Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $40.95B
• Dividend Yield: 3.86%
• Average Volume (3M): 19.31M
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.32
• Revenue Growth: -2.15%
• EPS Growth: 26.65%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Household & Personal Products
• EPS (TTM): 0.29
• Shares Outstanding: 1,919,070,000
• 10 Day Avg. Volume: 23,561,720
• 30 Day Avg. Volume: 19,309,590
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 15.68
• 1Y Price Target: $23.83
• Price Target Upside: 12.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $24.00 ▲(13.10% Upside)

Kenvue, Inc. scores moderately well overall, driven by strong financial performance and a stable dividend yield. However, high valuation and mixed technical indicators suggest caution. The earnings call highlighted both strategic successes and challenges, contributing to a balanced outlook.

Positive Factors

Brand Strength

Kenvue has a strong group of brands and a team to build on, despite the near-term headwinds and uncertainty.

Portfolio Potential

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

Negative Factors

Earnings Expectations

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

Operational Complexity

The Kenvue portfolio has too much complexity across the organization, including too many SKUs and brands playing across too many countries.

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 sound financial health, characterized by strong margins and cash flow. While there is a slight contraction in revenue growth, the company exhibits efficient operational management and a balanced capital structure. Continued focus on revenue expansion and equity strength will support ongoing financial stability and growth.

Income Statement

Kenvue, Inc. shows a steady revenue base with a Gross Profit Margin of approximately 58% TTM, aligning well with industry standards. However, the Revenue Growth Rate TTM is slightly negative at -0.99%, indicating a minor contraction in sales. The Net Profit Margin TTM stands at 6.9%, which is reasonable, though there is room for improvement. EBIT and EBITDA margins are robust at 15.8% and 20% respectively, indicating efficient operational management.

Balance Sheet

The company maintains a healthy Debt-to-Equity ratio of 0.87, suggesting moderate leverage. Return on Equity TTM is 10.5%, indicating decent profitability relative to shareholder equity. The Equity Ratio is 38.3%, reflecting a stable capital structure. However, the gradual decline in Stockholders' Equity over the past periods warrants attention.

Cash Flow

Cash flows are strong, with a Free Cash Flow to Net Income ratio of 1.37, indicating solid cash generation relative to earnings. Operating Cash Flow to Net Income ratio is 1.81, suggesting strong operational cash flow management. The Free Cash Flow Growth Rate of 8.63% TTM shows positive momentum in cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.46B	15.44B	14.95B	15.05B	14.47B
Gross Profit	8.96B	8.64B	8.29B	8.42B	7.85B
EBITDA	2.47B	3.17B	3.64B	3.87B	3.79B
Net Income	1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet
Total Assets	25.60B	27.85B	27.32B	27.93B	29.18B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.38B	1.23B	740.00M	618.00M
Total Debt	8.72B	8.43B	116.00M	258.00M	320.00M
Total Liabilities	15.93B	16.64B	7.35B	7.53B	10.82B
Stockholders Equity	9.67B	11.21B	19.97B	20.40B	18.36B
Cash Flow
Free Cash Flow	1.33B	2.70B	2.15B	39.00M	3.17B
Operating Cash Flow	1.77B	3.17B	2.52B	334.00M	3.40B
Investing Cash Flow	-425.00M	-488.00M	-390.00M	-171.00M	-83.00M
Financing Cash Flow	-1.56B	-2.53B	-1.58B	0.00	-3.46B

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.22
• 50DMA: Negative
• 100DMA: Negative
• 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 21.22 is below the 20-day moving average (MA) of 21.93, below the 50-day MA of 21.67, and below the 200-day MA of 22.21, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.96 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	73 Outperform	$359.58B	23.59	31.23%	2.66%	0.29%	7.85%
UL	73 Outperform	$148.39B	24.86	28.36%	3.19%	-0.30%	-14.60%
KVUE	70 Outperform	$40.95B	28.99	13.56%	3.86%	-2.15%	26.65%
CHD	64 Neutral	$22.33B	43.23	12.07%	1.26%	1.13%	-34.78%
CL	63 Neutral	$68.25B	23.74	705.21%	2.42%	0.05%	3.55%
Sector *	62 Neutral	HK$21.69B	10.08	5.51%	4.91%	1.14%	-21.79%
KMB	61 Neutral	$45.18B	18.77	196.26%	3.70%	-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.

The most recent analyst rating on (KVUE) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

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.

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 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.

The most recent analyst rating on (KVUE) stock is a Sell with a $18.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue Inc. Completes $750 Million Senior Notes Offering

On May 22, 2025, Kenvue Inc. completed a public offering of $750 million in 4.850% Senior Notes due 2032, with the proceeds intended for general corporate purposes. The issuance, governed by an indenture with Deutsche Bank Trust Company Americas, includes limitations on certain company transactions and allows for early redemption, impacting Kenvue’s financial strategy and stakeholder interests.

The most recent analyst rating on (KVUE) stock is a Sell with a $18.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue Appoints Amit Banati as New CFO

On May 8, 2025, Kenvue Inc. announced the appointment of Amit Banati as the new Chief Financial Officer, effective May 12, 2025, succeeding Paul Ruh who will transition to a strategic advisor role. The company also reported a 3.9% decrease in net sales for the first quarter of 2025 compared to the previous year, with plans to mitigate the impact of tariffs and foreign exchange rates on its financial outlook for the year.