
NYSE:KMB
This summary was created by AI, based on 10 opinions in the last 12 months.
Kimberly Clark (KMB) has experienced a significant decline of 5.10% this year, and while market sentiment appears lukewarm regarding its impending merger with Kenvue, experts recognize the potential for substantial returns post-merger. The consumer staples sector shows a preference for stronger performers like Walmart and Costco, with KMB struggling to achieve high earnings growth, projecting only 4%. Nonetheless, KMB's strategic pivot towards high-margin personal care products, alongside its respectable dividend yield of approximately 4.5%, presents it as an attractive option for dividend investors. Analysts are cautiously optimistic about KMB's long-term growth prospects, especially if it can navigate current litigations and restructure successfully. Yet, the stock remains below important moving averages, making it essential for investors to take a wait-and-see approach before committing.
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.