Kimberly Clark manufactures and markets personal care, consumer tissue, and K-C professional products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The company was founded in 1872 and is based in Dallas, Texas.
KMB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KMB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kimberly Clark Corp ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Kimberly Clark Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 12.65 -- which is good for besting 81.3% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
KMB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 31.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KMB, try CLX, EL, K, SMPL, and PG.
Kimberly-Clark Corporation (NYSE: KMB) will webcast a discussion of its second quarter 2020 results at 9 a.m. CDT on Thursday, July 23. Kimberly-Clark's Chairman and CEO Mike Hsu and Senior Vice President and CFO Maria Henry will participate in the live webcast. A news release detailing the results will be issued via PR Newswire and First Call earlier that same day.
Kimberly-Clark has announced its new 2030 sustainability strategy and goals, aimed at addressing the social and environmental challenges of the next decade with commitments to improve the lives and wellbeing of one billion people in underserved communities around the world with the smallest environmental footprint.
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