Kimberly-Clark Corp.

Kimberly-Clark has also benefited from favorable commodity prices over the last year, particularly with respect to pulp. These tailwinds have been abating recently, and we expect that a less -favorable commodity environment could pressure margins in 2021. Nevertheless, we expect modest profit improvement, driven by cost savings from the company's ongoing FORCE productivity and global restructuring programs as well as a roll off of restructuring costs. The stable outlook reflects our expectation for steady operating performance and stable credit metrics. We forecast low-single digit percent revenue and EBITDA growth over the next couple of years, and we believe Kimberly-Clark will return substantially all free cash flow to shareholders. We expect this will keep long-term leverage around or slightly below 2x.

...We expect modest profit improvement in 2021 as benefits from the company's global restructuring program are offset by flattening organic growth and a less-favorable commodity environment. Heightened consumer demand for Kimberly-Clark Corp.'s products in response to the COVID-19 pandemic has led to strong organic growth in 2020. The company initially benefited from significant pantry loading in the early stages of the pandemic, but growth in its consumer tissue segment has remained robust due to consumers spending more time at home, leading to higher usage in home settings. This has been partly offset by softness in its professional segment for the same reason. We expect that total organic sales growth will flatten over the next year as the company faces tough year-over-year comparisons and consumers gradually increase time spent away from home. Kimberly-Clark has also benefited from favorable commodity prices over the last year, particularly with respect to pulp. These tailwinds have been...

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