manufacturing iconic brands such as Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle, and also serving businesses through its professional segment. The company holds a dominant market position in the household and personal products industry, with over half of its sales generated in North America and a strong presence in Europe, Asia, and Latin America. Currently, the investor narrative centers on the company's strategic acquisition of Kenvue's consumer health portfolio, expected to close in the second half of 2026, which is seen as a transformative move to diversify and expand its product offerings. Additionally, the stock has attracted attention as a high-yield dividend play, with recent articles highlighting its attractive yield and discounted valuation, while the market debates the impact of the Kenvue deal on growth and margins.…
KMB
Kimberly-Clark
$98.15
Related headlines
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 'buy' with an average target of $118.60, implying 13% upside, but the wide range ($90-$162) reflects high uncertainty. The thesis is that KMB is a value play with a 4.94% yield, but growth is needed to justify a re-rating.
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KMB 12-Month Price Forecast
The AI assessment is neutral with medium confidence. KMB's valuation is attractive, but the revenue decline and high leverage are concerning. The forward PE suggests the market expects a significant earnings recovery, likely from the Kenvue acquisition, but execution risks are high. If the acquisition succeeds and revenue stabilizes, the stock could re-rate higher; if it fails, downside to $90 is possible. The stance would be upgraded to bullish if revenue growth turns positive and the acquisition closes without issues, and downgraded to bearish if the dividend is cut or revenue decline worsens.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Kimberly-Clark's 12-month outlook, with a consensus price target around $118.07 and implied upside of +20.3% versus the current price.
Average Target
$118.07
0 analysts
Implied Upside
+20.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$90 - $162
Analyst target range
The target price range spans from a low of $90.00 to a high of $162.00, indicating a wide dispersion of expectations. The high target of $162 assumes successful execution of the Kenvue acquisition, leading to significant revenue and margin expansion, while the low target of $90 reflects concerns about continued organic sales declines and integration risks. Recent institutional actions show no major upgrades or downgrades, with firms like Wells Fargo, UBS, and Barclays maintaining their ratings, while Piper Sandler and B of A Securities remain positive. The wide spread between low and high targets suggests high uncertainty about the deal's outcome and the company's ability to return to growth.
Bulls vs Bears: KMB Investment Factors
KMB presents a classic value-versus-growth dilemma. The bull case rests on a compelling valuation (24.6% discount to peers), a high 4.94% dividend yield, and the transformative potential of the Kenvue acquisition, which analysts believe could drive EPS growth of 18.6% as implied by the forward PE. However, the bear case is equally strong, with revenue declining 14% YoY, high leverage (D/E 4.86), and significant underperformance relative to the market. The single most important tension is whether the Kenvue acquisition can reverse the revenue decline and justify the forward PE multiple; if it succeeds, the stock could re-rate toward the average target of $118.60, but if it fails, the stock may drift toward the low target of $90. Currently, the bearish evidence on fundamentals is slightly stronger, but the valuation and dividend provide a floor, making the risk/reward balanced.
Bullish
- Attractive valuation discount: KMB trades at a trailing PE of 16.59x and forward PE of 13.99x, a 24.6% discount to the industry average of 22x. This suggests the stock is undervalued relative to peers, offering potential upside if growth stabilizes.
- High dividend yield with growth: The dividend yield is 4.94%, well above the S&P 500 average, and the payout ratio of 82% is high but sustainable given stable cash flows. Recent articles highlight this yield as a key attraction for income investors.
- Analyst consensus bullish: With a 'buy' rating and an average target price of $118.60, analysts see 13% upside from the current price of $104.96. The high target of $162 implies 54% upside, reflecting optimism about the Kenvue acquisition.
- Strategic Kenvue acquisition: The planned acquisition of Kenvue's consumer health portfolio, expected to close in H2 2026, is transformative. It diversifies revenue into faster-growing health categories and could drive margin expansion, as reflected in the forward PE being 15.7% below trailing PE.
Bearish
- Declining revenue trend: Revenue fell 13.99% YoY in Q1 2026 to $4.163 billion, continuing a multi-quarter decline from $4.84 billion in Q1 2025. This deceleration is broad-based, raising concerns about organic growth.
- High leverage and low liquidity: Debt-to-equity is 4.86, indicating high leverage, while the current ratio of 0.75 suggests potential liquidity stress. This financial risk is elevated ahead of the Kenvue acquisition, which will require significant capital.
- Underperformance vs market: KMB's 1-year return is -18.74% versus the S&P 500's +18.65%, a relative underperformance of 37.39%. The stock is near its 52-week low, indicating persistent negative momentum.
- Negative PEG ratio: The PEG ratio is -0.84, reflecting negative earnings growth expectations. This suggests the market does not anticipate near-term EPS growth, contradicting the forward PE optimism.
KMB Technical Analysis
Kimberly-Clark's stock has been in a broad downtrend over the past year, with a 1-year price change of -18.74%, significantly underperforming the S&P 500's +18.65% gain. The current price of $104.96 sits at approximately 79.8% of the 52-week range (between $92.42 low and $131.53 high), indicating the stock is closer to its lows than its highs, which could suggest a value opportunity or a falling knife depending on fundamental catalysts. The stock's beta of 0.273 implies it is much less volatile than the market, but its relative strength over the past year is -37.39%, showing persistent weakness relative to the broader market.
Beta
0.27
0.27x market volatility
Max Drawdown
-32.0%
Largest decline past year
52-Week Range
$92-$130
Price range past year
Annual Return
-24.2%
Cumulative gain past year
| Period | KMB Return | S&P 500 |
|---|---|---|
| 1m | -9.9% | -1.1% |
| 3m | -4.0% | +3.0% |
| 6m | -0.7% | +15.4% |
| 1y | -24.2% | +16.2% |
| ytd | -3.2% | +12.1% |
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KMB Fundamental Analysis
Revenue has been declining, with the most recent quarter (Q1 2026) showing revenue of $4.163 billion, a -13.99% year-over-year decline, and a sequential decline from the prior quarter's $4.08 billion. This marks a continuation of a multi-quarter trend where revenue has fallen from $4.84 billion in Q1 2025 to $4.163 billion in Q1 2026, indicating a clear deceleration. The decline is broad-based, with segments like diapers ($1.696 billion) and consumer tissue ($1.04 billion) still generating significant sales, but the overall top line is contracting, likely due to portfolio divestitures and currency headwinds.
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 net income is positive (Q1 2026 net income of $665 million), the PE ratio is the primary valuation metric. The trailing PE is 16.59x, while the forward PE is 13.99x, implying the market expects earnings growth of approximately 18.6% over the next year. This gap suggests optimism about margin recovery and the Kenvue acquisition's accretive impact. Compared to the industry average PE of 22x (based on available data), KMB trades at a 24.6% discount, which could indicate undervaluation or reflect lower growth prospects.
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 risks are pronounced: KMB's debt-to-equity ratio of 4.86 indicates high leverage, which could strain cash flows, especially as interest expenses were $58 million in Q1 2026. The current ratio of 0.75 suggests potential difficulty meeting short-term obligations, and the company's revenue decline of 13.99% YoY in Q1 2026 signals weakening top-line momentum. Additionally, the payout ratio of 82% leaves little room for dividend increases if earnings falter, and free cash flow of $2.578 billion TTM may be insufficient to cover debt obligations and the upcoming Kenvue acquisition costs.