Kimberly-Clark Corporation: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street. The company is working hard towards increasing the organic sales and it did manage to go a few steps forward towards its goal resulting in an earnings beat. The distribution production cost remains high, especially in the international market. Despite that fact, the company managed to get 1/3rd of profit from the international market in the last quarter. There

Kimberly-Clark Corporation: New Facility For Feminine Care & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Kimberly-Clark had a mediocre performance in its recent results. The company surpassed the revenue expectations of Wall Street but missed out on earnings given the ongoing volatility in operating environment that continues to pressure the operating margin and the overall bottom-line. There has been a continued organic sales development momentum that reflects wide gains in every segment. There have been sequential improvement in terms of impact. On the fiber and pulp components, the prices remain

Kimberly-Clark Corporation: The Thinx Acquisition & Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)

Kimberly-Clark Corporation had a decent quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings. The company delivered an impressive 9% growth in organic sales with all segments delivered robust gains. Kimberly-Clark’s management also continued its focus on expanding its margins through pricing actions. The company navigates near-time headwinds based on near-time headwinds of breadth and pace of its pricing actions. It has struck a good balance in both pr

Kimberly-Clark Corporation: Cost Control & Optimization Efforts, Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (06/22)

Kimberly-Clark started the year 2022 with a strong performance in all segments including a double-digit organic sales growth. During a period of high volatility and inflation, the company managed a decent performance and is accelerating its expansion by developing strong commercial capabilities and deploying them with local agility. The management is effectively counteracting macro headwinds, balancing price, volume, and market share while working to increase their margins over time. Simultaneou

Kimberly-Clark Corporation: Financial & Price Forecasts, DCF Valuation, ESG & Other Risks (04/22)

Kimberly-Clark had a strictly mediocre financial performance in 2021 and struggled to pass inflationary impact back to the consumer. The input costs were elevated and the disruptions in the supply chain restricted the ability of the company to meet the growing demand of consumers. Kimberly-Clark has taken significant pricing actions, and the pricing is expected to offset the impact of cost inflation. These actions did facilitate the company to provide progress in organic sales and refine the net

Kimberly-Clark Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (04/2022)

Like most of its consumer goods peers, Kimberly-Clark also struggled with its margins in 2021 given the pricing actions and the constant struggle to pass inflationary impact back to the consumer. Its input costs were elevated and the disruptions in the supply chain restricted the ability of the company to meet the growing demand of consumers. Kimberly-Clark has taken significant pricing actions, and the pricing is expected to offset the impact of cost inflation. These actions did facilitate the

Procter & Gamble vs. Kimberly-Clark: Which Consumer Goods Major Is Financially More Stable? (12/2021)

Consumer goods companies are currently facing their fair share of challenges in terms of rising input costs associated with the U.S. inflation being at an all-time high (close to 6.8%), labor issues, and supply chain problems. Behemoths like P&G and Kimberly-Clark are no exception to this rule. Both these companies enjoyed their fair share of benefits during the pandemic lockdowns with their product range being classified in the 'essentials' category. Both of them have been slow but sure perform

Kimberly-Clark Corp - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/29

Like most consumer goods companies, Kimberly-Clark continued its battle with inflationary pressures during the quarter and delivered below-par earnings. The company is suffering from supply chain disruptions and rising input costs. Kimberly-Clark’s revenue performance was decent and benefitted 4% from higher organic sales, 3% from a rise in the net selling price, 2% from its Global Restructuring Program, and 1% from forex factors. As a matter of fact, its K-C Professional segment was a strong ou

Kimberly-Clark Corp - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 8/21

Kimberly-Clark suffered from a weak result which was a stark contrast to the company’s record strong growth in the year-ago quarter. The company failed to meet analyst expectations in terms of revenues as well as earnings and the only silver lining was the personal care organic sales growing by 6% worldwide, driven by a 4% volume increase. The company saw a decent personal care organic sales performance in markets like China, Brazil, Eastern Europe, Peru, India, and South Africa. Their K-C Profe

Surface Transforms - New guidance – forecasts under review

Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.

Surface Transforms plc (SCE LN) - Forecasts and valuation withdrawn

We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.

Morning Note – 16 April 2024

Robust margin and cash performance

Surface Transforms (SCE LN) - Obstacles removed for higher production

Surface has issued a brief Q1 update. Production will ramp-up this year as final new equipment is installed, and manufacturing teething problems recede.

Initial Equity Trading Comments - 19 February 2024

Hybridan Small Cap Feast - 16/04/2024

16th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for

Dowlais Group - Motoring forward

Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.

Morning Note – 9 April 2024

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Morning Note – 4 April 2024

LIBERUM: New Energy Nuggets: Hydrogen - the future is green

Hybridan Small Cap Feast - 17 April 24

17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Gooch & Housego (GHH LN) - A chink of light

Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on

Nexteq - FY23 adj EBITDA +4% ahead, FY24E upgrades of +1-10%

Nexteq’s FY23 results show adjusted EBITDA +4% ahead of the +6% upgrade at the January trading update, record FY23 EFCF of $17.4m, and a confident outlook that leads us to reiterate our FY24E revenue and upgrade FY24E gross profit, adj EBITDA, and EFCF by +1-10%. The strategic focus on higher-margin products and customers reducing elevated inventory levels led FY23 group revenue -5% yoy to $114.3m, with Quixant 6% lower at $69.3m and Densitron 2% lower at $45.1m. Effective supply-chain managemen