Kimberly-Clark Corporation (KMB): What Does The Future Look Like?
Based on the latest analyst predictions, Kimberly-Clark Corporation (NYSE:KMB) is estimated to sizably grow its earnings by 22.66% in the upcoming three years. At a current EPS of $6.023, this growth rate means shareholders can expect an impending EPS of $7.388. I am going to look at the latest data on KMB to assess whether this expected growth is reasonable. View our latest analysis for Kimberly-Clark
Can we expect KMB to keep growing?
KMB is covered by 11 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $6.023 to $7.388 in a few years. This indicates a relatively solid earnings per share growth rate of 22.66% over the next few years, which is an optimistic outlook in the near term. In the same period we will see the revenue grow from $18,175M to $19,610M and profits (net income) are predicted to slightly grow from $2,149M to $2,636M in the next couple of years, roughly growing 1.2x. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. KMB’s earnings growth in the last five years was a unexciting 1.54%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For KMB, I’ve put together three relevant aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is KMB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KMB is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of KMB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
