OCEN - Downside Risks To Kimberly-Clark's Share Price Are Mounting

• Kimberly-Clark has a fantastic business that has been around for 150 years. It's not going away anytime soon.
• Inflationary pressures are taking a bite out of Kimberly-Clark's operating profits, and price increases haven't been enough to keep things moving in the right direction.
• The company has a massive net debt position and is trading at a lofty 19.6x expected 2023 consensus earnings forecasts. Downside risks are mounting given such valuation considerations.
• Kimberly-Clark ~3.5% dividend yield may not offer sufficient price support to stem a decline, should operating profit continue to face severe pressure in coming years due to input cost inflation.
• The low end of our fair value estimate range stands at $104 per share, while our point fair value estimate stands at $130. Dividend growth investors should take caution.

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