US Equities Analysis

KMB — Kimberly-Clark

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 19.65%
Profit Margins 12.8%
Return on Equity 111.73%
Return on Assets 10.16%
Free Float 0.33B
Dividend Yield 4.74%
Short Int % Utilisation 14.86%

2.2 Growth

Metric Value
Revenue Growth 2.7%
Free Cash Flow 1.05B
EBITDA 12.06 (Ratio)
Enterprise Value 40.4B
EV/Revenue 2.44
EV/EBITDA 12.06

Revenue growth of 2.7% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -9.66%
Risk / Std Dev (Ann.)* 27.25%
1-Year Price Return* -12.90%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $110.39
52-Week Range $92.42 – $136.17
Observation Count 250 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $16.45B
Prior annual revenue $16.80B
EBIT $2.31B
Tax rate 29.19%
NOPAT = EBIT × (1 − tax rate) $1.63B
Forecast start-growth basis -2.13%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $1.63B
Add: depreciation & amortisation $805.00M
Less: capital expenditure -$1.14B
Less/(add): working-capital cash-flow movement -$503.00M
Current unlevered FCFF $798.27M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 -2.13% $1.60B $787.85M -$1.11B -$492.28M $781.27M $760.28M
2 -0.97% $1.58B $780.19M -$1.02B -$487.50M $854.35M $787.34M
3 0.18% $1.59B $781.63M -$943.30M -$488.40M $936.76M $817.54M
4 1.34% $1.61B $792.12M -$874.04M -$494.95M $1.03B $852.30M
5 2.50% $1.65B $811.93M -$811.93M -$507.33M $1.14B $893.03M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.28
Cost of equity 6.23%
Pre-tax cost of debt 3.45%
WACC 5.60%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $37.77B
Implied terminal EV / EBITDA 12.03x
Terminal value as % of enterprise value 87.50%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $4.11B
Present value of terminal value $28.77B
Indicated enterprise value $32.88B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $32.88B
Less: gross interest-bearing debt $7.30B
Add: cash and equivalents $774.00M
Add: affiliate investments $0.00
Less: minority interests $128.00M
Indicated common equity value $26.23B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 333,200,000.00
Share-count basis reported diluted weighted-average shares
Current market price $109.12
DCF indicative value per share $78.72
Indicative value vs. market price -27.86%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:39:32.327961 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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