Key statistics

Is KMB a good stock to buy in 2026?

Kimberly-Clark (KMB) presents an intriguing picture for investors, boasting a P/E ratio of 15.44x, which is notably below the Household & Personal Products sector average of 20x. Furthermore, a discounted cash flow (DCF) analysis suggests a fair value of $178.46, indicating a significant 81.4% undervaluation against its current price. While 32.3% of analysts rate KMB stock as a Buy, a majority currently hold a “Hold” consensus, reflecting a balanced view on its near-term prospects. This is not investment advice.

2026 KMB price scenarios

Based on analyst consensus of $103.75 from 31 analysts. Not a prediction by Alert Invest.

About Kimberly-Clark Corporation (KMB)

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment offers disposable diapers, swimpants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names.

Kimberly-Clark Corporation is steered by CEO Michael D. Hsu, leading a global workforce of approximately 38,000 employees. The company’s distinctive strengths lie in its deeply entrenched brand portfolio, which includes household names like Huggies, Kotex, and Kleenex, providing a stable foundation in the consumer defensive sector. This strong brand equity and global distribution network allow Kimberly-Clark to maintain significant market positions and navigate economic fluctuations more effectively than many peers.

KMB competitive moat and business analysis

1. Kimberly-Clark’s competitive advantage is primarily rooted in its powerful brands and expansive global distribution network. The company benefits from a solid gross margin of 35.86%, a net margin of 12.81%, and an EBITDA margin of 18.52%, indicating a healthy ability to convert sales into profit. While specific Return on Equity (ROE) and Return on Invested Capital (ROIC) figures are not available, the strong margins suggest efficient capital deployment in its core operations, despite the high debt-to-equity ratio.

2. Kimberly-Clark’s revenue streams are diversified across its three main segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment, with brands like Huggies and Kotex, is particularly critical, generating significant sales from essential products. Geographically, the company maintains a broad international footprint, ensuring a spread of risk and access to diverse consumer markets, which is a hallmark of defensive stocks.

3. The company’s moat has faced recent challenges, as evidenced by a year-over-year revenue decline of -14.2%. This decline, while concerning, needs to be evaluated in the context of broader market dynamics and potential one-off factors. Sustaining its competitive advantage will hinge on its ability to innovate within its product lines and optimize its global supply chain to regain growth momentum. Without a transcript quote, specific management commentary on this trend is unavailable.

4. When evaluating KMB stock against its peers such as Ambev (ABEV), Archer-Daniels-Midland (ADM), and Church & Dwight (CHD), Kimberly-Clark typically stands out for its pure-play focus on personal and household paper products. While ABEV offers exposure to beverages and ADM to agricultural processing, CHD provides a more direct comparison with its diverse portfolio of consumer household items. Each peer offers a different risk-reward profile within the broader Consumer Defensive sector, making a detailed comparison essential for discerning investors. For an in-depth look at how KMB stacks up, investors can review KMB vs ABEV, KMB vs ADM, and KMB vs CHD.

Kimberly-Clark Corporation analyst rating

Based on 31 analysts. 32.3% rate KMB Buy or Strong Buy.

The 32.3% “Buy” rating for KMB stock, while not a strong majority, is generally considered reasonable for a mature Consumer Defensive company. These stocks are often favored for stability and dividends rather than aggressive growth, which can lead to a higher proportion of “Hold” ratings among analysts.

Is KMB undervalued or overvalued?

Assessing the KMB valuation reveals a mixed but generally favorable picture. Its P/E ratio of 15.44x is considerably lower than the sector average of 20x, suggesting that KMB stock may be undervalued relative to its peers on an earnings basis. Crucially, a discounted cash flow (DCF) analysis points to a fair value of $178.46, indicating a substantial 81.4% potential upside from the current price, which is a strong signal for value investors.

While the P/S ratio of 1.98x also indicates a reasonable valuation, the high P/B ratio of 18.22x suggests that a significant portion of the company’s value is derived from intangible assets, such as brand equity, rather than tangible book value. Despite this, the strong DCF valuation signals that, based on future cash flow generation, Kimberly-Clark’s intrinsic value is considerably higher than its current market price, making KMB stock an interesting candidate for those seeking undervalued opportunities.

KMB financial health & key metrics

For value investors, KMB stock presents a mixed but potentially appealing profile. Its P/E ratio of 15.44x is lower than the sector average, and the strong discounted cash flow (DCF) fair value of $178.46 suggests significant undervaluation. This, combined with a robust 7.88% free cash flow (FCF) yield, points to solid operational profitability. However, a high debt-to-equity ratio of 3.94x and a notable -14.2% revenue decline are areas requiring careful consideration, suggesting that while KMB valuation looks attractive, there are underlying financial and growth challenges to monitor.

Kimberly-Clark Corporation earnings history & next report

Kimberly-Clark Corporation reported EPS of $1.97, beating estimates by 2.07%. Next earnings: 2026-08-07 with EPS estimate of $2.03.

Kimberly-Clark Corporation reported EPS of $1.97, beating estimates by 2.07%. The next earnings report is scheduled for 2026-08-07, with an estimated EPS of $2.03. Investors should closely watch for any commentary on sales trends given the recent -14.2% revenue decline, updates on strategies to mitigate rising input costs, and future guidance for both revenue and earnings, which will be crucial for assessing the company’s trajectory in the competitive household and personal products market.

KMB daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

KMB insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent KMB analyst rating changes

Kimberly-Clark Corporation stock news today

How does KMB compare to its peers?

Within the Consumer Defensive sector, Kimberly-Clark Corporation (KMB) operates alongside a diverse set of companies. While all aim to provide stable returns through consumer staples, their specific niches and market dynamics can vary significantly. Analyzing KMB’s performance against its peers offers crucial context for investors evaluating its long-term potential.

FAQ — Kimberly-Clark Corporation (KMB) stock