ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kimberly-Clark's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 17.04%.
As of today (2026-06-25), Kimberly-Clark's WACC % is 6.02%. Kimberly-Clark's ROIC % is 13.61% (calculated using TTM income statement data).
Kimberly-Clark generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Kimberly-Clark (CHIX:KMYd) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Kimberly-Clark's WACC % is 6.02%. Kimberly-Clark's ROIC % is 13.61% (calculated using TTM income statement data).
Kimberly-Clark generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Kimberly-Clark ROIC % Related Terms
Kimberly-Clark ROIC % Historical Data
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The historical data trend for Kimberly-Clark's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Household & Personal Products subindustry, Kimberly-Clark's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kimberly-Clark ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kimberly-Clark's ROIC % distribution charts can be found below:
* The bar in red indicates where Kimberly-Clark's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kimberly-Clark (CHIX:KMYD) has a ROIC % of 17.04% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Kimberly-Clark and its competitors.
Is Kimberly-Clark's ROIC % too high?
Kimberly-Clark's current ROIC % is 17.04%. The Consumer Packaged Goods industry median ROIC % is 5.16. Kimberly-Clark's value of 17.04% is 230.2% above this industry median. Overall, Kimberly-Clark has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kimberly-Clark's ROIC % compare to EL and KVUE?
Kimberly-Clark's ROIC % of 17.04% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.16. Kimberly-Clark's value of 17.04% is 230.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.16, based on 1,948 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kimberly-Clark's current ROIC % of 17.04% is 230.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Kimberly-Clark and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kimberly-Clark's current ROIC % is 17.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kimberly-Clark stock overvalued right now?
Based on GuruFocus' analysis, Kimberly-Clark (CHIX:KMYD) is currently considered Modestly Undervalued. The stock's GF Value™ is €108.12, compared to a current price of €90.47 — trading 16.3% below its estimated fair value. The current ROIC % is 17.04% and 230.2% above the Consumer Packaged Goods industry median of 5.16. Kimberly-Clark's overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Kimberly-Clark (CHIX:KMYD), the current ROIC % is 17.04% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kimberly-Clark (CHIX:KMYD) Overvalued in 2026?
Based on GuruFocus' analysis, Kimberly-Clark stock appears to be undervalued.
The current stock price of €90.47 is trading 16.3% below its estimated GF Value™ of €108.12.
GuruFocus considers Kimberly-Clark to be Modestly Undervalued.
Key valuation signals for CHIX:KMYD:
ROIC %: 17.04%
GF Value™: €108.12 vs. price of €90.47 (16.3% below fair value)
Industry Position: 230.2% above the Consumer Packaged Goods median
No single metric tells the full story. See the CHIX:KMYD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With more than half of its sales from personal care and another third from consumer tissue products, Kimberly-Clark is a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates in the professional segment, partnering with businesses to provide workplace safety and sanitation solutions. Kimberly-Clark generates just over half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America. It is slated to add Kenvue's consumer health portfolio to its mix in the second half of calendar year 2026.
56GF Score
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