Why Kimberly-Clark Corp. Shareholders Have Something to Worry About

Because it sells a diverse mix of consumer staples, Kimberly-Clark (NYSE: KMB) rarely struggles to produce steady earnings growth. Operating profit ticked higher in each of the last two years, and management recently confirmed its outlook that calls for another boost in 2017.

Sales growth is another story, though. Kimberly-Clark's expansion pace is weak and getting weaker. And if management doesn't find a way to speed it back up, the revenue slump will eventually pinch earnings and send total shareholder returns lower.

Organic sales improved at a solid 5% clip in 2015 as the company executed well at marketing its core Kleenex, Huggies, and Cottonelle franchises in both developed and developing economies.

Source: Fool.com