Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $34.98B
• Dividend Yield: 4.85%
• Average Volume (3M): 50.34M
• Price to Earnings (P/E): 22.4
• Beta (1Y): <0.01
• Revenue Growth: -2.94%
• EPS Growth: 34.54%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.27
• Shares Outstanding: 1,916,732,000
• 10 Day Avg. Volume: 35,005,292
• 30 Day Avg. Volume: 50,337,336
• PEG Ratio: 0.53
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 19.14
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 4.83
• Enterprise Value/Ebitda: 14.33
• 1Y Price Target: $19.00
• Price Target Upside: 4.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $15.53B

• Rating: 68 Neutral
• Price Target: $20.50 ▲(12.70% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score reflects solid underlying financial performance with some volatility and leverage risk, supported by constructive technical momentum. Offsetting factors include a not-cheap P/E (despite an attractive dividend yield) and corporate-event uncertainty from merger execution, litigation, and restructuring charges.

Positive Factors

Diversified consumer health portfolio

Kenvue’s broad portfolio across Self Care, Skin Health & Beauty and Essential Health supports recurring demand across channels and geographies. Diversification across categories and retail/e-commerce reduces single-category risk and underpins stable revenue streams over the medium term.

Strong gross margins

Consistently mid-to-high 50% gross margins indicate structural pricing power and efficient product economics in consumer health. Healthy operating margins provide room for marketing, R&D and SG&A while supporting durable profitability even if top-line growth moderates.

Positive free cash flow

Reliable free cash flow generation, with a 2025 improvement, supports investment, dividend funding and execution of strategic initiatives. While historically variable, multi-year positive FCF strengthens financial flexibility and funds restructuring or integration without immediate external financing.

Negative Factors

Elevated leverage

Higher debt-to-equity and a reduced equity cushion limit balance-sheet flexibility. Elevated leverage increases interest and refinancing risk, constrains capacity for large bolt-on investments or unexpected costs, and makes the company more sensitive to cyclical earnings pressure during integration.

Revenue and margin volatility

Choppy revenue and swinging net margins reduce predictability of earnings and cash generation. Structural variability complicates long-term planning, budgeting for brand investment, and achieving steady returns, increasing execution risk for margin improvement initiatives and M&A integration.

Transaction and restructuring execution risk

The simultaneous restructuring, meaningful one-time charges and pending Kimberly‑Clark combination create sustained execution risk. Costs, integration complexity, regulatory approvals and related litigation can strain management focus, delay synergies and pressure near-term margins and cash requirements.

Kenvue, Inc. Business Overview & Revenue Model

Company Description

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, and other products under the Tylenol, Nicorette, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair care, and sun and other care products under the Neutrogena, Aveeno, and OGX brand names. The Essential Health segment offers oral and baby, women's health, and wound care products under the Listerine, Johnson's, Band-Aid, and Stayfree brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey. Kenvue Inc. operates as a subsidiary of Johnson & Johnson.

How the Company Makes Money

Kenvue generates revenue primarily through the sale of its diverse portfolio of consumer health products. The company's revenue model is built around several key streams, including retail sales through pharmacies, supermarkets, and online platforms. Kenvue benefits from strong brand recognition, which allows it to command premium pricing on its products. Additionally, the company engages in strategic partnerships with retailers and distributors to expand its market reach and optimize its supply chain. Seasonal promotions and marketing campaigns also play a crucial role in driving sales, particularly in categories like cold and flu remedies. Overall, Kenvue's earnings are bolstered by its commitment to innovation, product quality, and effective branding strategies.

Kenvue, Inc. Financial Statement Overview

Summary

Fundamentals are stable-to-good: solid gross margins and generally positive free cash flow, but results have been choppy across years (revenue and net margin variability) and the balance sheet is more levered with a thinner equity cushion versus earlier periods.

Income Statement

Profitability is solid for the category, with gross margin consistently in the mid-to-high 50% range and EBIT/EBITDA margins generally healthy. However, performance has been choppy: revenue has been largely flat from 2022–2024 before a sharp rebound in 2025, while net margin has swung meaningfully (strong in 2021–2022, weaker in 2024, then improved in 2025). The 2020 loss also highlights historical volatility, even if results have since stabilized.

Balance Sheet

Leverage looks manageable but not light: debt-to-equity is around ~0.75–0.90 in the last three years, implying a more levered profile than 2022 and far above 2020–2021. Equity has also stepped down materially versus 2021–2022, reducing balance-sheet cushion. Returns on equity were decent in 2022–2024, but the most recent year shows an anomalous 0% figure in the provided data, limiting confidence in the latest profitability-to-equity read-through.

Cash Flow

Cash generation is generally supportive: free cash flow has been positive each year and improved in 2025 versus 2024, with free cash flow running at a healthy portion of net income in recent years. That said, cash flow has not been consistent—2021 showed very weak free cash flow relative to earnings, and 2024 saw a decline before the 2025 recovery. Overall cash conversion is good in the last two years, but the multi-year variability keeps the score below top-tier.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.12B	15.46B	15.44B	14.95B	15.05B
Gross Profit	8.79B	8.96B	8.64B	8.29B	8.42B
EBITDA	2.94B	2.47B	3.17B	3.28B	3.66B
Net Income	1.47B	1.03B	1.66B	2.06B	2.08B
Balance Sheet
Total Assets	27.08B	25.60B	27.85B	27.32B	27.93B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.07B	1.38B	1.23B	740.00M
Total Debt	8.52B	8.72B	8.43B	9.05B	129.00M
Total Liabilities	16.31B	15.93B	16.64B	7.35B	7.53B
Stockholders Equity	10.77B	9.67B	11.21B	19.97B	20.40B
Cash Flow
Free Cash Flow	1.72B	1.33B	2.70B	2.15B	39.00M
Operating Cash Flow	2.20B	1.77B	3.17B	2.52B	334.00M
Investing Cash Flow	-436.00M	-425.00M	-488.00M	-390.00M	-171.00M
Financing Cash Flow	-1.84B	-1.56B	-2.53B	-1.58B	0.00

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVUE, the sentiment is Negative. The current price of 18.19 is below the 20-day moving average (MA) of 18.51, above the 50-day MA of 17.62, and below the 200-day MA of 18.46, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KVUE.

Kenvue, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$357.87B	20.05	31.58%	2.92%	1.23%	17.97%
CHD	73 Outperform	$23.64B	27.62	17.62%	1.38%	1.45%	42.04%
UL	69 Neutral	$147.71B	20.76	32.63%	3.74%	-0.30%	-14.60%
KVUE	68 Neutral	$34.98B	22.42	14.39%	4.85%	-2.94%	34.54%
CL	65 Neutral	$74.28B	-429.64	1602.26%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	61 Neutral	$34.82B	16.63	147.22%	5.03%	-10.04%	-23.41%

Kenvue, Inc. Corporate Events

Kenvue Launches Workforce-Reducing Restructuring and Supply Chain Overhaul

On February 17, 2026, Kenvue’s board approved a restructuring initiative aimed at optimizing its operating model and transforming its supply chain, which will cut about 3.5% of its global workforce and generate roughly $250 million in pre-tax charges in fiscal 2026, largely tied to IT, project and employee-related costs. The move accompanies fourth-quarter 2025 results showing a 3.2% rise in net sales and margin improvements, even as full-year 2025 net sales fell 2.1% and adjusted EPS slipped, and comes as shareholders of both Kenvue and Kimberly-Clark have already approved Kimberly-Clark’s acquisition of Kenvue, expected to close in the second half of 2026, signaling a significant operational reset ahead of the combination.

The most recent analyst rating on (KVUE) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue Announces CFO Transition Amid Kimberly-Clark Transaction

On February 10, Kenvue Inc. said Chief Financial Officer Amit Banati plans to step down from his role effective May 12, 2026, to become chief executive officer at another company. In light of its pending transaction with Kimberly-Clark Corporation, Kenvue aims to appoint an interim principal financial officer before his departure and noted that Banati will work closely with leadership, finance and accounting teams over the next three months to ensure an orderly transition.

The planned CFO change comes as Kenvue navigates a significant corporate transaction, underscoring the importance of leadership continuity in its financial operations. Investors and other stakeholders are likely to focus on how quickly the company names a successor and maintains financial oversight during the transition period associated with the Kimberly-Clark deal.

The most recent analyst rating on (KVUE) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue shareholders overwhelmingly approve Kimberly-Clark merger plan

On January 29, 2026, Kenvue held a virtual special meeting at which approximately 78% of outstanding shares were represented, and about 99% of votes cast approved its previously announced merger agreement with Kimberly-Clark, clearing a key shareholder hurdle for the transaction. On the same day, Kimberly-Clark and Kenvue reported that roughly 96% of shares present at Kimberly-Clark’s own special meeting backed the issuance of Kimberly-Clark stock needed to complete the acquisition, marking a major milestone toward creating a larger global health and wellness player and signaling strong investor support for the deal, which now primarily hinges on regulatory approvals and customary closing conditions expected to be satisfied in the second half of 2026.

The most recent analyst rating on (KVUE) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue Supplements Proxy Disclosures Ahead of Merger Vote

On November 2, 2025, Kenvue Inc. agreed to be acquired by Kimberly-Clark Corporation through a two-step merger that would make Kenvue a wholly owned subsidiary of Kimberly-Clark, and by December 16, 2025, the SEC had declared effective a registration statement supporting joint proxy materials for special shareholder meetings scheduled for January 29, 2026 to vote on the transaction. Since early December 2025, multiple purported Kenvue and Kimberly-Clark stockholders have filed lawsuits in federal and state courts in Wisconsin, New Jersey, New York and Delaware, along with sending demand letters, alleging that the preliminary and joint proxy statements omitted material information and asserting securities law and fiduciary duty violations, with plaintiffs seeking to enjoin the votes or the mergers until additional disclosures are made and to recover fees and costs. To reduce the risk of delays to closing and limit litigation costs, Kenvue has voluntarily supplemented the joint proxy statement/prospectus with extensive additional detail on the board’s strategic review process, advisory relationships, financial analyses and long-term projections for Kenvue, Kimberly-Clark and the combined company, while maintaining that these added disclosures are not legally required and reiterating the Kenvue board’s unanimous recommendation that shareholders vote in favor of the merger and related proposals.

The most recent analyst rating on (KVUE) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.