Like many other global leading household and personal care peers that have developed strong retailer relationships, Kao's key to improving ROICs is investing wisely in its product segments and countries. This boils down to whether the brands remain competitive in their categories and whether investments in marketing deliver satisfactory returns.
Turnaround in the cosmetics business following the restructuring in 2023 could raise Kao’s operating margins notably, as the business is currently a drag on profits.
Profitability for the cosmetics business has remained suppressed despite management’s brand restructuring efforts over the past decade, which casts doubt on the margin outlook of this segment.
|
Metric
|
4452
|
BEI
|
KMB
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.89 | 12.97 | 15.02 |
Price/Book Value | 2.81 | 1.84 | 17.93 |
Price/Sales | 1.82 | 1.72 | 1.90 |
Price/Cash Flow | 15.14 | 14.09 | 10.60 |
|
Metric
|
4452
|
BEI
|
KMB
|
|---|---|---|---|
Quick Ratio | 1.13 | 1.50 | 0.40 |
Current Ratio | 1.80 | 2.00 | 0.91 |
Interest Coverage | 40.39 | 42.97 | 10.40 |
|
Metric
|
4452
|
BEI
|
KMB
|
|---|---|---|---|
Return on Assets (Normalized) | 7.39% | 7.60% | 10.43% |
Return on Equity (Normalized) | 12.73% | 11.37% | 117.92% |
Return on Invested Capital (Normalized) | 10.32% | 10.80% | 22.28% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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KMB
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United States