Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $32.99B
• Dividend Yield: 4.76%
• Average Volume (3M): 48.36M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.04
• 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: 1,915,802,100
• 10 Day Avg. Volume: 43,302,694
• 30 Day Avg. Volume: 48,356,635
• 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: 1.20
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $19.42
• Price Target Upside: 11.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $19.00 ▲(9.51% Upside)

Kenvue, Inc. receives a solid score driven by strong financial performance and positive technical indicators. The company's consistent profit margins and cash flow generation are key strengths, although revenue growth and leverage pose risks. The stock's valuation is reasonable, with an attractive dividend yield. Technical analysis supports a bullish outlook, but caution is advised due to potential overbought conditions.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, enabling Kenvue to invest in growth opportunities and manage debt effectively.

Profit Margins

Consistent profit margins indicate effective cost management, supporting long-term profitability despite revenue fluctuations.

Brand Recognition

Strong brand recognition provides a competitive edge, enabling premium pricing and customer loyalty, crucial for sustained revenue.

Negative Factors

Revenue Decline

Declining revenue poses a risk to growth, necessitating strategic initiatives to regain momentum and ensure financial stability.

Rising Debt Levels

Rising debt levels can strain financial resources, limiting flexibility and increasing risk if not managed prudently.

Net Profit Margin Decline

Declining net profit margins may indicate rising costs or competitive pressures, impacting long-term profitability.

Kenvue, Inc. Business Overview & Revenue Model

Company Description

Kenvue, Inc. (KVUE) is a leading consumer health company that specializes in providing a wide range of over-the-counter (OTC) products and health solutions. Operating in sectors such as personal care, wellness, and hygiene, Kenvue's core offerings include well-known brands in pain relief, skin and hair care, oral health, and baby care. The company focuses on delivering innovative and high-quality products that enhance consumer health and well-being.

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

Kenvue, Inc. demonstrates a stable financial position with operational efficiency but declining profitability. The balance sheet reflects moderate leverage and stable equity. The cash flow statement is strong, indicating effective cash management. The company should focus on improving revenue growth and profitability to enhance its financial health.

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	15.01B	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: Neutral
• Last Price: 17.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVUE, the sentiment is Neutral. The current price of 17.35 is above the 20-day moving average (MA) of 16.39, above the 50-day MA of 15.93, and below the 200-day MA of 20.20, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$346.21B	21.63	31.90%	2.82%	1.23%	17.97%
UL	73 Outperform	$148.56B	24.90	28.36%	3.35%	-0.30%	-14.60%
CHD	72 Outperform	$20.30B	26.62	18.59%	1.39%	1.45%	42.04%
KVUE	71 Outperform	$32.99B	23.15	13.47%	4.76%	-2.94%	34.54%
CL	63 Neutral	$64.80B	22.53	450.35%	2.56%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$35.94B	18.34	136.87%	4.75%	-10.04%	-23.41%

Kenvue, Inc. Corporate Events

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.

Kenvue, Inc. Faces Uncertainty Amid Strategic Review: Potential Risks and Impacts on Future Performance

Kenvue, Inc. faces potential business risks as it undergoes a strategic review process initiated by its Board in July 2025. The company acknowledges that this review, aimed at optimizing its brand portfolio and enhancing performance, may not guarantee any specific outcome or shareholder value increase. The process could be costly, time-consuming, and disruptive, potentially affecting business operations, financial conditions, and stock price volatility. The uncertainty surrounding the successful implementation of any chosen strategic alternative adds to the risk factors impacting the company’s future performance.

Kenvue Faces Challenges Amid Cautious Optimism in Earnings Call

Kenvue’s recent earnings call painted a picture of cautious optimism amid significant challenges. The company faced disappointing Q2 results, operational complexities, and soft market conditions. However, efforts to bolster leadership and enhance brand performance offer a glimmer of hope. Despite these efforts, the revised guidance and ongoing challenges suggest a cautious sentiment moving forward.