Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $39.74B
• Dividend Yield: 3.96%
• Average Volume (3M): 16.57M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.31
• Revenue Growth: -2.15%
• EPS Growth: 26.65%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Household & Personal Products
• EPS (TTM): 0.29
• Shares Outstanding: 1,919,070,000
• 10 Day Avg. Volume: 12,118,902
• 30 Day Avg. Volume: 16,570,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 15.78
• 1Y Price Target: $23.64
• Price Target Upside: 14.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 61 Neutral
• Price Target: $22.50 ▲(8.64% Upside)

Kenvue's overall stock score reflects a stable financial position with strong cash flow management but declining profitability and challenging market conditions. Technical indicators suggest a neutral to bearish outlook, and valuation metrics indicate potential overvaluation. The earnings call underscores strategic challenges and uncertainty, impacting the overall sentiment.

Positive Factors

Brand Portfolio

Kenvue’s diversified portfolio of leading consumer healthcare brands holds potential for stable and profitable growth.

Leadership and Strategy

The appointment of Mr. Kirk Perry as interim CEO indicates a commitment to conducting a comprehensive search for the company’s next permanent CEO, following the replacement of both the CEO and CFO.

Strategic Review

The review of strategic alternatives announced by KVUE could lead to portfolio simplification, which may enhance operating performance to accelerate profitable growth.

Negative Factors

Earnings and Financial Performance

Preliminary Q2 sales and earnings results were below expectations, with organic sales at -4.2% compared to the Street’s -1% prior.

Product Segment Weakness

Weakness in Q2 is expected to be driven by the skin health & beauty segment, where weak volumes are likely to persist due to soft sales in sun care and greater pricing investments.

Sales Performance

Sales were below plan, and guidance has been lowered to account for slower category growth rates and soft seasonal business.

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, Inc. generates revenue primarily through the sale of its health and wellness products across various segments, including over-the-counter medications, skincare, and personal care. The company's revenue streams are largely driven by its extensive portfolio of trusted brands, which are distributed through a wide network of retail partners, pharmacies, and online platforms. Kenvue benefits from strategic partnerships and collaborations that enhance its market reach and product offerings. Additionally, the company's focus on research and development enables it to introduce new and innovative products, thus expanding its revenue potential. Key factors contributing to Kenvue's earnings include strong brand recognition, a diverse product lineup, and a robust distribution network.

Kenvue, Inc. Financial Statement Overview

Summary

Kenvue, Inc. demonstrates a stable financial position with operational efficiency but declining profitability. The income statement shows stable gross profit margins but declining net profit margins. The balance sheet reflects moderate leverage and stable equity, while the cash flow statement is strong, indicating effective cash management.

Income Statement

Kenvue, Inc. shows a mixed performance in its income statement. The company has maintained a stable gross profit margin around 58%, indicating efficient cost management. However, the net profit margin has declined to 4.46% in the TTM, reflecting reduced profitability. Revenue growth has been negative recently, which is a concern. Despite these challenges, the EBIT and EBITDA margins have improved over the years, showcasing operational efficiency.

Balance Sheet

The balance sheet of Kenvue, Inc. reflects a moderate financial position. The debt-to-equity ratio has increased to 0.81 in the TTM, indicating higher leverage, but it remains manageable. Return on equity has decreased to 6.58%, suggesting reduced profitability for shareholders. The equity ratio is stable, showing a solid asset base funded by equity.

Cash Flow

Kenvue, Inc.'s cash flow statement reveals positive trends. The free cash flow growth rate is strong at 12.62% in the TTM, indicating efficient cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. The free cash flow to net income ratio is robust at 78.10%, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.14B	15.46B	15.44B	14.95B	15.05B	14.47B
Gross Profit	8.78B	8.96B	8.64B	8.29B	8.42B	7.85B
EBITDA	3.04B	2.47B	3.17B	3.28B	3.66B	3.73B
Net Income	1.42B	1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet
Total Assets	27.13B	25.60B	27.85B	27.32B	27.93B	29.18B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	1.38B	1.23B	740.00M	618.00M
Total Debt	8.74B	8.72B	8.43B	116.00M	129.00M	320.00M
Total Liabilities	16.40B	15.93B	16.64B	7.35B	7.53B	10.82B
Stockholders Equity	10.73B	9.67B	11.21B	19.97B	20.40B	18.36B
Cash Flow
Free Cash Flow	1.63B	1.33B	2.70B	2.15B	39.00M	3.17B
Operating Cash Flow	2.09B	1.77B	3.17B	2.52B	334.00M	3.40B
Investing Cash Flow	-445.00M	-425.00M	-488.00M	-390.00M	-171.00M	-83.00M
Financing Cash Flow	-1.61B	-1.56B	-2.53B	-1.58B	0.00	-3.46B

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.71 is below the 20-day moving average (MA) of 21.20, below the 50-day MA of 21.30, and below the 200-day MA of 21.93, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 17.43 is Positive, 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	78 Outperform	$367.85B	24.13	31.23%	2.63%	0.29%	7.85%
UL	73 Outperform	$154.13B	25.80	28.36%	3.14%	-0.30%	-14.60%
CHD	70 Outperform	$22.69B	43.94	12.07%	1.25%	1.13%	-34.78%
CL	63 Neutral	$67.95B	23.63	705.21%	2.43%	0.05%	3.55%
Sector *	63 Neutral	$20.44B	14.73	-2.94%	3.07%	2.04%	-6.12%
KVUE	61 Neutral	$39.74B	28.13	13.56%	3.96%	-2.15%	26.65%
KMB	60 Neutral	$42.85B	17.80	196.26%	3.85%	-6.89%	7.52%

Kenvue, Inc. Corporate Events

Kenvue Announces CEO Transition and Strategic Review

On July 14, 2025, Kenvue announced a significant leadership change with the departure of CEO Thibaut Mongon and the appointment of Kirk L. Perry as interim CEO. This transition is part of a broader strategy to unlock shareholder value and enhance company performance. The Board is conducting a comprehensive review of strategic alternatives to optimize Kenvue’s brand portfolio and improve operational execution. The strategic review is advised by Centerview Partners and McKinsey & Company, aiming to accelerate growth and value creation for shareholders.

Kenvue Announces Leadership Change in Asia Pacific

Kenvue Inc. announced a leadership transition in its Asia Pacific division, with Ellie Bing Xie stepping down as Group President on July 14, 2025, and Anindya Dasgupta taking over the role. Ms. Xie will remain with the company until August 8, 2025, to facilitate a smooth transition and will receive severance benefits as per the company’s plan. Mr. Dasgupta, with nearly 30 years of experience in the global consumer products industry, is expected to leverage his extensive expertise to drive growth in the Asia Pacific region, which generated approximately $3 billion in net sales in fiscal year 2024.

Kenvue Inc. Shareholders Approve Key Proposals at 2025 Meeting

Kenvue Inc. held its 2025 Annual Meeting of Shareholders on May 22, 2025, where shareholders voted on several key proposals. All 13 director nominees were elected to the Board of Directors, the compensation of the company’s named executive officers was approved on a non-binding advisory basis, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025.