Kimberly Clark Corp. (NYSE:KMB) The stock price has remained virtually unchanged at around $120 since late 2017, mainly due to unfavorable changes in its P/S multiplier. However, during this period, the company saw a rise in its earnings per share, buoyed by higher revenue and a lower number of shares outstanding. Despite this, the stock underperformed the S&P Index, which returned just under 40% over the same period.
In our interactive dashboard, Why Kimberly Clark’s Stock Moved: KMB stock has lost 0% since 2017In this article, we detail the factors behind this move.
KMB’s total revenue grew 9.7% from US$18.3 billion in 2017 to approximately US$20.1 billion on an LTM basis.
- KMB’s total revenue gradually increased from $18.3 billion in 2017 to $19.4 billion in fiscal 2021, and then to $20.1 billion on an LTM basis.
- Kimberly Clark
It produces most paper consumer products, manufactures sanitary paper products and surgical and medical instruments.
- The personal care segment accounted for approximately 53% of the company’s sales as of fiscal year 21, and contributed $10.3 billion to total revenue.
- For additional details on KMB’s revenue and comparison with peers, see Kimberly Clark Revenue Comparison
Revenue per share increased by 15% from $51.87 in 2017 to currently $59.89
- KMB’s revenue has increased from $18.3 billion in 2017 to $20.1 billion today, while the number of shares outstanding has decreased from 353.7 million in 2017 to approximately 336 million today.
- As a result, RPS has increased from $51.87 in fiscal year 2017 to currently $59.89.
The price-to-sales (P/S) ratio for Kimberly-Clark increased from 2.2 times in 2017 to 2.5 times by the end of 2021, but has now doubled, down from its level in 2017.
- Despite slow sales growth for Kimberly-Clark between the end of 2017 to 2021, the P/S multiplier increased from 2.2 times in 2017 to 2.5 times in late 2021, on the back of increased investor expectations regarding health and hygiene products.
- However, due to the current geopolitical tensions and increased uncertainty in the broader markets, the P/E multiplier has declined, and currently stands at around 2x.
- For additional details on the company’s stock returns and their comparison with peers, see Kimberly Clark stock yield comparison.
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