Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

This company has been moved to the archive! The financial data has not been updated since April 23, 2021.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Kimberly-Clark Corp., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Kimberly-Clark Corporation 2,352 2,157 1,410 2,278 2,166
Add: Net income attributable to noncontrolling interest 44 40 35 41 53
Add: Income tax expense 676 576 471 776 922
Earnings before tax (EBT) 3,072 2,773 1,916 3,095 3,141
Add: Interest expense 252 261 263 318 319
Earnings before interest and tax (EBIT) 3,324 3,034 2,179 3,413 3,460
Add: Depreciation and amortization 796 917 882 724 705
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,120 3,951 3,061 4,137 4,165

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).


The financial performance over the examined five-year period demonstrates notable fluctuations in profitability metrics. Net income attributable to the corporation showed an initial increase from 2016 to 2017, rising from 2,166 million US dollars to 2,278 million US dollars, followed by a significant decline to 1,410 million US dollars in 2018. The subsequent years indicate a recovery and growth trend, with net income increasing to 2,157 million US dollars in 2019 and further to 2,352 million US dollars in 2020, surpassing the earlier peak.

A similar pattern is observable in earnings before tax (EBT), which decreased markedly from 3,095 million US dollars in 2017 to 1,916 million US dollars in 2018. This figure then rebounded to 2,773 million US dollars in 2019 and continued to climb to 3,072 million US dollars in 2020, nearly matching the initial 2016 level. Earnings before interest and tax (EBIT) follow this trend as well, with a dip in 2018 to 2,179 million US dollars before recovering to 3,034 million US dollars in 2019 and 3,324 million US dollars in 2020.

EBITDA reflects a reduction from 4,137 million US dollars in 2017 to 3,061 million US dollars in 2018 but demonstrates a strong rebound thereafter, reaching 3,951 million US dollars in 2019 and 4,120 million US dollars in 2020. This indicates improvements in operating cash flow generation and suggests effective management of earnings quality despite the volatility.

Key observations

The year 2018 marks a low point across all earnings measures, likely indicating a period of operational or market challenges. The subsequent recovery over 2019 and 2020 suggests strategic initiatives or market conditions that positively influenced profitability.

By 2020, earnings levels generally reached or exceeded those observed at the start of the period in 2016, highlighting resilience and potential growth in operational efficiency or market presence.

The trends between EBIT and EBITDA suggest consistent depreciation and amortization expenses across the years, with operating profitability improvements contributing to EBITDA recovery.


Enterprise Value to EBITDA Ratio, Current

Kimberly-Clark Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 52,882
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,120
Valuation Ratio
EV/EBITDA 12.84
Benchmarks
EV/EBITDA, Competitors1
Procter & Gamble Co. 17.73
EV/EBITDA, Industry
Consumer Staples 24.13

Based on: 10-K (reporting date: 2020-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Kimberly-Clark Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 52,998 57,004 46,202 46,232 50,665
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,120 3,951 3,061 4,137 4,165
Valuation Ratio
EV/EBITDA3 12.86 14.43 15.09 11.18 12.16
Benchmarks
EV/EBITDA, Competitors4
Procter & Gamble Co. 18.11 32.66
EV/EBITDA, Industry
Consumer Staples 14.89

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 52,998 ÷ 4,120 = 12.86

4 Click competitor name to see calculations.


The financial data reveals several noteworthy trends from 2016 to 2020 regarding enterprise value, EBITDA, and their ratio.

Enterprise Value (EV)
The enterprise value exhibited a decline from 2016 to 2018, decreasing from $50,665 million to $46,202 million. However, a reversal of this trend occurred in 2019 when EV rose substantially to $57,004 million, followed by a mild decrease to $52,998 million in 2020. Overall, EV showed volatility with a noticeable peak in 2019.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
EBITDA remained relatively stable between 2016 and 2017, at $4,165 million and $4,137 million respectively, before sharply declining in 2018 to $3,061 million. The figure rebounded significantly in 2019 to $3,951 million and further increased slightly to $4,120 million in 2020. This pattern indicates a recovery phase following a significant dip.
EV/EBITDA Ratio
The EV/EBITDA multiple started at 12.16 in 2016 and dropped to 11.18 in 2017, consistent with the declining EV and stable EBITDA. It then surged sharply in 2018 to 15.09 due to the disproportionate decrease in EBITDA relative to EV. The ratio slightly decreased to 14.43 in 2019 and further to 12.86 in 2020, following improvements in EBITDA and some variability in EV.

In summary, the data shows that the company's enterprise value experienced fluctuations with a peak in 2019, while EBITDA faced a notable dip mid-period but recovered subsequently. The EV/EBITDA ratio mirrored these dynamics, indicating periods where enterprise value was high relative to operating earnings and other periods reflecting improved earnings performance relative to valuation.