Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $32.57B
• Dividend Yield: 4.88%
• Average Volume (3M): 25.70M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.29
• Revenue Growth: -2.15%
• EPS Growth: 26.65%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.29
• Shares Outstanding: 1,919,070,000
• 10 Day Avg. Volume: 32,921,534
• 30 Day Avg. Volume: 25,696,806
• 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: 1.47
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 15.78
• 1Y Price Target: $21.95
• Price Target Upside: 30.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 59 Neutral
• Price Target: $17.50 ▲(3.80% Upside)

Kenvue's overall stock score reflects a mix of stable financial performance and strong cash management, offset by bearish technical indicators and a challenging earnings outlook. The high dividend yield provides some support, but the stock faces headwinds from declining profitability and revised guidance.

Positive Factors

Strong Market Share

Kenvue's ability to maintain or grow market share in the Self Care segment indicates strong brand loyalty and competitive positioning, which can drive long-term revenue stability and growth.

Leadership and Capabilities

Strengthening leadership and capabilities in key areas like digital and AI positions Kenvue to better adapt to market changes and enhance operational efficiency, supporting sustainable growth.

Cash Flow Management

Efficient cash generation and management provide Kenvue with the financial flexibility to invest in growth opportunities and weather economic fluctuations, enhancing long-term resilience.

Negative Factors

Declining Profitability

A declining net profit margin indicates challenges in maintaining cost efficiency, which could impact Kenvue's ability to generate sustainable profits and shareholder returns over time.

Negative Revenue Growth

Negative revenue growth suggests potential challenges in market demand or competitive pressures, which could hinder Kenvue's ability to expand its market presence and drive future growth.

Guidance Revision

The downward revision in sales guidance reflects potential market challenges and strategic adjustments, which may affect Kenvue's growth trajectory and investor confidence in the near to medium term.

Kenvue, Inc. Business Overview & Revenue Model

Company Description

Kenvue, Inc. (KVUE) is a prominent player in the consumer health industry, specializing in the development, production, and marketing of a diverse range of health and wellness products. The company operates across several sectors, including over-the-counter medications, skincare, and other personal care products. Kenvue is committed to enhancing consumer health by providing innovative and reliable solutions that cater to the evolving needs of its global customer base.

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 a stable financial position with operational efficiency but faces declining profitability. The balance sheet reflects moderate leverage and stable equity, while the cash flow statement shows strong cash management. The company needs to focus on improving revenue growth and profitability.

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	15.14B	15.46B	15.44B	14.95B	15.05B	14.47B
Gross Profit	8.78B	8.96B	8.64B	8.29B	8.42B	7.85B
EBITDA	3.04B	2.47B	3.17B	3.28B	3.66B	3.73B
Net Income	1.42B	1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet
Total Assets	27.13B	25.60B	27.85B	27.32B	27.93B	29.18B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	1.38B	1.23B	740.00M	618.00M
Total Debt	8.74B	8.72B	8.43B	9.05B	129.00M	320.00M
Total Liabilities	16.40B	15.93B	16.64B	7.35B	7.53B	10.82B
Stockholders Equity	10.73B	9.67B	11.21B	19.97B	20.40B	18.36B
Cash Flow
Free Cash Flow	1.63B	1.33B	2.70B	2.15B	39.00M	3.17B
Operating Cash Flow	2.09B	1.77B	3.17B	2.52B	334.00M	3.40B
Investing Cash Flow	-445.00M	-425.00M	-488.00M	-390.00M	-171.00M	-83.00M
Financing Cash Flow	-1.61B	-1.56B	-2.53B	-1.58B	0.00	-3.46B

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 16.86 is below the 20-day moving average (MA) of 18.91, below the 50-day MA of 20.53, and below the 200-day MA of 21.55, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 27.93 is Positive, neither overbought nor oversold. The STOCH value of 9.57 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
PG	74 Outperform	356.74B	23.43	30.71%	2.71%	0.29%	7.85%
UL	71 Outperform	147.00B	24.73	28.73%	3.30%	-0.30%	-14.60%
CHD	69 Neutral	21.16B	41.13	11.95%	1.35%	1.13%	-34.78%
CL	63 Neutral	65.57B	22.53	414.39%	2.51%	0.05%	3.55%
KVUE	59 Neutral	$32.57B	23.05	13.56%	4.88%	-2.15%	26.65%
KMB	57 Neutral	41.12B	17.07	191.19%	4.03%	-6.89%	7.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.

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.