Scoreboard Buy of the Week - $KMB
Ticker: $KMB
Account: Roth IRA
Date: 2/21/23
Qty: 1 share
Price: $126.62

I was over my 2% cash target in my Roth IRA, so I bought another share of $KMB. 3rd week in a row adding to $KMB.

$KMB was tied for highest rated in portfolio at 4.5/6. Held tie breaker over $HSY, $OZK and $LOW because it is the most underweight holding.

PADI increased from $227.35 to $231.44.

Average Cost Basis from $129.90 to $129.49.

7.0907 total shares. Moves from 4th to 3rd largest holding in portfolio.

Scorecard Breakdown:
S&P Cost Basis Rank - +1. Average Cost Basis vs S&P is +8.77% since 1/18/22.
FCF Rank - +0.5. Dividend/FCF is at 90.5%, greater than 50%.
Conviction Rank - +0.5. Medium. Steady CPG company.
Dividend Yield - +0.5. 3.63% is greater than portfolio average of 2.41%, but less than top 5% of 4.91%.
Weighting - +1. Current allocation of 8.2% vs target of 20%.
P/E - +1. P/E of 22.24 is less than 25.

Probably will continue to add in the coming weeks and months. The only thing that will probably drop the score is if P/E gets over 25, which would mean a stock price increase to $143. That would be a pretty significant jump for this steady compounder and would be right around its 52-week high.

For now, I'll take the dividend and continue to build a bedrock position.
Joshua Simka's avatar
Serious question:

A lot of Americans embraced the bidet during the pandemic, when toilet paper was in short supply.

Do you think increased adoption of the bidet poses a long-term threat to $KMB?

Image upload
Scoreboard Investor's avatar
@tomato potentially…?

I don’t think babies will be using bidets any time soon so I think the diaper business is safe.

Even if homeowners use a bidet, you’re probably not going to invite friends/family over and ask them to use the bidet as well. Toilet paper will still be required

Also, Scott industrial brands in public spaces will (most likely) not be replaced with bidets

So in summary, maybe a small drop but I don’t think it is a long term concern



Already have an account?