Report
Erin Lash
EUR 100.00 For Business Accounts Only

Rampant Inflationary Headwinds Take a Bite Out of Kimberly's Profits; Shares Fairly Valued

From our vantage point, Kimberly-Clark’s fourth-quarter results (3% organic sales growth, a 260-basis-point degradation in adjusted gross margins to 32.2%, and a 230-basis-point erosion in adjusted operating margins to 16.2%) were overshadowed by its updated strategic agenda as articulated by CEO Michael Hsu, who assumed the top spot just three weeks ago. Similar to peers, Kimberly is dissatisfied with its lackluster sales growth and intends to pursue more targeted efforts to right its ship both...
Underlying
Kimberly-Clark Corporation

Kimberly-Clark is principally engaged in the manufacturing and marketing of a range of products primarily made from natural or synthetic fibers using technologies in fibers, nonwovens and absorbency. The company is organized into three operating segments: Personal Care, which provides solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products; Consumer Tissue, which provides facial and bathroom tissue, paper towels, napkins and related products; and K-C Professional, which provides a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Erin Lash

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