Kimberly-Clark Corp. (KMB) 10-K Red Flags
Risk signals extracted deterministically from Kimberly-Clark Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (17)
- Receivables outpacing revenue: Accounts receivable grew -5.8% YoY vs revenue growth of -18.0%. The +12.2% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Free cash flow deteriorating: FCF declined +34.8% YoY (from $2.51B to $1.64B). With OCF at $2.78B and capex at $1.14B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
- Operating cash flow exceeds net income: OCF is 1.37x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Revenue grew -18.0% but receivables grew -5.8% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: Free cash flow declined despite stable or rising capex, indicating the cash burn is operational rather than investment-driven. This is a structural concern — cost reduction or asset sales may be needed to restore FCF.
- 3 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Off-balance sheet arrangements.
- Revenue declined **+18.0%** YoY to $16.45B.
- 5-year revenue CAGR **-3.3%**; 10y CAGR -1.1%.
- Market cap $36.15B at $108.69 per share.
- Trailing P/E 17.91, P/S 2.20, P/B 20.66.
- Composite risk: Elevated.
- Leverage debt/equity 4.23 (high).
- Receivables outpacing revenue: Accounts receivable grew -5.8% YoY vs revenue growth of -18.0%. The +12.2% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Free cash flow deteriorating: FCF declined +34.8% YoY (from $2.51B to $1.64B). With OCF at $2.78B and capex at $1.14B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
Filings & ownership
- Latest annual report (10-K) filed Feb 12, 2026.
- Latest quarterly report (10-Q) filed Aug 4, 2026.
- 12 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Kimberly-Clark Corp.; broad institutional reporting.
- Recent filers include INVESTORS TRUST CO /PA, INVESTORS TRUST CO /PA, INVESTORS TRUST CO /PA.
- 20 recent 13G passive institutional ownership notices.
Full KMB analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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