Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $33.22B
• Dividend Yield: 4.85%
• Average Volume (3M): 38.30M
• Price to Earnings (P/E): 23.3
• 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): 0.28
• Shares Outstanding: 1,916,011,600
• 10 Day Avg. Volume: 52,560,077
• 30 Day Avg. Volume: 38,298,997
• PEG Ratio: -0.98
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 30.38
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 14.04
• 1Y Price Target: $18.40
• Price Target Upside: 6.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $18.50 ▲(7.56% Upside)

The score is driven primarily by solid underlying profitability and strong free-cash-flow growth, offset by declining net margin, a recent revenue dip, and higher leverage. Technicals are broadly neutral with the stock still below its 200-day average, while valuation is supported by a strong dividend but moderated by a mid-20s P/E. The pending merger adds upside potential but also execution/regulatory and litigation-related risk.

Positive Factors

Stable gross margins & operational efficiency

A stable ~58% gross margin indicates durable pricing power and effective cost management across OTC and personal care brands. Combined with healthy EBIT/EBITDA margins, this supports consistent operating cash generation and resilience to input cost swings, underpinning long-term margin sustainability.

Strong free cash flow generation

A 36.7% TTM increase in free cash flow demonstrates strong cash conversion from operations, enabling reinvestment in brands, R&D, dividends, and debt reduction. Persistent FCF is a durable fundamental that supports strategic flexibility and funds growth initiatives over multiple quarters.

Merger with Kimberly‑Clark could increase scale

Shareholder approval advances a transformational merger that can deliver scale, broader global distribution, and complementary product portfolios. If regulatory approvals and integration succeed, the combined entity could realize durable cost and commercial synergies, strengthening competitive position long term.

Negative Factors

Rising financial leverage

Leverage rising from near zero to 0.84 materially reduces balance sheet flexibility, increases interest expense sensitivity, and raises refinancing risk. Higher debt loads can restrict capital allocation choices, limit aggressive marketing or R&D investment, and pose multi‑quarter financial strain until delevered.

Declining net margin and weak revenue trend

A falling net margin and inconsistent/negative revenue growth point to structural pressure from pricing, promotions, or non‑operating costs. Persistent margin erosion reduces retained earnings and limits the firm's ability to sustainably fund brand investment, innovation, and shareholder returns.

Material litigation and merger execution risk

Significant litigation exposure and ongoing proxy lawsuits create enduring legal, cash‑flow and reputational risks. These matters can increase settlements or defense costs, strain insurance coverage, and complicate or delay merger completion, imposing lasting uncertainty on strategic execution and financial planning.

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

Financials are solid but mixed. Gross margin remains stable around 58% and EBIT/EBITDA margins suggest operational efficiency, while free cash flow grew 36.7% (TTM). Offsetting this, net margin has fallen (13.8% in 2021 to 9.5% TTM), revenue growth is inconsistent with a -0.89% TTM decline, and leverage has increased (debt-to-equity up to 0.84 TTM).

Income Statement

Kenvue, Inc. shows a stable gross profit margin of around 58% over the years, indicating consistent cost management. However, the net profit margin has decreased from 13.8% in 2021 to 9.5% in the TTM, reflecting potential challenges in controlling non-operating expenses or increased competition. Revenue growth has been inconsistent, with a recent decline of 0.89% in the TTM, which could be a concern for future profitability. Despite these challenges, the company maintains a healthy EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased to 0.84 in the TTM from a low of 0.01 in 2021, indicating a rise in leverage which could pose a risk if not managed properly. Return on equity has improved to 13.95% in the TTM, reflecting effective use of shareholder funds. The equity ratio remains strong, suggesting a solid capital structure, but the increasing debt levels need monitoring.

Cash Flow

Kenvue's free cash flow has grown by 36.7% in the TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is stable, indicating efficient conversion of income into cash. However, the free cash flow to net income ratio has slightly decreased, which could suggest increased capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.01B	15.46B	15.44B	14.95B	15.05B	14.47B
Gross Profit	8.72B	8.96B	8.64B	8.29B	8.42B	7.85B
EBITDA	2.94B	2.47B	3.17B	3.28B	3.66B	3.73B
Net Income	1.43B	1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet
Total Assets	27.25B	25.60B	27.85B	27.32B	27.93B	29.18B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.07B	1.38B	1.23B	740.00M	618.00M
Total Debt	9.11B	8.72B	8.43B	9.05B	129.00M	0.00
Total Liabilities	16.61B	15.93B	16.64B	7.35B	7.53B	10.82B
Stockholders Equity	10.63B	9.67B	11.21B	19.97B	20.40B	18.36B
Cash Flow
Free Cash Flow	1.64B	1.33B	2.70B	2.15B	39.00M	3.17B
Operating Cash Flow	2.14B	1.77B	3.17B	2.52B	334.00M	3.40B
Investing Cash Flow	-493.00M	-425.00M	-488.00M	-390.00M	-171.00M	-83.00M
Financing Cash Flow	-1.55B	-1.56B	-2.53B	-1.58B	0.00	-3.46B

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.20
• 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 17.2 is below the 20-day moving average (MA) of 17.22, above the 50-day MA of 17.07, and below the 200-day MA of 19.14, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.67 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	$342.42B	21.83	31.58%	2.92%	1.23%	17.97%
UL	73 Outperform	$144.44B	24.14	28.36%	3.74%	-0.30%	-14.60%
CHD	72 Outperform	$21.97B	28.80	18.59%	1.38%	1.45%	42.04%
KVUE	66 Neutral	$33.22B	23.31	13.47%	4.85%	-2.94%	34.54%
CL	63 Neutral	$68.52B	23.82	450.35%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	61 Neutral	$33.03B	16.41	147.22%	5.03%	-10.04%	-23.41%

Kenvue, Inc. Corporate Events

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.

Kenvue Merges with Kimberly-Clark in $48.7B Deal

On November 2, 2025, Kenvue Inc. entered into a merger agreement with Kimberly-Clark Corporation, which will see Kenvue become a wholly owned subsidiary of Kimberly-Clark. This strategic merger, valued at approximately $48.7 billion, aims to create a global health and wellness leader by combining complementary product portfolios and leveraging both companies’ strengths. The merger is expected to deliver significant synergies and value creation for shareholders, with the transaction anticipated to close in the second half of 2026. Additionally, Kirk L. Perry was appointed as Kenvue’s permanent CEO, effective immediately, following his interim role since July 2025.

The most recent analyst rating on (KVUE) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.