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

Kaplio's reading: Kimberly-Clark Corporation

Updated on October 31, 2026 · accounts published on August 4, 2026

A profitable consumer staples business whose sales and earnings are shrinking

Kimberly-Clark trades at a P/E of 18.4 over the last 12 months, 13 % below its ten-year median, while revenue fell 14 % year over year.

• Is Kimberly-Clark expensive or cheap? At a P/E of 18.4 over the last 12 months, Kimberly-Clark trades 13 % below its ten-year median and 16 % below its sector.
• How is the business doing? Revenue fell 14 % and EPS 20 % over the last 12 months, and the operating margin of 12 % is below its 14 % 2014-2025 average.
• How strong is the balance sheet? The dividend yields 4.7 % and has risen 11 years in a row, but the fiscal 2025 payout of 82 % leaves little room.
• What to expect from the next earnings? Kimberly-Clark reports on November 5, 2026; analysts expect EPS of $1.65 after a 10 % miss in August.
• Is it as stable as the sector promises? Kimberly-Clark passes five of eight sector tests; dividend growth of 3.6 % a year since 2015 falls short of the 6 % bar.

Is Kimberly-Clark expensive or cheap?

Kimberly-Clark trades at a P/E of 18.4 over the last 12 months. That is 13 % below its ten-year median of 21.1 and 16 % below the 21.9 median of 95 consumer defensive peers. Over the last decade the stock has traded at a lower P/E only 23 % of the time, within a range of 13.0 to 36.2. A free cash flow yield of 8.7 % and an EV/EBITDA of 13.0 point the same way. The discount has a cause: the share is down 7 % over 12 months as earnings shrank, so part of the low multiple reflects a weaker business.

How is the business doing?

The last 12 months were weak: revenue fell 14 % and EPS 20 % year over year. The operating margin of 12.4 % is below both fiscal 2025 (14.5 %) and the 2014-2025 average of 14.3 %, so profitability has slipped from its usual level. Returns on capital still hold up. ROIC of 12.5 % over the last 12 months is 3.5 points above the sector median of 8.9 %, and it has stayed above 10 % in each of the last ten fiscal years (2016-2025). The 123 % ROE says more about a thin equity base than about exceptional profitability.

How strong is the balance sheet?

Net debt was $20.61 per share in fiscal 2025, about 19 % of the current price, and 2.1× EBITDA, inside the 2.5× ceiling considered healthy for consumer staples. A debt-to-equity ratio of 3.72 and a P/B of 20.5 look extreme, but they reflect a small equity base more than heavy borrowing. The current ratio of 0.91 is tight, while the Altman Z of 3.4 sits in the safe zone. The dividend yields 4.7 % over the last 12 months and has grown for 11 consecutive fiscal years. The fiscal 2025 payout of 82 %, however, is above the 75 % comfort level.

What to expect from the next earnings?

Kimberly-Clark reports results on November 5, 2026, and analysts expect EPS of $1.65 for the quarter. The last report, on August 4, 2026, came in at $1.80 against $2.01 expected, a 10 % miss, although the company beat estimates in 6 of the last 8 quarters. Expectations have not moved: the 2026 EPS consensus from 9 analysts stayed at $7.38 over the last 30 days, and the revenue consensus barely changed. Of 31 analysts, 10 rate the stock a buy, 18 a hold and 3 a sell, a cautious stance that matches the recent fall in earnings.

Is it as stable as the sector promises?

Investors buy consumer staples for steadiness and a rising dividend, so the checks look at margins, cash conversion and payouts more than at growth. Kimberly-Clark's gross margin of 35.6 % in fiscal 2025 just clears the 35 % stability line. EPS grew 8.1 % a year over 2015-2025, above the 6 % healthy mark, but the dividend grew only 3.6 % a year, below it. Free cash flow covered 81 % of net income in fiscal 2025 against a 90 % benchmark, and the 82 % payout is near its limit. The business looks stable, and dividend growth is its weak link.

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.