Kimberly-Clark Corporation (KMB) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Kimberly-Clark Corporation

Updated on October 15, 2026 · accounts published on August 4, 2026

Reading of October 14, 2026: A highly profitable consumer staples business whose sales and earnings are shrinking

Kimberly-Clark trades at a P/E of 16.9, 20 % below its ten-year median of 21.1, while revenue fell 14 % over the last 12 months.

• Is Kimberly-Clark expensive or cheap? The P/E of 16.9 sits 20 % below its ten-year median and 24 % below the sector; it was cheaper only 13 % of the decade.
• How is the business doing? Revenue fell 14 % and EPS 20 % over the last 12 months, with operating margin at 12 % versus a 14 % average since 2014.
• How strong is the balance sheet? Net debt is $20.61 per share, 21 % of the price, and 2.1× EBITDA in fiscal 2025, under the 2.5× healthy line for the sector.
• What to expect from the next earnings? For October 29, 2026 analysts expect EPS of $1.59, after a 10 % miss last quarter; 10 of 31 analysts rate it a buy.
• Is it as stable as the sector promises? Kimberly-Clark passes 5 of 8 sector checks, but dividend growth of 3.6 % a year over 2015-2025 falls short of the 6 % bar.

Is Kimberly-Clark expensive or cheap?

Over the last 12 months Kimberly-Clark trades at a P/E of 16.9, against a ten-year median of 21.1 and a sector median of 22.2 across 138 consumer defensive companies. Over the past decade the multiple ranged from 13.0 to 36.1, and it has been lower than today only 13 % of the time. A free cash flow yield of 9.4 % and EV/EBITDA of 12.1× point the same way. The discount has a reason: the stock is down 14 % in 12 months and sits 15 % below its 52-week high of $121.44 as earnings shrink.

How is the business doing?

The last 12 months were a step back: revenue dropped 14 % and EPS 20 % year over year, and operating margin slipped to 12 %, below the 14 % average of fiscal 2014-2025 and the 15 % of fiscal 2025. Returns on capital hold up better. ROIC of 12.5 % over the last 12 months beats the sector median of 8.9 % by 3.5 points, and it stayed above 10 % in each of the last ten fiscal years. The ROE of 123 % mostly reflects a thin equity base (P/B of 18.9×), so ROIC is the fairer gauge.

How strong is the balance sheet?

Leverage looks heavy on paper but remains manageable. Debt-to-equity is 3.72 over the last 12 months, yet net debt stood at 2.1× EBITDA in fiscal 2025, inside the 2.5× considered healthy for consumer defensive companies, and the Altman Z of 3.4 sits in the safe zone. A current ratio of 0.91 means short-term liabilities exceed current assets. The dividend yields 5.1 % and has risen for 11 consecutive fiscal years, but an 82 % payout in fiscal 2025 leaves little cushion if earnings keep falling.

What to expect from the next earnings?

The last report, on August 4, 2026, delivered EPS of $1.80 against $2.01 expected, a 10 % miss that broke a solid record: Kimberly-Clark had beaten estimates in 6 of the last 8 quarters. For the results due October 29, 2026, consensus sits at $1.59. The 2026 EPS estimate slipped 0.6 % in 30 days, from $7.42 to $7.37 among 8 analysts, while revenue estimates barely moved. Of 31 analysts, 18 say hold, 10 buy and 3 sell. The key question is whether margins stop eroding.

Is it as stable as the sector promises?

Consumer defensive investors buy stability and a rising dividend, not explosive growth, so the checks focus on margins, cash conversion and payouts. Gross margin of 36 % in fiscal 2025 clears the 35 % stability line, though only just. EPS grew 8.1 % a year over fiscal 2015-2025, above the healthy 6 %, and net debt at 2.1× EBITDA passes. The weak spots sit on the dividend side: it grew only 3.6 % a year, the payout of 82 % exceeds the comfortable 75 %, and free cash flow covered 81 % of net income against a 90 % benchmark.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.