
NYSE:KMB
This summary was created by AI, based on 11 opinions in the last 12 months.
Kimberly Clark (KMB) is perceived as a reliable consumer staples stock that trades at a low price-to-earnings ratio (around 13x), reflecting a 10-year low valuation. Experts highlight its well-established brands and its status as a dividend stalwart, with over 50 consecutive years of increasing dividends, currently offering a yield of around 4.75-5%. The market has reacted negatively to its recent merger with Kenvue, causing stock price declines despite the potential for synergies and growth from the acquisition. Experts express caution due to current earnings growth projections of only 4%, but some believe that if the merger goes well and ongoing litigation is resolved, it could lead to more attractive returns. Overall, the stock is viewed as a steady, albeit boring, investment worth considering for dividend-focused portfolios.
They delivered an okay quarter. The dividend is 3.5%. You can buy this and put it away while collecting the 3.5. Investors hate these stocks now, like Clorox, though he likes them.
UFS-N vs. KMB-N. UFS-N has a nice balance sheet that is well protected and a dividend north of 4%. It is a well run company with a defensible market share when you look at some of the fast growth markets they have been trying to address like Asia. They have been keen to ramp up their exports to Asia. He would refer UFS-N at these valuations.
Over the last couple of years, they have been working hard on the internal workings of their business. Have been reorganizing, cutting costs and rationalizing. This is as a result that their business is a slow growth one. Thinks they have done a good job in terms of reorganizing. The difficulty is not with what management has done, but is the price that the market is looking for him to pay, close to 20X earnings. He doesn’t understand why a slow growth company like this would demand a 20 multiple.
Great company and wonderful brands. Spinning off their healthcare division, and doing so at a wonderful valuation. Going to have a lot of cash which he sees as being used for share buybacks. This is a company with which you can sleep well at night. If it fell off 5%-10% more, it would be one he would consider.