Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $41.72B
• Dividend Yield: 3.77%
• Average Volume (3M): 18.03M
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.34
• Revenue Growth: -1.18%
• EPS Growth: -29.18%
• Country: US
• Employees: 22,000
• Sector: Technology
• Sector Strength: 84
• Industry: Household & Personal Products
• EPS (TTM): 0.24
• Shares Outstanding: 1,919,909,900
• 10 Day Avg. Volume: 17,568,170
• 30 Day Avg. Volume: 18,030,301
• PEG Ratio: 0.00
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.96
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 3.90
• 1Y Price Target: $25.33
• Price Target Upside: 16.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $24.00 ▲(10.45%Upside)

Kenvue, Inc. scores a 68, driven by its solid financial health and strategic initiatives to enhance growth, despite facing valuation concerns and mixed earnings guidance. Technical indicators suggest potential buying opportunities, but high P/E indicates caution.

Positive Factors

Brand Performance

Neutrogena has posted growth over the last four weeks as consumers respond to more feature/display activity.

Retail Trends

Kenvue's US retail trends have recently flipped to growth.

Negative Factors

Management Commentary

Recent management commentary on April destocking, a cautious consumer, and early seasonal trends appear to be incremental negatives.

Product Liability

It hasn't been smooth sailing for Kenvue since being spun out of JNJ, facing issues like major product liability lawsuits, softening demand, and underinvestment in key brands.

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 consumer health products. The company has a diverse portfolio of brands that are sold across multiple channels, including retail stores, e-commerce platforms, and direct-to-consumer sales. Key revenue streams for Kenvue include over-the-counter medications, skincare products, and essential health goods. Strategic partnerships with retailers and distributors, along with an emphasis on research and development for product innovation, significantly contribute to the company's earnings. Additionally, Kenvue leverages its strong brand recognition and global reach to maintain a competitive advantage in the consumer health market.

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.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.30B	15.46B	15.44B	14.95B	15.05B	14.47B
	Gross Profit
8.88B	8.96B	8.64B	8.29B	8.42B	7.85B
	EBIT
2.41B	1.84B	2.51B	2.67B	2.92B	-979.00M
	EBITDA
3.06B	2.47B	3.17B	3.64B	3.87B	3.79B
	Net Income Common Stockholders
1.06B	1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	1.07B	1.38B	1.23B	740.00M	618.00M
	Total Assets
27.28B	25.60B	27.85B	27.32B	27.93B	29.18B
	Total Debt
8.70B	8.72B	8.43B	116.00M	258.00M	320.00M
	Net Debt
7.54B	7.65B	7.04B	-1.11B	-482.00M	-298.00M
	Total Liabilities
16.66B	15.93B	16.64B	7.29B	7.53B	10.82B
	Stockholders Equity
10.62B	9.67B	11.21B	20.02B	20.40B	18.36B
Cash Flow		Free Cash Flow
1.45B	1.33B	2.70B	2.15B	39.00M	3.17B
	Operating Cash Flow
1.91B	1.77B	3.17B	2.52B	334.00M	3.40B
	Investing Cash Flow
-440.00M	-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: 21.73
• 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 21.73 is below the 20-day moving average (MA) of 23.25, below the 50-day MA of 23.04, and below the 200-day MA of 22.26, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 31.71 is Neutral, neither overbought nor oversold. The STOCH value of 9.02 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
UL	76 Outperform	$154.43B	25.28	30.53%	2.94%	1.99%	-10.59%
PG	74 Outperform	$384.55B	26.05	30.29%	2.48%	-0.16%	2.74%
CHD	69 Neutral	$24.40B	42.51	13.35%	1.17%	2.18%	-26.08%
KVUE	68 Neutral	$41.72B	39.62	10.22%	3.77%	-1.18%	-29.18%
KMB	68 Neutral	$44.31B	18.20	229.84%	3.68%	-3.12%	34.80%
CL	66 Neutral	$73.13B	25.55	977.07%	2.24%	0.98%	12.12%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%

Kenvue, Inc. Corporate Events

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.