KMB

Kimberly-Clark Corp.

Consumer, Industrial/Transportation


Presented:11/10/2022
Price:$127.78
Cap:$43.12B
Current Price:$145.23
Cap:$48.91B

Presented

Date11/10/2022
Price$127.78
Market Cap$43.12B
Ent Value$46.70B
P/E Ratio24.23x
Book Value$1.30
Div Yield3.62%
Shares O/S337.49M
Ave Daily Vol1,575,576
Short Int2.00%

Current

Price$145.23
Market Cap$48.91B
Kimberly-Clark Corp. engages in the manufacture and marketing of products made from natural or synthetic fibers. It operates through the following segments: Personal Care, Consumer Tissue, and K-C Professional (KCP). The Personal Care segment offers disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, and other related products. The Consumer Tissue segment produces and sells facial and bathroom tissue, paper towels, napkins, and related products for household use. The K-C Professional segment supplies workplace supporting products such as wipers, tissue, towels, apparel, soaps, and sanitizers. The firm's brands include Depend, Huggies, Kleenex, Kotex, and Scott. The company was founded by John A. Kimberly, Havilah Babcock, Charles B. Clark, and Frank C. Shattuck in 1872 and is headquartered in Irving, TX.

Publicly traded companies mentioned herein: Kimberly-Clark Corp (KMB)

Highlights

The presenter is short shares of Kimberly-Clark Corp (KMB) due to worrying idiosyncratic trends and current macroeconomic factors. Given the popularity and stability of the company, investors may be overlooking the accelerated declines in operating profit QoQ while still viewing the stock as a safe haven. However, KMB’s soft guidance for 2023 seems to point to worsening business conditions, which he thinks will lead to stagnant growth and margin compression. He sees the company as overexposed to trade down risk due to the positioning of its major brands, which could lead to a slowdown in demand with little potential for pricing power to offset this topline headwind. These trends are accelerating in emerging markets, and the presenter expects US sales to decline in the coming quarters as recessionary pressures become more pronounced. 

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Idea Discussion

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