Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Kimberly-Clark's disappointing performance in recent years is hardly a surprise and does not make the company a bargain.</li>
<li>The short-term perspective on margins remains mixed, in spite of the management's optimism.</li>
<li>KMB could no longer support these activities, according to the company's management.</li>
</ul>


Kimberly-Clark's disappointing performance in recent years is hardly a surprise and does not make the company a bargain.
The short-term perspective on margins remains mixed, in spite of the management's optimism.
KMB could no longer support these activities, according to the company's management.


Kimberly-Clark: Short-Term Tailwinds, But Little Hope For The Long Run

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>It was a solid start to the year for Kimberly-Clark.</li><li>The company delivered an all-around beat with organic growth of 5% and reliable performance in category growth.</li><li>Given this performance, Kimberly-Clark raised its 2023 EPS outlook to 6% to 10% growth.</li></ul>

It was a solid start to the year for Kimberly-Clark.The company delivered an all-around beat with organic growth of 5% and reliable performance in category growth.Given this performance, Kimberly-Clark raised its 2023 EPS outlook to 6% to 10% growth.

Kimberly Clark Corporation: The Costs Seem To Be Stabilizing! – Key Drivers

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kenvue-inc" target="_blank" data-smartkarma-citation="entities:36755:1" rel="noopener">Kenvue (KVUE US)</a>, a wholly owned subsidiary of <a href="https://www.smartkarma.com/entities/johnson-johnson" target="_blank" data-smartkarma-citation="entities:1132:1" rel="noopener">Johnson &amp; Johnson (JNJ US)</a>, is preparing for an IPO of 151M shares. The IPO price is expected to be $20–23/share.  </li>
<li>Goldman Sachs, J.P. Morgan, and BofA Securities are acting as joint lead bookrunning managers for the IPO. J&amp;J will still own more than 90% of Kenvue’s shares after the IPO.</li>
<li>In 1Q23, Kenvue’s revenue increased 7% YoY to $3.9B, driven by a 12% YoY revenue growth in self-care OTC products. Adjusted net income increased 3% YoY to $630M.</li>
</ul>



Kenvue (KVUE US), a wholly owned subsidiary of Johnson &amp; Johnson (JNJ US), is preparing for an IPO of 151M shares. The IPO price is expected to be $20–23/share.  
Goldman Sachs, J.P. Morgan, and BofA Securities are acting as joint lead bookrunning managers for the IPO. J&amp;J will still own more than 90% of Kenvue’s shares after the IPO.
In 1Q23, Kenvue’s revenue increased 7% YoY to $3.9B, driven by a 12% YoY revenue growth in self-care OTC products. Adjusted net income increased 3% YoY to $630M.


Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth

<ul>
<li>Kimberly-Clark's stock has enjoyed a brief period of at-par performance with the rest of the equity market.</li>
<li>Some of the tailwinds that made this rally possible are dissipating and are unlikely to provide a sustainable tailwind for shareholders.</li>
<li>In recent years, it has been next to impossible to conceive a long investment thesis for Kimberly-Clark (<span class="ticker-hover-wrapper">NYSE:<a href="https://www.smartkarma.com/search?q=KMB" target="_blank" rel="noopener">KMB</a></span>).</li>
</ul>


Kimberly-Clark's stock has enjoyed a brief period of at-par performance with the rest of the equity market.
Some of the tailwinds that made this rally possible are dissipating and are unlikely to provide a sustainable tailwind for shareholders.
In recent years, it has been next to impossible to conceive a long investment thesis for Kimberly-Clark (NYSE:KMB).


Kimberly-Clark: Short-Term Tailwinds Dissipate

<ul><li>Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street.</li><li>Despite that fact, the company managed to get 1/3rd of profit from the international market in the last quarter.</li><li>The new products created by Kimberly-Clark in the last 3 years have contributed to 60% of the total sales growth in 2022.</li></ul>

Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street.Despite that fact, the company managed to get 1/3rd of profit from the international market in the last quarter.The new products created by Kimberly-Clark in the last 3 years have contributed to 60% of the total sales growth in 2022.

Kimberly-Clark Corporation: Major Drivers

United States

Kimberly-Clark Corporation is a global health and hygiene company that manufactures and provides consumer products. The Company's products include diapers, tissues, paper towels, incontinence care products, surgical gowns, and disposable face masks.  Kimberly-Clark's products are sold in countries around the world.

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Kimberly Clark (KMB US)

Kimberly-Clark: Short-Term Tailwinds, But Little Hope For The Long Run

Kimberly-Clark's disappointing performance in recent years is hardly a surprise and does not make the company a bargain.

Vladimir Dimitrov, CFA

Kimberly Clark Corporation: The Costs Seem To Be Stabilizing! – Key Drivers

It was a solid start to the year for Kimberly-Clark. The company delivered an all-around beat with organic growth of 5% and reliable performance...

Baptista Research

Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth

J&J’s consumer health spin-off entity Kenvue is preparing for NYSE IPO. The IPO has been priced at $20–23 per share to raise ~$3.2B. Goldman Sachs,...

Tina Banerjee

Kimberly-Clark: Short-Term Tailwinds Dissipate

Some of the tailwinds that made this rally possible are dissipating and are unlikely to provide a sustainable tailwind for shareholders.

Vladimir Dimitrov, CFA

Kimberly-Clark Corporation: Major Drivers

Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street. Despite...

Baptista Research

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