KMBCAUTIOUS

KMB Return on Equity (ROE) Analysis

104.9%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity, so a 104.9% ROE means KMB produced $1.05 of profit for every $1 of equity invested.

Sector Performance

97th percentile

KMB

104.9%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

111.7%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity, so a 104.9% ROE means KMB produced $1.05 of profit for every $1 of equity invested.

That level is far above the sector median of 13.9%, placing the company in the 97th percentile of its peers. The 8-quarter trend is not available, and the year-over-year change is also N/A; the most recent quarter shows a 6.1% decline from the prior quarter's 111.7%. This combination of an extremely high ROE with a recent quarterly drop signals that while KMB is exceptionally efficient versus peers, it may be losing some momentum. The elevated level itself supports a cautious view because such high returns can attract competition or reflect a narrow equity base that is sensitive to small profit changes. The quarterly fall adds to that caution, and the overall CAUTIOUS verdict is directly supported by this metric.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about KMB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are KMB's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.