Kimberly-Clark Corporation (KMB)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of paying up for a slow-growing consumer staple, even one with everyday products like diapers, tissues, and personal care items. Kimberly-Clark's defensive nature shows in a beta of 0.27, but the numbers are not those of a compounder. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.2B and net income $345.0M, or diluted EPS $1.04. That was down sharply from fiscal Q1 2026, the quarter ended 2026-03-31, when net income was $665.0M and diluted EPS $2.00. For FY2025, revenue was $16.4B, net income $2.0B, and diluted EPS $6.07; FY2024 had revenue of $16.8B, net income of $2.5B, and diluted EPS of $7.55. The top line has drifted lower and profit has weakened. FairStock's Lynch classification is SLOW GROWER—Shrinking, with revenue and profit each down about 3% a year over five years. At the close on 2026-10-13, the price was $98.29 and market cap was $32.7B. FairStock's P/E is 19.42, P/B is 18.69, EV/EBITDA is 11.95, and FCF yield is 5.6%. The dividend yield is 5.23%, with TTM free cash flow of $1.8B. Debt concerns me: D/E is 3.49, Altman Z-Score is 2.21, and the Graham Number is $24.47, leaving a margin of safety of -301.68%. In plain terms, the price is far above Graham's asset-based value. ROE of 104.91% looks impressive but is flattered by a thin equity base, while ROCE is 10.20% and Piotroski is 6/9. This is a decent but pressured staple with a generous dividend; the price still looks full for a shrinking business. I would want evidence of stabilized revenue, margins, and debt reduction before calling it a bargain.

In plain English: Kimberly-Clark makes everyday personal care and paper products such as diapers, tissues, and paper towels. The business has steady demand, but sales have been slipping and profit fell sharply in the latest reported quarter. At the recent price near $98, the shares look expensive compared with the company's profits and assets, though the dividend payout is generous.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer