Kimberly-Clark KMB FAIRLY VALUED Buying Index™ 3 Value Rating

Valuentum Retail Equity Research Ratings as of 19-Jun-2021 Data as of 18-Jun-2021

Buying Index™ 3 Value RatingEconomic Castle

Attractive

Investment ConsiderationsDCF ValuationRelative Valuation

Stock Chart (weekly) ValueCreation™ValueRisk™ValueTrend™Cash Flow GenerationFinancial LeverageGrowthTechnical EvaluationRelative StrengthMoney Flow Index (MFI)Upside/Downside Volume (U/D)Near-term Technical Resistance, 10-wk MADCF = Discounted Cash Flow; MFI, U/D = Please see glossary. MA = Moving Average

Business Quality ValueCreation™

ValueRisk™ Very Poor Poor Good ExcellentCompany Vitals Investment HighlightsMarket Cap (USD) $44,076Avg Weekly Vol (30 wks) 10,93230-week Range (USD) 128.02 - 143.37Valuentum Sector Consumer Staples5-week Return -2.7%13-week Return -5.9%30-week Return -9.0%Dividend Yield % 3.5% Firms that generate economic profits with little operating variability score near the top right of the matrix.

Dividends per Share 4.56 Relative Valuation Forward P/E PEG Price / FV

Forward Dividend Payout Ratio 61.2% Coca-Cola 24.8 3.1 133.0%Est. Normal Diluted EPS 8.48 Philip Morris 15.9 2.0 98.4%P/E on Est. Normal Diluted EPS 15.2 Procter & Gamble 23.9 2.9 130.8%Est. Normal EBITDA 4,703 Wal-Mart 25.8 1.9 124.1%Forward EV/EBITDA 12.2 Peer Median 24.3 2.4 127.4%EV/Est. Normal EBITDA 11.1 Kimberly-Clark 17.3 2.8 100.5%Forward Revenue Growth (5-yr) 3.4% Price / FV = Current Stock Price divided by Estimated Fair Value

Forward EPS Growth (5-yr) 6.8% Financial Summary ProjectedNMF = Not Meaningful; Est. = Estimated; FY = Fiscal Year

Fiscal Year End: Dec-19 Dec-20 Dec-21

Returns Summary 3-year Historical Average Revenue 18,450 19,140 19,714Return on Equity 93.3% Revenue, YoY% -0.2% 3.7% 3.0%Return on Assets 13.0% Operating Income 2,781 3,190 3,466ROIC, with goodwill 27.0% Operating Margin % 15.1% 16.7% 17.6%ROIC, without goodwill 33.2% Net Income 2,157 2,352 2,527ROIC = Return on Invested Capital; NMF = Not Meaningful Net Income Margin % 11.7% 12.3% 12.8%Leverage, Coverage, and Liquidity Diluted EPS 6.24 6.87 7.45In Millions of USD Diluted EPS, YoY % 54.7% 10.0% 8.5%Total Debt 8,364 Free Cash Flow (CFO-capex) 1,527 2,512 2,627Net Debt 8,061 Free Cash Flow Margin % 8.3% 13.1% 13.3%Total Debt/EBITDA 2.1 In Millions of USD (except for per share items)

Net Debt/EBITDA 2.0 LARGE-CEBITDA/Interest 15.8 GOODCurrent Ratio 0.8Quick Ratio 0.4

• Kimberly-Clark’s ‘Focused On Reducing CostsEverywhere’ or FORCE program is contending withheadwinds stemming from rising input costs andsupply chain disruptions. Price increases will helpoffset these headwinds to a degree.

NMF = Not Meaningful

The information and data contained in this report is not represented or warranted to be timely, complete, accurate, or correct. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this report, you should consider whether the information is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

Structure of the Household Products IndustryFirms in the household products industry sell some of the most recognized branded consumer packaged goods in the world and often hold a significant market share position in a variety of product categories. Though the industry is characterized by stiff competition from retailers’ private-label brands, constituents tend to boast meaningful competitive advantages due to their brand strength/reputation and generate high returns on invested capital. Household products companies remain tied to the vicissitudes of consumer spending, but we tend to like the structure of the group.

• In 2018, Kimberly-Clark launched its ‘2018 GlobalRestructuring Program’ which involves the firmexiting some low-margin businesses. This program isforecasted to yield $540-$560 million in annualizedpre-tax cost savings by the end of 2021.

• Kimberly-Clark has a #1 or #2 position in 80+countries, and it has five distinct billion-dollar brands:Huggies, Kleenex, Kimberly-Clark, Scott, and Kotex.The company seeks to generate long-term growth indeveloping and emerging markets. Kimberly-Clarkestimates its products are used by one-quarter of theworld’s population.

----- Actual -----

• Kimberly-Clark closed its ~$1.2 billion acquisitionof Softex Indonesia, which generated ~80% of itsrevenues from diaper sales under brands such asSweety and Happy Nappy, in October 2020 throughan all-cash deal. The company views its growthrunway in Indonesia quite favorably.

Medium

High

Low 1• Kimberly-Clark is best known for its personal careand consumer tissue brands. The firm's products areused by one-quarter of the world's population. Its'Personal Care' division accounts for ~50% of revenue.The company spun-off its KC-Health Care operationsinto Halyard Health (HYH) in 2014. It was founded in1872 and is based in Dallas, Texas. Very High

BEARISHWEAK

NEUTRALBEARISH

132.00

The week with the highest trading volume out of the last 30 weeks was a week of heavy selling, or distribution (red bar).

EXCELLENTLOW

POSITIVESTRONGMEDIUMMODEST

Kimberly-Clark’s efforts to improve its cost structure are facing headwinds from rising input costs and logistical hurdles, though price increases will help out to a degree.

FAIRLY VALUEDNEUTRAL

Industry $128.00 $102.00 - $154.00 LARGE-CAP CORE Consumer Staples Recession Resistant

Visit us at www.valuentum.com

Kimberly-Clark KMB FAIRLY VALUED Estimated Fair Value Fair Value Range Investment Style Sector

109.00

114.00

119.00

124.00

129.00

134.00

139.00

144.00

149.00

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

Valuentum Retail Equity Research (10=best) Data as of 18-Jun-2021


Attractive

Economic Profit Analysis

ValueCreation™ EXCELLENT Return on Invested Capital (ROIC)

ROIC - WACC Spread, 3-year historical average 24.4%ROIC - WACC Spread, 5-year projected average 30.8%These spreads equal the firm's annual average ROIC (excluding goodwill) less its WACC.

ValueTrend™ POSITIVE

Weighted Average Cost of Capital (WACC) The graph above shows the firm's ROIC (excluding goodwill) compared with historical averages and its WACC.

ROIC CalculationFiscal Year End: Dec-18 Dec-19 Dec-20

Earnings before InterestOperating Income after Depreciation 2,230 2,781 3,190- Adjusted Taxes (at 20% of EBIT) 446 556 638+ Amortization 0 0 0+ Non-cash Operating Items 252 -378 537- Minority Interest 35 40 44Earnings before Interest 2,001 1,807 3,045

Cost of Equity Invested CapitalRisk Free Rate Assumption Inventories 1,813 1,790 1,903Fundamental Beta (ERP multiplier) + Receivables 2,164 2,263 2,235Estimated Equity Risk Premium + Current Deferred Income Taxes 0 0 0Cost of Equity Assumption + Other Current Assets 525 562 733

+ Property, Plant and Equipment, Net 7,159 7,450 8,042After-tax Cost of Debt + Goodwill, Net (Cost in Excess) 1,474 1,467 1,895Risk Free Rate Assumption + Intangibles 0 0 832Synthetic Credit Spread + Non Current Deferred Income Taxes 0 0 0Cost of Debt Assumption - Accounts Payable 3,190 3,407 3,695Cash Tax Rate Assumption - Other Current Liabilities 2,138 1,978 2,262After-tax Cost of Debt Assumption

Invested Capital, with goodwill 7,807 8,147 9,683Cost of Preferred Stock Invested Capital, without goodwill 6,333 6,680 7,788Preferred DividendsValue of Preferred Stock Return on Invested Capital, with goodwill 24.2% 22.7% 34.2%Cost of Preferred Assumption Return on Invested Capital, without goodwill 29.7% 27.8% 42.1%

In Millions of USD

Weighted Average Cost of Capital (WACC)ERP = Equity Risk Premium

Note: Valuentum may provide an adjusted ROIC measure to better reflect the economic substance of a company's operations, as in the case of companies with negative invested capital.


20.0%5.1%

028

0.0%

8.8%

0.86.5%9.5%

4.3%2.00%

6.3%

Kimberly-Clark receives a ValueTrend™ rating of POSITIVE, which is based on thecompany's trailing three-year performance. The firm's ROIC (excluding goodwill)increased to 42.1% last year from its trailing 3-year average of 33.2%. We expect ROIC(excluding goodwill) to be in the ballpark of about 39% by the end of our discreteforecast period, with upside potential to about 48% over that time period.

---------- Actual ----------

4.3%

$128.00 $102.00 - $154.00 LARGE-CAP CORE Consumer Staples Recession Resistant

The best measure of a firm's ability to create value for shareholders is expressed bycomparing its return on invested capital (ROIC) with its weighted average cost ofcapital (WACC). The gap or difference between ROIC and WACC is called the firm'seconomic profit spread. Kimberly-Clark's 3-year historical return on invested capital(without goodwill) is 33.2%, which is above the estimate of its cost of capital of 8.8%.As such, we assign the firm a ValueCreation™ rating of EXCELLENT. In the chart tothe right, we show the probable path of ROIC in the years ahead based on the estimatedvolatility of key drivers behind the measure. The solid grey line reflects the most likelyoutcome, in our opinion, and represents the scenario that results in our fair valueestimate.

Kimberly-Clark KMB FAIRLY VALUED Estimated Fair Value Fair Value Range Investment Style Sector Industry

48.3%

39.0%

29.7%27.8%

42.1%

29.8%

WACC, 8.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

84.0%

15.9%Equity

Debt

Preferred

Capital Structure



Attractive

Growth Analysis

Revenue Growth MODEST Projected Revenue (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year

Revenue3-year Historical

CAGR5-year Projected

CAGRKimberly-Clark USD 19,140 1.6% 3.4%

Coca-Cola USD 33,014 -2.3% 6.7%

Philip Morris USD 28,694 -0.1% 5.3%

Procter & Gamble USD 70,950 2.9% 4.8%

Wal-Mart USD 559,151 3.8% 2.0%

Peer Median 1.4% 5.0%

Industry Median 2.4% 4.4%

In the chart above, we show our baseline forecast for revenue as well as potential upside and downside cases.

EBITDA Growth Projected EBITDA (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year

EBITDA3-year Historical

CAGR5-year Projected

CAGRKimberly-Clark USD 3,986 -0.5% 5.2%

Coca-Cola USD 11,386 9.1% 9.7%

Philip Morris USD 12,649 0.7% 7.2%


Wal-Mart USD 33,700 2.9% 8.0%



In the chart above, we show our baseline forecast for EBITDA as well as potential upside and downside cases.

Net Income Growth Projected Net Income (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year Net Income

3-year Historical CAGR

5-year Projected CAGR

Kimberly-Clark USD 2,352 1.1% 5.7%

Coca-Cola USD 7,747 83.8% 8.6%



Wal-Mart USD 13,510 11.1% 14.8%



In the chart above, we show our baseline forecast for net income as well as potential upside and downside cases.

Kimberly-Clark's EBITDA expansion has trailed both that of its peer group and itsindustry group during the past three years. We expect the firm's pace of EBITDAgrowth to fall below that of both its peer group and industry group during the next fiveyears. Coca-Cola sports the highest expected EBITDA growth rate among peers.

Kimberly-Clark's net income expansion has trailed both that of its peer group and itsindustry group during the past three years. We expect the firm's pace of net incomegrowth to fall below that of both its peer group and industry group during the next fiveyears. Wal-Mart sports the highest net income growth rate among peers.



Kimberly-Clark's revenue expansion has been greater than the median of its peer groupbut has trailed that of its industry group during the past three years. We expect thefirm's pace of revenue growth to fall below the median of both its peer group andindustry group during the next five years. Our growth assessment of each firm is basedon the firm's 5-year forward revenue CAGR. Kimberly-Clark's future pace of revenuegrowth is MODEST, in our opinion.


18,486 18,450 19,140

23,189

22,62222,055

0

5,000

10,000

15,000

20,000

25,000

3,112

3,6983,986

5,814

5,126

4,438

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1,410

2,1572,352

3,818

3,102

2,387

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500



Attractive

Cash Flow and Financial Leverage AnalysisCash Flow Generation STRONG Financial Leverage MEDIUM

The bars above show the firms operating cash flow, capital expenditures, and free cash flow, respectively. The bars above show the firm's annual debt-to-EBITDA. The red line shows the firm's normalized measure.

Cash Flow from Operations Projected Operating Cash Flow (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year CFO


5-year Projected CAGR


Coca-Cola USD 9,844 12.1% 8.6%



Wal-Mart USD 36,074 8.4% 1.8%



In the chart above, we show our baseline forecast for CFO as well as potential upside and downside cases.

Free Cash Flow (CFO-capital expenditures) Projected Free Cash Flow (in millions of USD) Source: Company Filings, Valuentum Projections

Last Fiscal Year FCF


5-year Projected CAGR Source: Company Filings, Valuentum Projections


Coca-Cola USD 8,667 17.7% 8.0%



Wal-Mart USD 25,810 12.2% -2.9%



In the chart above, we show our baseline forecast for free cash flow as well as potential upside and downside cases.

Kimberly-Clark's cash flow from operations expansion has trailed that of its peer groupbut has been greater than that of its industry group during the past three years. Weexpect the firm's pace of cash flow from operations growth to fall below that of both itspeer group and industry group during the next five years. Coca-Cola sports the highestexpected cash flow from operations growth rate among peers.

Kimberly-Clark's free cash flow expansion has trailed both that of its peer group and itsindustry group during the past three years. We expect the firm's pace of free cash flowgrowth to fall below that of both its peer group and industry group during the next fiveyears. Coca-Cola sports the highest expected free cash flow growth rate among peers.



Firms that generate a free cash flow margin (free cash flow divided by total revenue)above 5% are usually considered cash cows. Kimberly-Clark's free cash flow marginhas averaged about 10.9% during the past 3 years. As such, we think the firm's cashflow generation is relatively STRONG. The free cash flow measure shown above isderived by taking cash flow from operations less capital expenditures and differs fromenterprise free cash flow (FCFF), which we use in deriving our fair value estimate forthe company. For more information on the differences between these two measures,please visit our website at Valuentum.com. At Kimberly-Clark, cash flow fromoperations increased about 26% from levels registered two years ago, while capitalexpenditures expanded about 39% over the same time period.

Firms that exhibit high leverage tend to be more risky than firms with relatively lowdebt loads, all else equal. We measure financial leverage by taking a firm's currenttotal debt load and dividing it by the firm's trailing average 3-year annual EBITDA.Firms that are over 3 for this metric, we rate as having high leverage. Companies thathave less than 1.5 turns of leverage (or a measure below 1.5), we rate as having lowleverage. Kimberly-Clark's normalized debt-to-EBITDA measure of about 2.32 putsit in the MEDIUM camp.


2,9702,736

3,729

8771,209 1,217

2,093

1,527

2,512

Dec-18 Dec-19 Dec-20

Cash from Operations Capital Expenditures Free Cash Flow Kimberly-Clark -normalized

leverage, 2.32

0

0.5

1

1.5

2

2.5

3

3.5

12/31/2018 12/31/2019 12/31/2020

Kimberly-Clark- annual leverage Kimberly-Clark - normalized leverageMedium Threshold HighThreshold

2,9702,736

3,729

5,327

4,646

3,965

0

1,000

2,000

3,000

4,000

5,000

6,000

2,093

1,527

2,512

3,889

3,234

2,580

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500



Attractive

Valuation Analysis

Valuation Assumptions Valuation BreakdownIn Millions of USD (except for per share items)

Revenue CAGR %Avg. EBIT Margin %Avg. Cash Tax Rate %Earnings Before Interest CAGR %Earnings Per Share CAGR %Free Cash Flow to the Firm CAGR %Earnings before interest = Net operating profits less adjusted taxes

Phase II --> III FCFF CAGR % 3.3% (II) 3% (III)Cost of Equity %After-tax Cost of Debt %Discount Rate (WACC) %Synthetic credit spread = 2%

Phase I Present ValuePhase II Present ValuePhase III Present ValueTotal Firm Value

Net Balance Sheet Impact

Total Equity ValueDiluted Shares OutstandingFair Value per Share

DCF Valuation Summary Enterprise Free Cash FlowFiscal Year End: 12/31/2018 12/31/2019 12/31/2020

2,001 1,807 3,045882 917 796877 1,209 1,217

-547 -326 -487 - Acquisitions 0 4 1,083

2,553 1,837 2,028In Millions of USD

Source: Company Filings, Valuentum Projections

Company NameValuentum Buying

Index™Forward Price-to-

Earnings

Price/Earnings-to-Growth (PEG), 5-

yearEV/Est. Normal

EBITDA

5-year Forward Earnings per Share CAGR

3-year Hist Avg ROIC, without

goodwillDividend Yield

%

Stock Price / Fair Value Estimate

Kimberly-Clark 3 17.3 2.8 11.1 6.8% 33.2% 3.5% 100.5%

Coca-Cola 4 24.8 3.1 16.1 9.7% 41.8% 3.1% 133.0%

Philip Morris 5 15.9 2.0 10.7 9.4% 90.6% 4.9% 98.4%

Procter & Gamble 4 23.9 2.9 15.2 9.6% 32.5% 2.5% 130.8%

Wal-Mart 4 25.8 1.9 10.7 16.0% 26.3% 1.6% 124.1%

Peer Median 4.0 24.3 2.4 13.0 9.7% 37.2% 2.8% 127.4%

Industry Median 4.0 23.3 2.5 11.3 9.6% 24.0% 2.3% 104.1%

View back of report for a full list of industry constituents covered by Valuentum. VBI: Valuentum's ranking for the attractiveness of this investment at the date of the report.


19.0 13.0

19.7 14.9

17.6 12.8

21.5 18.0

13.6 12.1

20.4 16.9

Company Metrics versus Peer and Industry Medians

P/E on Est. Normal Diluted EPS Forward EV/EBITDA

15.2 12.2

In addition to the firm's cap structure, the net balance sheet impact considers the funded status of the firm's pension (-1058). In Millions of USD

---------- Actual ----------

We think Kimberly-Clark is worth $128 per share with a fair value range of $102.00- $154.00. The margin of safety around our fair value estimate is driven by the firm'sLOW ValueRisk™ rating, which is derived from an evaluation of the historicalvolatility of key valuation drivers and a future assessment of them. Our near-termoperating forecasts, including revenue and earnings, do not differ much from consensusestimates or management guidance. Our model reflects a compound annual revenuegrowth rate of 3.4% during the next five years, a pace that is higher than the firm's 3-year historical compound annual growth rate of 1.6%. Our model reflects a 5-yearprojected average operating margin of 18.1%, which is above Kimberly-Clark's trailing3-year average. Beyond year 5, we assume free cash flow will grow at an annual rate of3.3% for the next 15 years and 3% in perpetuity. For Kimberly-Clark, we use a 8.8%weighted average cost of capital to discount future free cash flows.

Earnings before Interest+ Depreciation - Capital Expenditures - Change in Working Capital

Enterprise Free Cash Flow (FCFF)

Our future forecasts for key valuation drivers result in a future free enterprise cashflow stream. Above, we show how we calculate enterprise free cash flow and thehistorical performance of the metric for Kimberly-Clark. Over the next five years, weexpect the firm's enterprise free cash flow to expand at about a 11% compoundannual growth rate. During years 6 through 20, we expect the measure to grow at a3.3% rate. Beyond year 20 (in perpetuity), we grow the firm's free cash flow atinflation (3%).

-9,147

43,941342.5

$128.00

22,89018,27253,088

8.8%Results11,926

4.9%6.8%

10.8%Long-term Projections

9.5%5.1%


5-year Projections In the chart below, we show the build up to our estimate of total enterprise value forKimberly-Clark and the break down to the firm's total equity value, which weestimate to be about 43.94USD billion. The present value of the enterprise free cashflows generated during each phase of our model and the net balance sheet impact,which considers the firm's pension, is displayed. We divide total equity value bydiluted shares outstanding to arrive at our $128 per share fair value estimate.

3.4%18.1%20.0%


11,926

22,890

18,2729,147

43,941

0

10,000

20,000

30,000

40,000

50,000

60,000

Yr 1-5 Yr 6-20 Perpetuity Net Balance SheetImpact

Equity Value



Attractive

Margin of Safety Analysis

Range of Potential Outcomes ValueRisk™ LOW

Revenue Volatility 2.0%Gross Margin Volatility 8.0%Earnings (EBI) Volatility 19.0%Cash Flow (FCFF) Volatility 19.0%Fair Value Range 20.0%The Fair Value Range sets the premium or discount on our estimate of the firm's fair value.

Upside and Downside ProbabilitiesProbability (fair value < $0) Less than 0.1%Probability (fair value > 2x current share price) 0.00%

Future Path of Fair Value

The graph above shows the expected future fair value of the firm's shares relative to its current stock price.

Our discounted cash flow process values each firm on the basis of the present value ofall future free cash flows. Although we estimate the firm's fair value at about $128 pershare, every company has a range of probable fair values that's created by theuncertainty of key valuation drivers (like future revenue or earnings, for example). After all, if the future were known with certainty, we wouldn't see much volatility in themarkets as stocks would trade precisely at their known fair values. Our ValueRisk™rating sets the margin of safety or the fair value range we assign to each stock. In thegraph above, we show this probable range of fair values for Kimberly-Clark. We thinkthe firm is attractive below $102 per share (the green line), but quite expensive above$154 per share (the red line). The prices that fall along the yellow line, which includesour fair value estimate, represent a reasonable valuation for the firm, in our opinion.

We strive to answer a few questions that investors often ask: 1) What are the chancesof a total loss of investment in this company? and 2) What is the chance that thecompany is really worth twice what I paid for it? The probability (fair value < 0)strives to answer the first question. It indicates the chance that the firm mayencounter insolvency based on the characteristics of its cash flow stream, capitalstructure, and risk profile. The probability (fair value > 2x current share price) strivesto answer the second question. It is our best estimate of whether investors areparticipating in a half-off sale by buying the company's shares at current prices.

We estimate Kimberly-Clark's fair value at this point in time to be about $128 pershare. As time passes, however, companies generate cash flow and pay out cash toshareholders in the form of dividends. The chart to the right compares the firm's currentshare price with the path of Kimberly-Clark's expected equity value per share over thenext three years, assuming our long-term projections prove accurate. The range betweenthe resulting downside fair value and upside fair value in Year 3 represents our bestestimate of the value of the firm's shares three years hence. This range of potentialoutcomes is also subject to change over time, should our views on the firm's future cashflow potential change. The expected fair value of $152 per share in Year 3 representsour existing fair value per share of $128 increased at an annual rate of the firm's cost ofequity less its dividend yield. The upside and downside ranges are derived in the sameway, but from the upper and lower bounds of our fair value estimate range.



Kimberly-Clark receives a ValueRisk™ rating of LOW based of the historicalvolatility of key drivers of economic value creation. The fair value range sets themargin of safety around our fair value estimate of the firm's shares.


$102

$128

$154

0 50 100 150 200 250

$183

$152Current Share Price, $129

$121

$0

$20

$40

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$120

$140

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Current Share Price Yr 1 Fair Value Yr 2 Fair Value Yr 3 Fair Value



Attractive

Technical Analysis

Technical Evaluation BEARISH Money Flow Index (MFI) NEUTRAL

30-week Price and Volume Chart (weekly)Relative Price Strength WEAK

5-week Company Performance -2.7%5-week Market Benchmark Performance 3.4%5-week Relative Performance vs. Market Benchmark -6.1%13-week Company Performance -5.9%13-week Market Benchmark Performance 7.2%13-week Relative Performance vs. Market Benchmark -13.1%30-week Company Performance -9.0%30-week Market Benchmark Performance 19.4%30-week Relative Performance vs. Market Benchmark -28.4%

Upside/Downside Volume BEARISH Timeliness Matrix™ Equity Valuation

Relative Strength

Firms that are undervalued and currently showing near-term pricing strength score near the top right of the matrix.


Weak 1Companies that are undervalued and showing near-term relative price strength couldrepresent timely buys, as the stock may be attractive to both value and momentuminvestors. A cross section of the firm's equity valuation and its relative share pricestrength is shown in the matrix above. We tend to prefer undervalued stocks that have strong pricing momentum, also called Valuentum stocks.

The level and trend of the Upside/Downside (U/D) volume ratio reveals whetherinstitutional participation has been bullish or bearish as of late. Kimberly-Clark's U/Dvolume ratio of 0.4 is not only less than 1 but also is lower than its trailing average,indicating BEARISH institutional interest during the past several weeks.

Strong

Neutral

The firm's near-term moving average (5-week, grey line) and medium-term movingaverage (13-week, red line) are shown in the chart above. Typically, when a shorter-term moving average crosses a medium- or longer-term moving average from below, itrepresents a bullish signal. If the short-term moving average crosses from above, tradersoften view this as bearish. Kimberly-Clark's 5-week moving average is below its 13-week measure, indicating a BEARISH trend. This activity further confirms thecompany's 30-week downtrend.

The Money Flow Index (MFI) is an oscillator that uses price and volume to measurebuying and selling pressure. Chartists often look for overbought (above 80) andoversold (below 20) levels to warn of unsustainable near-term price extremes.Kimberly-Clark's MFI of 27 (green line) is neutral, suggesting the firm's stock isneither overbought nor oversold at this time. However, a score below 50 tends tofavor bears. The MFI can also be used to gauge the strength or weakness of a firm'sprice trend. In Kimberly-Clark's case, its stock price and money flow neither reveals abullish nor bearish divergence, further supporting our neutral view on its money flowaction.

A firm's relative price strength can be assessed over any number of time horizons. Weshow the firm's performance over the past 5 weeks, 13 weeks, and 30 weeks below.In arriving at our relative strength rating for each company, we assess the past 13weeks, which includes the market's reaction to the firm's most recently reportedquarter, where applicable, and other more recent economic events. During the past 13weeks, Kimberly-Clark's shares returned -5.9%, while the market benchmarkreturned 7.2%. We think Kimberly-Clark's 13-week relative price performance isWEAK.

In the chart above, we pinpoint the heaviest accumulation or distribution week of thefirm, determined by the week with the highest trading volume during the past 30 weeks.A heavy accumulation (buying) or distribution (selling) week often determines thefuture near-term direction of the firm's share price, as money managers continue tomove in or out of the stock in the days and weeks ahead driving the stock up or down,respectively. For Kimberly-Clark, the week with the highest trading volume out of thelast 30 weeks was a week of heavy selling, or distribution (red bar). Such marketactivity could indicate a reversal of an uptrend or further confirmation of a downtrend.

Overvalued Fairly Valued Undervalued

Estimated Fair Value Fair Value Range Investment Style Sector Industry $128.00 $102.00 - $154.00 LARGE-CAP CORE Consumer Staples Recession Resistant

Kimberly-Clark KMB FAIRLY VALUED

109114119124129134139144149

010,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,000

5-week Moving Average

13-week Moving Average

Stock Price

117

122

127

132

137

142

147Overbought Line

Oversold Line

54

27

0102030405060708090

0.50.4

Average, 0.6

0.00.10.20.30.40.50.60.70.80.91.0

- 10-week Moving Average



Attractive

Pro Forma Income Statement -------------------- Historical --------------------

In Millions of USD (except for per share items)Dec-18 Dec-20

Total Revenue 18,486 19,140

Cost of Goods Sold 12,889 12,318

Selling, General and Administrative Expenses 3,367 3,632

Other Operating Expenses 0 0

Operating Income 2,230 3,190

Unusual items 0 0

Operating Income, including unusual items 2,230 3,190

Interest Expense (263) (252)

Other Non-operating Income (51) 134

Pre-tax Income 1,916 3,072

Income Taxes 471 676

Income after tax 1,445 2,396

Minority Interest and Equity Income (35) (44)

Net Income, excluding extra items 1,410 2,352

Income Available to Common, excluding extra items 1,410 2,352

Diluted Earnings per Share, excluding extra items 4.03 6.87

Diluted Weighted Shares Outstanding 349.6 342.5

Source: Company Filings, Xignite, Valuentum Projections

Note: Pro forma data in discounted cash-flow valuation may reflect significant adjustments from GAAP accounting data, including cash (not effective) tax rates and other analytical adjustments on a backward-looking and forward-looking basis. No individual data, by itself, found in this report should be used to make any investment decision.

345.6 339.1 335.7


6.24 7.45 8.01

2,157 2,527 2,689

2,157 2,527 2,689

(40) (44) (44)

2,197 2,571 2,733

576 643 683

2,773 3,214 3,416

253 0 0

(261) (252) (252)

0 0 0

2,781 3,466 3,668

2,781 3,466 3,668

0 0 0

12,415 12,548 12,849

3,254 3,700 3,789

18,450 19,714 20,306



---------- Projected ----------




Attractive

Pro Forma Balance Sheet -------------------- Historical --------------------


AssetsTotal Cash (including marketable securities) 539 303Inventory 1,813 1,903Accounts Receivable 2,164 2,235Other Current Assets 525 733Total Current Assets 5,041 5,174

Gross Fixed Assets 17,714 18,333(Accumulated Depreciation) (10,555) (10,291)Net Property, Plant, and Equipment 7,159 8,042

Goodwill, Net 1,474 1,895Intangibles, Net 0 832Other Long-term Assets 844 1,580Total Assets 14,518 17,523

LiabilitiesAccounts Payable 3,190 3,695Other Current Liabilities 2,138 2,262Current Portion of Long-term Debt 1,208 486Total Current Liabilities 6,536 6,443

Long-term Debt 6,247 7,878Other Long-term Liabilities 1,958 2,548Total Liabilities 14,741 16,869

Preferred Stock 64 28

Shareholders' EquityCommon Stock and Additional Paid in Capital 1,021 1,130Retained Earnings 5,947 7,567Other Equity (7,255) (8,071)Total Shareholders' Equity (223) 654

Total Liabilities and Shareholders' Equity 14,518 17,523




15,283 18,671 20,008

(7,748) (8,012) (7,933)(4) 1,710 2,945

1,029 1,130 1,1306,686 8,592 9,748

29 0 0

15,287 16,960 17,062

6,213 7,878 7,8782,155 2,548 2,548

6,919 6,534 6,636

1,978 2,319 2,3721,534 486 486

3,407 3,730 3,778

15,283 18,671 20,008

0 832 8321,309 1,580 1,580

7,450 8,476 8,947

1,467 1,895 1,895

17,839 19,587 20,903(10,389) (11,111) (11,955)

562 733 7335,057 5,888 6,753

1,790 1,930 1,9692,263 2,310 2,388

442 915 1,664

---------- Projected ----------


Estimated Fair Value Fair Value Range Investment Style Sector Industry $128.00 $102.00 - $154.00 LARGE-CAP CORE Consumer Staples Recession Resistant

Kimberly-Clark KMB FAIRLY VALUED



Attractive

Pro Forma Cash Flow Statement -------------------- Historical --------------------


Cash from OperationsNet Income 1,445 2,396Depreciation and Amortization 882 796Deferred Income Taxes 2 0Operating Gains Or Losses 252 537Changes in Working Capital 389 0

Cash Flow from Operations 2,970 3,729

Cash from InvestingPurchase of Property, Plant, Equipment (877) (1,217)Other Investing Cash Flows (25) (1,088)Cash Flow from Investing (902) (2,305)

Cash from FinancingIssuance (Retirement) of Stock (738) (483)Issuance (Retirement) of Debt 66 430Dividends Paid (1,386) (1,451)Other Financing Cash Flows (57) (63)Cash Flow from Financing (2,115) (1,567)

Foreign Exchange (30) 4

Net Change in Cash (77) (139)




1 0 0

(97) 640 749

(1,792) (1,987) (2,013)

(1,408) (1,546) (1,577)(114) 0 0

(572) (441) (436)302 0 0

(1,042) (1,254) (1,316)

(1,209) (1,254) (1,316)167 0 0

2,736 3,880 4,079

(378) 500 5150 (11) (13)

917 820 8440 0 0

2,197 2,571 2,733



---------- Projected ----------




Attractive

Recession ResistantRecession Resistant FAIRLY VALUED

Company Name TickerMarket Cap (USD-

mil) DCF Valuation ValueCreation™ ValueRisk™ ValueTrend™ Technicals Relative Strength

Altria Group MO 86,090 FAIRLY VALUED EXCELLENT LOW POSITIVE BEARISH WEAK

Anheuser-Busch InBev BUD 152,755 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE BULLISH STRONG

Archer-Daniels-Midland ADM 34,152 FAIRLY VALUED GOOD MEDIUM NEGATIVE VERY BEARISH NEUTRAL

Campbell Soup CPB 13,672 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE BEARISH WEAK

Casey's General CASY 7,328 FAIRLY VALUED GOOD MEDIUM NEGATIVE BEARISH WEAK

Church & Dwight CHD 21,104 FAIRLY VALUED EXCELLENT LOW POSITIVE BEARISH WEAK

Clorox CLX 22,085 FAIRLY VALUED EXCELLENT LOW POSITIVE BEARISH WEAK

Coca-Cola KO 235,647 OVERVALUED EXCELLENT MEDIUM NEGATIVE BULLISH NEUTRAL

Colgate-Palmolive CL 69,620 OVERVALUED EXCELLENT LOW POSITIVE VERY BEARISH WEAK

Costco COST 169,073 FAIRLY VALUED EXCELLENT LOW POSITIVE BULLISH NEUTRAL

Fresh Del Monte FDP 1,544 FAIRLY VALUED POOR LOW NEGATIVE BULLISH STRONG

General Mills GIS 36,651 FAIRLY VALUED EXCELLENT LOW POSITIVE VERY BEARISH WEAK

Hormel Foods HRL 26,039 FAIRLY VALUED EXCELLENT LOW NEGATIVE VERY BEARISH WEAK

Kellogg K 21,939 FAIRLY VALUED EXCELLENT LOW POSITIVE VERY BEARISH WEAK

Keurig Dr Pepper KDP 41,686 FAIRLY VALUED EXCELLENT LOW NEGATIVE VERY BULLISH WEAK

Kimberly-Clark KMB 44,076 FAIRLY VALUED EXCELLENT LOW POSITIVE BEARISH WEAK

Kraft Heinz KHC 49,734 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE VERY BEARISH WEAK

Kroger KR 30,264 FAIRLY VALUED GOOD MEDIUM POSITIVE BULLISH WEAK

Lancaster Colony LANC 5,258 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE BULLISH NEUTRAL

McCormick MKC 23,178 FAIRLY VALUED EXCELLENT MEDIUM POSITIVE BEARISH WEAK

Molson Coors TAP 11,757 FAIRLY VALUED GOOD LOW POSITIVE VERY BEARISH NEUTRAL

Mondelez Intl MDLZ 89,544 FAIRLY VALUED GOOD LOW POSITIVE BULLISH NEUTRAL

PepsiCo PEP 197,761 FAIRLY VALUED EXCELLENT LOW POSITIVE BULLISH WEAK

Philip Morris PM 151,765 FAIRLY VALUED EXCELLENT LOW POSITIVE NEUTRAL STRONG

Procter & Gamble PG 360,588 OVERVALUED EXCELLENT LOW POSITIVE BULLISH NEUTRAL

Smucker SJM 14,854 FAIRLY VALUED EXCELLENT LOW NEGATIVE VERY BEARISH WEAK

Sysco SYY 38,402 FAIRLY VALUED EXCELLENT MEDIUM NEGATIVE BEARISH WEAK

Target TGT 108,514 FAIRLY VALUED EXCELLENT LOW POSITIVE BULLISH STRONG

Tyson Foods TSN 26,557 FAIRLY VALUED EXCELLENT MEDIUM POSITIVE BEARISH WEAK

Wal-Mart WMT 399,149 OVERVALUED EXCELLENT LOW POSITIVE BULLISH WEAK

LARGE-CAP VALUE NEUTRAL

MEGA-CAP CORE NEUTRAL


LARGE-CAP CORE NEUTRAL

LARGE-CAP VALUE UNATTRACTIVE


LARGE-CAP CORE ATTRACTIVE

LARGE-CAP VALUE ATTRACTIVE


LARGE-CAP CORE UNATTRACTIVE





MID-CAP CORE UNATTRACTIVE




SMALL-CAP CORE ATTRACTIVE






MID-CAP CORE ATTRACTIVE






The above bar chart reveals the price/fair value of the company, its peers, and the industry as a whole.Shaded blue denotes that the firm has earned the highest rating for that respective category.Investment Style Relative Valuation



We think the Recession Resistant industry is fairly valued at this time. The industry'smarket cap is trading between 80% and 120% of our estimate of its fair value based onour DCF process. Although we use a firm-specific ValueRisk™ measure to determinewhether a firm is undervalued or overvalued based on our DCF process, we consider anindustry to be undervalued if it is trading below 80% of our estimate of its fair valueand overvalued if it is trading at over 120% of our estimate of its fair value. We thinkthese fair value ranges are appropriate given the diversification benefits of holding abasket of stocks. Although there may be individual opportunities within the RecessionResistant industry, we don't find the industry as a whole attractive based solely onvaluation.


100.5%

127.4%

104.1%

0%

20%

40%

60%

80%

100%

120%

140%

Kimberly-Clark Peer Median Recession Resistant

Valuentum's Full Page Stock Report


BA

G

I

N

C

J

D

M

H

E

L

K

A DCF ValuationShows whether the firm is undervalued, fairly valued, or overvalued based on our DCF process and by how much.

B Valuentum Buying Index (VBI)Provides insight into the timeliness of an investment opportunity. We rank firms from 1 to 10 based on rigorous fiancial, valuation, and technical analysis. A 10 represents one of our top picks.

C Valuentum Value Rating (VVR) Indicates whether we think a firm is undervalued, fairly valued, or overvalued on the basis of our DCF process.

D Investment ConsiderationsEvaluates firms on 12 different measures, from the firm's growth and cash flow generation to the stock's money flow index and upside/downside volume. We reveal technical support and resistance levels.

E 30-week Price and Volume ActionDisplays the last accumulation or distribution week of the stock and historical price and volume action.

G Company VitalsShows sector,industry and other relevant company information.

H Business QualitySummary of the firm's ability to create value for shareholders compared wth the underlying risk of its operations.

I Normalized EPS and EBITDAEstimation of the firm's normalized earnings measures and the corresponding valuation mutliples.

J Investment HighlightsOur opinion of the company, including analysis of its financial and technical strengths and weaknesses.

K Relative ValuationComparison of the firm's PE, PEG, and Price/FV ratios versus peers.

L Returns Summary3-year averages of the firm's key return measures, including return on invested capital, with and without goodwill.

M Leverage, Coverage, and LiquidityA snapshot of the company's financial health.

N Financial SummaryA summary of the proforma financial statements found in the extended report.

VBI Score Action10 Top Pick9 We'd Consider Buying

6 to 8 Constructive (add/trim)3 to 6 Less Exciting (add/trim)1 to 2 We'd Consider Selling

UNDERVALUED

FAIRLY VALUED

OVERVALUED

• Revenue Volatility • Margin Volatility • Earnings Volatility • Cash Flow Volatility

About Valuentum

@Valuentum, we strive to stand out from the crowd. Mostinvestment research publishers fall into a few camps,whether it be value, growth, income, momentum, chartistor some variant of the aforementioned. We think each inits own right holds merit, but we think the combination ofthese approaches can be even more powerful. After all,stock price movements aren’t just driven by investors ofthe value or growth variety, but by all market participants.Therefore, we look at stocks from a variety of investmentperspectives in order to better understand and identifyideas. We want to provide relevant information.

The core of our process is grounded in rigorous discountedcash flow analysis and incorporates the concept of amargin of safety. We offer a fair value estimate for eachcompany and provide a relative valuation assessment inthe context of a company’s industry and closest peers. Across section of our ValueCreation™ and ValueRisk™ratings provides a financial assessment of a company’sbusiness quality, while our ValueTrend™ rating offersinsight into the trajectory of a firm’s economic profitcreation. The Economic Castle rating measures themagnitude of future economic value generation, and theDividend Cushion ratio assesses the financial capacity of acompany to keep raising its dividend.

Our analysis doesn’t stop there. We also offer a technicalevaluation of the stock as well as other momentumindicators. We not only want to reveal to readers whichfirms may be undervalued, in our view, but we also wantto provide readers with information to help them assessentry and exit points. Most research publishers focus onarriving at a target price or fair value estimate, but mayfall short of providing a technical assessment to bolsterbuy and sell disciplines. We strive to go the distance andprovide readers with answers--not half the story.

An explanation of our approach would not be complete ifwe didn’t describe our ideal stock idea. We’re lookingfor companies that are undervalued--both on a DCF basisand versus peers--have strong growth potential, have asolid track record of creating economic profits forshareholders with reasonable risk, are strong cash flowgenerators, have manageable financial leverage, and arecurrently showing bullish technical and momentumindicators. For dividend growth ideas, we look forcompanies that have both the capacity and willingness tokeep raising the dividend.

Can such stock ideas exist? Subscribe to Valuentum toreceive our best investment ideas and analysis onhundreds of stocks, dividends, ETFs and more.

Historical firm-specific financial data generates our ValueCreation™, ValueRisk™, and ValueTrend™ ratings. The data provides the basis for our financial forecasts. Full annual forecasts of income statement, balance sheet, and cash flow statement items. Firm-specific cost of equity, cost of debt, weighted average cost of capital, and long-term growth and profitability measures estimated.

A complete three-stage free cash flow to the firm valuation model generates an estimate of the firm's equity value per share based on estimated future free cash flows.The volatility of key valuation drivers are estimated and a margin of safety is determined.

The firm's stock price is compared to the suggested margin of safety. If a firm's stock price falls below the lower bound of our estimated fair value range, it receives Valuentum's highest Value Rating.


Financial Forecasts

Financial Statement Analysis

Discounted Cash Flow Valuation

ModelValueRisk™

Rating

Valuentum Value Rating (VVR)

VBI Score Action10 Top Pick9 We'd Consider Buying

6 to 8 Constructive (add/trim)3 to 6 Less Exciting (add/trim)1 to 2 We'd Consider Selling

Methodology for Picking Stocks - Valuentum Buying Index™ (VBI)

@ Valuentum, we like to look at companies from anumber of different perspectives. The Valuentum BuyingIndex (VBI) combines rigorous financial and valuationanalysis with an evaluation of a stock's technicals to derivea rating between 1 and 10 for each company. The VBIplaces considerable emphasis on a company's discountedcash-flow (DCF) valuation, its relative valuation versuspeers (both forward PE and PEG ratios), and its technicalsin order to help readers assess entry and exit points on themost interesting ideas.

Let's follow the red line on the flow chart below to seehow a company can score a 10, the best mark on the index(a "Top Pick"). First, the company would need to be'undervalued' on a DCF basis and 'attractive' on a relativevalue basis. The stock would also have to be exhibiting

'bullish' technicals. The firm would need aValueCreation™ rating of 'good' or 'excellent', exhibit'high' or 'aggressive' growth prospects, and generate atleast a 'medium' or 'neutral' assessment for cash flowgeneration, financial leverage, and relative price strength.

This is a tall order for any company. Stocks that don'tmake the cut for a 10 are ranked accordingly, with theleast attractive stocks, in our opinion, garnering a ratingof 1 ("We'd sell"). Most of our coverage universeregisters ratings between 3 and 7, but at any given timethere could be large number of companies garneringeither very high or very low scores, especially at marketlows or tops, respectively.

The Best Ideas Newsletter portfolio puts the VBI intopractice.

The information contained in this report is not represented or warranted to be accurate, correct, complete, or timely. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

DCF FairlyValued

DCF Undervalued

Relative ValueUnattractive/Neutral

Relative Value Attractive

Relative ValueUnattractive/Neutral


Technicals Bearish: 1

Technicals Neutral: 2

TechnicalsBullish: 4

Technicals Bullish: 7

TechnicalsBearish: 6

Technicals >= BullishValueCreation(TM) >= GoodGrowth >= HighCash Flow Generation >= MediumFinancial Leverage <= MediumRelative Strength >= Neutral

Final Score: 10



TechnicalsBearish: 3

Relative Value Unattractive/Neutral











Initial Index Score

DCF Overvalued

ValueRisk™. This is a proprietary Valuentum measure. ValueRisk™ indicates thehistorical volatility of key valuation drivers, including revenue, gross margin, earningsbefore interest, and enterprise free cash flow. The standard deviation of each measure iscalculated and scaled against last year's measure to arrive at a percentage deviation foreach item. These percentage deviations are weighted equally to arrive at thecorresponding fair value range for each stock, measured in percentage terms. The firm'sperformance is measured along the scale of LOW, MEDIUM, HIGH, and VERY HIGH.The ValueRisk™ rating for each firm also determines the fundamental beta of eachfirm along the following scale: LOW (0.85), MEDIUM (1), HIGH (1.15), VERY HIGH(1.3).

Range of Potential Outcomes. The firm's margin of safety is shown in the graphicof a normal distribution. We consider a firm to be undervalued if its stock price fallsalong the green line and overvalued if the stock price falls along the red line. Weconsider the firm to be fairly valued if its stock price falls along the yellow line.

Return on Invested Capital. At Valuentum, we place considerable emphasis onreturn on invested capital (both with and without goodwill). The measure focuses onthe return (earnings) the company is generating on its operating assets and is superiorto return on equity and return on assets, which can be skewed by a firm's leverage orexcess cash balance, respectively. ValueTrend™. This is a proprietary Valuentum measure. ValueTrend™ indicates the

trajectory of the firm's return on invested capital (ROIC). Firms that earned an ROIClast year that was greater than the 3-year average of the measure earn a POSITIVErating. Firms that earned an ROIC last year that was less than the 3-year average of themeasure earn a NEGATIVE rating.

Technical Evaluation. We evaluate a firm's near-term and medium-term movingaverages and money flow index (MFI) to assign each firm a rating along thefollowing scale: VERY BULLISH, BULLISH, NEUTRAL, BEARISH, and VERYBEARISH.

Cash Flow Generation. Firms' cash flow generation capacity are measured along thescale of STRONG, MEDIUM, and WEAK. A firm with a 3-year historical free cashflow margin (free cash flow divided by sales) greater than 5% receives a STRONGrating, while firms earning less than 1% of sales as free cash flow receive a WEAKrating.

Stock Price Relative Strength. We assess the perfomance of the company's stockduring the past quarter, 13 weeks, relative to an ETF that mirrors the aggregateperformance of constituents of the stock market. Firms are measured along the scaleof STRONG, NEUTRAL, and WEAK. Companies that have outperformed themarket index by more than 2.5% during this 13-week period receive a STRONGrating, while firms that trailed the market index by more than 2.5% during this 13-week period receive a WEAK rating.

Financial Leverage. Based on the firm's normalized debt-to-EBITDA metric, we rank firms on the following scale: LOW, MEDIUM, and HIGH. Companies with a normalized debt-to-EBITDA ratio below 1.5 receive a LOW score, while those with a measure above 3 receive a HIGH score.

Money Flow Index (MFI). The MFI is a technical indicator that measures buyingand selling pressure based on both price and volume. Traders typically use thismeasure to identify potential reversals with overbought and oversold levels. We use a14-week measure to rank firms along the following scale: EXTREMELYOVERBOUGHT (>90), OVERBOUGHT (80-90), NEUTRAL (20-80), OVERSOLD(10-20), EXTREMELY OVERSOLD (0-10).

Upside/Downside Volume. Heavy volume on up days and lower volume on down days suggests that institutions are heavily participating in a stock's upward advance. We use the trailing 14-week average of upside and downside volume to calculate an informative ratio. We rank each firm's U/D volume ratio along the following scale: BULLISH, IMPROVING, DETERIORATING, and BEARISH.

GlossaryEstimated Fair Value. This measure is our opinion of the fair equity value per share ofthe company. If our forecasts prove accurate, which may not always be the case, wemay expect a firm's stock price to converge to this value within the next 3 years.

Investment Style. Valuentum uses its own proprietary stock-classification system.Nano-cap: Less than $50 million; Micro-cap: Between $50 million and $200 million;Small-cap: Between $200 million and $2 billion; Mid-cap: Between $2 billion and$10 billion; Large-cap: Between $10 billion and $200 billion; Mega-cap: Over $200billion. Blend: Firm's that we think are undervalued and exhibit high growthprospects (growth in excess of three times the rate of assumed inflation). Value:Firm's that we believe are undervalued, but do not exhibit high growth prospects.Growth: Firms that are not undervalued, in our opinion, but exhibit high growthprospects. Core: Firms that are neither undervalued nor exhibit high growthprospects.

Fair Value Range. The fair value range represents an upper bound and lower bound,between which we would consider the firm to be fairly valued. The range considers ourestimate of the firm's fair value and the margin of safety suggested by the volatility ofkey valuation drivers, including revenue, gross margin, earnings before interest, andenterprise free cash flow (the determinants behind our ValueRisk™ rating).

DCF Valuation. We opine on the firm's valuation based on our DCF process. Firmsthat are trading with an appropriate discount to our fair value estimate receive anUNDERVALUED rating. Firms that are trading within our fair value range receive aFAIRLY VALUED rating, while firms that are trading above the upper bound of ourfair value range receive an OVERVALUED rating.

Company Vitals. In this section, we list key financial information and the sector andindustry that Valuentum assigns to the stock. The P/E-Growth (5-yr), or PEG ratio,divides the current share price by last year's earnings (EPS) and then divides thatquotient by our estimate of the firm's 5-year EPS growth rate. The estimatednormalized diluted EPS and estimated normalized EBITDA represent the five-yearforward average of these measures used in our discounted cash flow model. The P/Eon estimated normalized EPS divides the current share price by estimated normalizeddiluted EPS. The EV/estimated normalized EBITDA considers the current enterprisevalue of the company and divides it by estimated normalized EBITDA. EV is definedas the firm's market capitalization plus total debt, minority interest, preferred stockless cash and cash equivalents.

Relative Value. We compare the firm's forward price-to earnings (PE) ratio and itsprice/earnings-to-growth (PEG) ratio to that of its peers. If both measures fall below thepeer median, the firm receives an ATTRACTIVE rating. If both are above the peermedian, the firm receives an UNATTRACTIVE rating. Any other combination resultsin a NEUTRAL rating.

ValueCreation™. This is a proprietary Valuentum measure. ValueCreation™indicates the firm's historical track record in creating economic value for shareholders,taking the average difference between ROIC (without goodwill) and the firm'sestimated WACC during the past three years. The firm's performance is measured alongthe scale of EXCELLENT, GOOD, POOR, and VERY POOR. Those firms withEXCELLENT ratings have a demonstrated track record of creating economic value,while those that register a VERY POOR mark have been destroying economic value.

Business Quality Matrix. We compare the firm's ValueCreation™ and ValueRisk™ratings. The box is an easy way for investors to quickly assess the business quality ofa company. Firms that generate economic profits with little operating variabilityscore near the top right of the matrix.

Timeliness Matrix. We compare the company's recent stock performance relative tothe market benchmark with our assessment of its valuation. Firms that areexperiencing near-term stock price outperformance and are undervalued by ourestimate may represent timely buys.

The information contained in this report is not represented or warranted to be accurate, correct, complete, or timely. This report is for informational purposes only and should not be considered a solicitation to buy or sell a security. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Assumptions, opinions, and estimates are based on our judgment as of the date of the report and are subject to change without notice. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this report. Redistribution is prohibited without written permission. To license Valuentum research, contact us at [email protected].

KMB Rating History Price Fair Value VBI18-Jun-21 $128.69 $128.00 315-Oct-20 $154.76 $120.00 416-Apr-20 $139.73 $113.00 726-Nov-19 $133.77 $110.00 38-Apr-19 $123.18 $102.00 73-Dec-18 $113.50 $102.00 620-Jul-18 $104.68 $102.00 616-Mar-18 $112.02 $105.00 310-Nov-17 $114.14 $107.00 34-Aug-17 $121.32 $107.00 317-Mar-17 $133.26 $112.00 528-Nov-16 $114.11 $112.00 47-Nov-16 $112.91 $112.00 417-Jun-16 $132.40 $112.00 7

Affiliate RelationshipCustomers of Valuentum acknowledge and agree that Valuentum’s affiliate, Pigeon Oak Capital Management, LLC (“Advisor”), may act as an investment advisor to other clients and receive fees for such services. The advice given and the actions taken with respect to such clients and Advisor’s own account may differ from opinions or the timing and nature of action taken with respect to Valuentum’s ratings or published research. Customers of Valuentum must further recognize that transactions in a specific security are not completed for Valuentum customers’ accounts because Valuentum does not have the authority to make trades or provide personalized advice for newsletter clients. The Advisor has discretion to make trades in its clients’ accounts without receiving prior authorization in each instance. Valuentum’s customers also acknowledge that in managing the Advisors’ clients’ assets, Advisor may purchase or sell securities in which Valuentum has an opposite opinion on, and Advisor, its members, officers, directors, or employees, directly or indirectly, have or may acquire a position or interest that contradicts that of Valuentum’s opinion. Due to the fiduciary relationship between Advisor and its clients, Valuentum’s customers will not receive alerts of trades done by Advisor, and trades done by Valuentum’s customers based on opinions of Valuentum might lag trades done by Advisor’s clients. Advisor or its affiliated persons may obtain material, nonpublic or other confidential information that, if disclosed, might affect an investor’s decision to buy, sell or hold a security. Under applicable law, Advisor or Valuentum and their affiliated persons cannot improperly disclose or use this information for their personal benefit or for the benefit of any person, including clients of Advisor or customers of Valuentum. If Advisor or any affiliated person obtains nonpublic or other confidential information about any issuer, Valuentum will have no obligation to disclose the information to customers of it, clients of Advisor or use it for their benefit.

The High Yield Dividend Newsletter portfolio, the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Any performance, including that in the Nelson Exclusive publication, is hypothetical and does not represent actual trading. Past performance is not a guarantee of future results.

Valuentum is an investment research publishing company.

Valuentum has not owned and does not own any shares of stocks mentioned on its website or in this report. President of Investment Research Brian Nelson does not own any shares of stocks mentioned on Valuentum's website or in this report. Majority share owner of Valuentum, Elizabeth Nelson, currently has exposure to HON in her retirement account.

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Kimberly-Clark KMB FAIRLY VALUED Buying Index™ 3 Value Rating

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