Nasdaq:KMB
KIMBERLY CLARK CORP
KMB is a global leader in consumer packaged goods, leveraging its dominant portfolio of trusted hygiene and tissue brands to deliver consistent cash flow and dividend growth.
Key Metrics
Investment Thesis
Bull Case
KMB offers a defensive income play with a history of reliable dividend growth that often outpaces inflation, supported by a 'cash cow' business model in essential hygiene products. The valuation appears attractive given the low beta and ability to generate $2.78B in operating cash flow against only $15.47B in total liabilities. Management's disciplined capital allocation prioritizes returning excess cash to shareholders while maintaining balance sheet strength.
Bear Case
The sharp revenue contraction from $20.18B in 2022 to $16.45B in 2025 signals potential secular headwinds or aggressive pricing pressures that threaten future growth visibility. High levels of goodwill ($1.84B) and accumulated other comprehensive losses ($-3.44B) indicate balance sheet fragility during economic downturns. Limited organic growth opportunities outside of international expansion may constrain long-term capital appreciation compared to high-growth tech peers.
About KIMBERLY CLARK CORP
Kimberly-Clark Corporation (KMB) manufactures and markets consumer tissue, personal care, and professional hygiene products globally. The company serves households, commercial institutions, and healthcare facilities with iconic brands like Kleenex, Cottonelle, Huggies, and Depend. Operations span North America, Europe, Asia-Pacific, and Latin America, focusing on essential non-woven and paper goods.
Analysis
Management Discussion
Recent financial performance shows a decline in revenue to $16.45B in 2025 compared to the prior three years, likely reflecting macroeconomic headwinds or volume shifts despite stable profitability with net income of $2.05B. Strong operating cash flow of $2.78B funded significant shareholder returns via $1.66B in dividends and modest share repurchases while reducing debt by $550M. The company maintains a conservative capital structure with low leverage relative to its strong free cash generation.
Industry Overview
The global consumer goods industry is mature but resilient, driven by essential demand for hygiene and tissue products that are relatively recession-proof. Companies face constant pressure from rising input costs and the need to innovate towards sustainable materials while defending against discount private labels. Market consolidation is common as larger players acquire struggling rivals to expand market share and improve operational efficiency.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $20.18B | $20.43B | $20.06B | $16.45B |
| Cost of Revenue | $13.96B | $13.40B | $12.88B | $10.52B |
| Gross Profit | $6.22B | $7.03B | $7.18B | $5.92B |
| Operating Expenses | $3.54B | $4.69B | $3.97B | $3.57B |
| Operating Income | $2.68B | $2.34B | $3.21B | $2.35B |
| R&D | $292.0M | $312.0M | $338.0M | $326.0M |
| Stock-Based Comp | $150.0M | $169.0M | $131.0M | $140.0M |
| D&A | $754.0M | $753.0M | $781.0M | $805.0M |
| Depreciation | — | — | $773.0M | $735.0M |
| Amortization | $15.0M | $13.0M | $8.0M | $2.0M |
| Other OpEx | $3.25B | $4.38B | $3.63B | $3.25B |
| Non-Operating Income | $-341.0M | $-323.0M | $-283.0M | $-299.0M |
| Interest Expense | $282.0M | $293.0M | $270.0M | $256.0M |
| Interest Income | $14.0M | $66.0M | $48.0M | $24.0M |
| Pre-Tax Income | $2.34B | $2.02B | $2.93B | $2.05B |
| Income Tax | $495.0M | $453.0M | $565.0M | $599.0M |
| Continuing Ops | $1.84B | $1.57B | $2.36B | $1.65B |
| Discontinued Ops | $116.0M | $196.0M | $216.0M | $400.0M |
| Net Income | $1.96B | $1.76B | $2.58B | $2.05B |
| Minority Interest | $27.0M | $0 | $33.0M | $28.0M |
| Net to Common | $1.93B | $1.76B | $2.54B | $2.02B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $5.73B | $5.70B | $5.58B | $5.31B |
| Cash & Equivalents | $427.0M | $1.09B | $1.02B | $688.0M |
| Accounts Receivable | $2.28B | $2.13B | $2.01B | $1.89B |
| Inventory | $2.27B | $1.96B | $1.82B | $1.48B |
| Other Current Assets | $753.0M | $520.0M | $728.0M | $1.25B |
| Long-Term Assets | $12.24B | $11.64B | $10.97B | $11.79B |
| PP&E (Net) | $7.88B | $7.91B | $7.51B | $6.78B |
| Intangibles | $851.0M | $197.0M | $87.0M | $77.0M |
| Goodwill | $2.07B | $2.08B | $1.96B | $1.84B |
| Operating Leases | — | — | $413.0M | $369.0M |
| Other LT Assets | $1.19B | $1.14B | $675.0M | $2.40B |
| Total Assets | $17.97B | $17.34B | $16.55B | $17.10B |
| Current Liabilities | $7.33B | $6.93B | $7.00B | $7.12B |
| Accounts Payable | $3.81B | $3.65B | $3.71B | $3.39B |
| Current Leases | — | $130.0M | $131.0M | $128.0M |
| Other Current Liab | $844.0M | $437.0M | $437.0M | $1.31B |
| Long-Term Liabilities | $9.94B | $9.35B | $8.57B | $8.34B |
| LT Operating Leases | — | — | $305.0M | $258.0M |
| Other LT Liab | — | — | $8.26B | $8.09B |
| Total Liabilities | $17.27B | $16.28B | $15.57B | $15.47B |
| Shareholders' Equity | $700.0M | $1.07B | $975.0M | $1.63B |
| Paid-In Capital | $679.0M | $878.0M | $862.0M | $849.0M |
| Retained Earnings | $8.20B | $8.37B | $9.26B | $9.61B |
| AOCI | $-3.67B | $-3.58B | $-3.77B | $-3.44B |
| Treasury Stock | $5.14B | $5.22B | $5.99B | $5.99B |
| Total L&E | $17.97B | $17.34B | $16.55B | $17.10B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.96B | $1.76B | $2.58B | $2.05B |
| Non-Cash Adjustments | $316.0M | $2.62B | $796.0M | $811.0M |
| Working Capital Changes | $456.0M | $-846.0M | $-140.0M | $-83.0M |
| Cash from Operations | $2.73B | $3.54B | $3.23B | $2.78B |
| Cash from Investing | $-785.0M | $-418.0M | $-100.0M | $-951.0M |
| Debt Issuances | $0 | $363.0M | $0 | $0 |
| Debt Repayments | $312.0M | $475.0M | $554.0M | $550.0M |
| Share Buybacks | $100.0M | $225.0M | $1.00B | $141.0M |
| Dividends Paid | $1.56B | $1.59B | $1.63B | $1.66B |
| Cash from Financing | $-1.76B | $-2.37B | $-3.17B | $-2.18B |
| FX Effect | $-31.0M | $-84.0M | $-40.0M | $33.0M |
| Net Change in Cash | $157.0M | $666.0M | $-72.0M | $-320.0M |
| Beginning Cash | $270.0M | $427.0M | $1.09B | $1.01B |
| Ending Cash | $427.0M | $1.09B | $1.02B | $688.0M |
Frequently Asked Questions
How does KIMBERLY CLARK CORP make money?
The company operates primarily through three core categories: Tissue (facial tissues like Kleenex and toilet paper), Personal Care (diapers like Huggies and feminine care like Kotex), and Professional (commercial and healthcare products like Scott and Depend). Revenue streams are diversified across consumer retail channels, mass merchandisers, and direct commercial contracts.
What are the main risks for KMB?
Raw material price volatility, particularly for wood pulp and paper, which can compress margins if not hedged effectively. Regulatory pressures on plastic content and sustainability claims could necessitate costly product reformulations. Intense competition from discount retailers and private label brands threatens market share in low-margin categories.
What is KMB's competitive advantage?
Kimberly-Clark benefits from an unassailable brand portfolio with decades of consumer loyalty that creates high switching costs. Its global scale allows for significant economies of scope in raw material procurement and manufacturing efficiency. The company's robust balance sheet supports consistent capital returns through a 50+ year track record of dividend growth.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.