Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $32.61B
• Dividend Yield: 4.85%
• Average Volume (3M): 37.36M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.03
• 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: 38,653,522
• 30 Day Avg. Volume: 37,362,378
• 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: 1.21
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $19.42
• Price Target Upside: 14.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $15.04B

• Rating: 73 Outperform
• Price Target: $18.50 ▲(8.70% Upside)

Kenvue's overall stock score is driven by its solid financial performance and attractive valuation, supported by a significant corporate event in the form of a merger with Kimberly-Clark. While technical analysis shows mixed signals, the strategic merger is a major positive factor, enhancing the company's growth prospects.

Positive Factors

Strategic Merger

The merger with Kimberly-Clark is set to create a global leader in health and wellness, leveraging complementary portfolios for significant synergies.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and debt management, supporting long-term growth.

Brand Strength

Strong brand recognition allows premium pricing and market penetration, providing a durable competitive advantage in consumer health products.

Negative Factors

Rising Debt Levels

Increased leverage could strain financial stability, requiring careful management to avoid impacting cash flow and operational flexibility.

Revenue Decline

Declining revenue growth may signal market challenges or competitive pressures, potentially affecting future profitability and market position.

Decreasing Profit Margins

Falling profit margins could indicate rising costs or pricing pressures, impacting long-term earnings potential and financial health.

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

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: Negative
• Last Price: 17.02
• 50DMA: Positive
• 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 17.02 is below the 20-day moving average (MA) of 17.08, above the 50-day MA of 16.19, and below the 200-day MA of 19.82, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 47.31 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
KVUE	73 Outperform	$32.61B	22.88	13.47%	4.85%	-2.94%	34.54%
UL	73 Outperform	$142.68B	23.62	28.36%	3.77%	-0.30%	-14.60%
CHD	72 Outperform	$20.43B	26.79	18.59%	1.39%	1.45%	42.04%
PG	69 Neutral	$337.56B	21.09	31.90%	2.89%	1.23%	17.97%
CL	63 Neutral	$63.16B	21.96	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$33.40B	17.05	136.87%	5.01%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.