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Kimberly-Clark de Mexico SAB de CV (ADR) (KCDMY)
:KCDMY
RESEARCH TOOLSreports
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Kimberly-Clark de Mexico SAB de CV
(OTC:KCDMY)
76Outperform
Kimberly-Clark de Mexico SAB de CV (KCDMY) vs. S&P 500 (SPY)
Market Cap
$4.88B
Dividend Yield5.66%
Average Volume (3M)46.96K
Price to Earnings (P/E)11.4
Beta (1Y)0.53
Revenue Growth0.05%
EPS Growth9.32%
CountryUS
Employees41,000
SectorConsumer Defensive
Sector Strength75
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)0.70
Shares Outstanding320,147,740
10 Day Avg. Volume36,132
30 Day Avg. Volume46,960
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)N/A
Price to Sales (P/S)2.10
Price to Cash Flow (P/CF)11.00
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Kimberly-Clark de Mexico SAB de CV Business Overview & Revenue Model
Company DescriptionKimberly-Clark de Mexico SAB de CV (KCDMY) is a leading manufacturer and marketer of consumer products in Mexico. The company operates in the personal care, consumer tissue, and professional business sectors, providing essential products such as diapers, baby wipes, feminine care products, adult care products, and paper tissues. With a strong presence in the Mexican market, Kimberly-Clark de Mexico is well-known for its trusted brands, including Huggies, Kleenex, and Kotex.
How the Company Makes MoneyKimberly-Clark de Mexico makes money primarily through the sale of its consumer and professional hygiene products. Revenue streams include retail sales of its branded products to individual consumers through supermarkets, pharmacies, and other retail outlets across Mexico. The company also generates income from B2B sales of professional-grade products and solutions designed for businesses, healthcare institutions, and other organizations. Significant partnerships with retailers and distributors enhance its market reach, contributing to its financial performance. Additionally, Kimberly-Clark de Mexico benefits from economies of scale and brand recognition, which help maintain its competitive edge in the market.
Kimberly-Clark de Mexico SAB de CV Financial Statement Overview
Summary
Kimberly-Clark de Mexico SAB de CV demonstrates a healthy financial profile with strong income statement performance, driven by consistent revenue and profit growth. While the balance sheet indicates high leverage, the company balances this with rising equity and solid ROE. The cash flow statement highlights robust cash generation, supporting continued operational and financial health. Overall, the company is well-positioned in the consumer products industry, with potential risks mitigated by strong cash flows and profitability.Income Statement
Strong revenue growth with a consistent increase from 2019 to 2024, indicative of an upward trajectory. Gross profit margin and net profit margin are solid, reflecting efficient cost management and profitability. EBIT and EBITDA margins also demonstrate robust operational efficiency. Recent year-over-year revenue growth from 2023 to 2024 was approximately 2.76%, signaling stable expansion.87
Very Positive
Balance Sheet
The debt-to-equity ratio is high due to significant leverage, which poses a potential risk. However, the equity ratio shows a steady improvement, suggesting an increase in equity relative to assets. Return on Equity (ROE) is healthy, indicating good profitability relative to shareholders' equity. The company's balance sheet reflects strong asset management with increasing stockholders' equity over time.73
Positive
Cash Flow
Operating cash flow exceeds net income consistently, indicating strong cash generation. Free cash flow has grown steadily, with a notable increase from 2023 to 2024, reflecting effective capital expenditure management. The free cash flow to net income ratio is favorable, showcasing the company's ability to generate cash relative to its earnings.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 54.78B | 53.31B | 51.06B | 46.89B | 46.70B | Gross Profit |
| 22.38B | 20.70B | 16.77B | 15.79B | 18.01B | EBIT |
| 12.85B | 11.93B | 8.94B | 8.35B | 10.54B | EBITDA |
| 16.09B | 15.23B | 11.58B | 10.79B | 13.09B | Net Income Common Stockholders |
| 7.83B | 7.01B | 4.94B | 4.49B | 6.09B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 17.09B | 16.86B | 16.92B | 12.27B | 17.74B | Total Assets |
| 52.11B | 53.92B | 53.54B | 48.78B | 53.32B | Total Debt |
| 28.10B | 29.72B | 34.15B | 29.83B | 33.19B | Net Debt |
| 12.52B | 12.87B | 17.23B | 17.56B | 15.45B | Total Liabilities |
| 44.70B | 47.00B | 48.51B | 43.06B | 47.62B | Stockholders Equity |
| 7.41B | 6.92B | 5.03B | 5.72B | 5.81B |
| Cash Flow | Free Cash Flow | |||
| 8.10B | 11.08B | 6.18B | 4.65B | 9.52B | Operating Cash Flow |
| 10.60B | 12.76B | 8.32B | 6.80B | 10.33B | Investing Cash Flow |
| -1.30B | -311.39M | -2.15B | -2.14B | -795.28M | Financing Cash Flow |
| -13.50B | -9.83B | -1.32B | -11.07B | 2.02B |
Kimberly-Clark de Mexico SAB de CV Technical Analysis
Positive
8.13
Price Trends
7.52
Positive
7.24
Positive
7.84
Positive
Market Momentum
0.10
Negative
64.52
Neutral
100.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KCDMY, the sentiment is Positive. The current price of 8.13 is above the 20-day moving average (MA) of 7.85, above the 50-day MA of 7.52, and above the 200-day MA of 7.84, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 100.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KCDMY.
Kimberly-Clark de Mexico SAB de CV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $394.80B | 26.83 | 31.05% | 2.39% | 0.49% | 5.02% | |
78 Outperform | $73.70B | 25.88 | 704.02% | 2.20% | 3.30% | 26.83% | |
76 Outperform | $4.88B | 11.41 | 112.86% | 5.66% | 0.05% | 9.32% | |
74 Outperform | $27.60B | 47.33 | 14.25% | 1.05% | 4.08% | -22.34% | |
71 Outperform | $47.79B | 19.08 | 290.03% | 3.49% | -1.83% | 45.13% | |
66 Neutral | $18.29B | 40.57 | 7616.67% | 3.29% | -1.98% | 474.83% | |
62 Neutral | $20.42B | 13.31 | -10.71% | 7.44% | 1.57% | 8.35% |
* Consumer Defensive Sector Average
Performance Comparison
KCDMY
Kimberly-Clark de Mexico SAB de CV
8.13
-2.69
-24.86%
CHD
Church & Dwight
109.76
6.51
6.31%
CLX
Clorox
146.95
0.10
0.07%
CL
Colgate-Palmolive
90.52
4.05
4.68%
KMB
Kimberly Clark
140.14
19.62
16.28%
PG
Procter & Gamble
168.59
10.98
6.97%
Kimberly-Clark de Mexico SAB de CV Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 12.76% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with significant achievements in sales and cost management, offset by challenges in export volumes, gross profit, and exchange rate impacts. The company remains optimistic about future growth through category and geographic expansion.Highlights
Record Sales and EBITDA
Sales for the year reached MXN 54.8 billion, a 2.8% increase, and EBITDA was MXN 14.9 billion, both being all-time records. Net income also hit an all-time record at MXN 7.8 billion.
Strong Performance in Consumer Products
Consumer Products sales grew 3.1% for the quarter, with a volume growth of 2.4% year-over-year and sequential sales increase of 7.8%.
Effective Cost Reduction Program
The cost reduction program yielded approximately MXN 1.7 billion in savings for the year, including MXN 500 million in the fourth quarter alone.
Healthy Financial Position
The company ended the year with a cash position of MXN 15.6 billion and a net debt-to-EBITDA ratio of 0.8x.
Future Growth Plans
Plans to enter new categories and geographies, with expected double-digit growth in certain categories and a high single-digit dividend increase proposed.
Lowlights
Decreased Gross Profit and Operating Profit
Gross profit decreased by 1.1%, and operating profit dropped by 7.3% for the quarter due to higher SG&A expenses and a onetime charge related to manufacturing restructuring.
Export Volume Decline
Export volumes were down 15.1% year-over-year, although this was partially offset by a price/mix increase of 22.2%.
Increased SG&A Expenses
SG&A expenses rose 7.5% year-over-year, with a significant impact on operating margin, which decreased by 230 basis points compared to the previous year.
Challenges with Exchange Rate and Raw Material Costs
The exchange rate was 14% higher, impacting costs, and certain raw material costs such as softwood pulp are expected to remain high.
Company Guidance
In the Q4 2024 earnings call for Kimberly-Clark de México, the company provided comprehensive guidance for the upcoming year. They reported a 3% increase in sales to MXN 13.8 billion, with a volume growth of 0.5% and a price/mix increase of 2.5%. Consumer Products and exports boosted sales, with the latter experiencing a 7.1% growth despite a 15.1% decline in volume. The cost of goods sold rose by 5.8%, but an effective cost reduction program saved MXN 500 million, maintaining a gross margin of 39.1%. The company plans to implement selective price increases, aiming for an average annual increase of 4%, and targets record savings between MXN 1.8 billion and MXN 2 billion through continued cost efficiencies. Additionally, they are projecting a medium-term base growth rate in the mid-single digits, supported by core categories and innovation. Kimberly-Clark de México also announced a high single-digit dividend increase and a ramp-up in the stock buyback program, underscoring their commitment to returning value to shareholders.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.