Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $46.92B
• Dividend Yield: 3.33%
• Average Volume (3M): 19.27M
• Price to Earnings (P/E): 44.6
• Beta (1Y): 0.38
• Revenue Growth: -1.18%
• EPS Growth: -29.18%
• Country: US
• Employees: 22,000
• Sector: Technology
• Sector Strength: 65
• Industry: Household & Personal Products
• EPS (TTM): 0.24
• Shares Outstanding: 1,919,909,900
• 10 Day Avg. Volume: 20,289,374
• 30 Day Avg. Volume: 19,274,884
• PEG Ratio: -12.50
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.13
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 4.11
• 1Y Price Target: $25.18
• Price Target Upside: 3.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Kenvue's overall stock score reflects stable revenue generation and effective strategic execution. However, profitability pressures, high leverage, and a high P/E ratio pose cautionary notes. Technical indicators show positive momentum, but operational challenges and external uncertainties, such as tariffs and foreign exchange impacts, temper the optimism.

Positive Factors

Earnings

KVUE posted better-than-feared results with both an operating sales growth and earnings per share beat.

Financial Performance

The reaffirmation of full-year organic sales guidance provides confidence in the company's performance expectations.

Strategic Actions

The market reacted positively to the CFO transition, linking it to potential strategic actions at KVUE.

Negative Factors

Consumption Trends

Risks to the full-year outlook include recent deceleration in category consumption and retailers tightening order management.

Earnings Guidance

KVUE's earnings guidance was lowered due to the impact of tariffs, despite efforts to mitigate the effects.

Financial Challenges

Operating margin and EPS were trimmed due to the estimated impact of tariffs, indicating potential financial challenges.

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's financial performance shows stable revenue with challenges in profitability and increased leverage. The company has a consistent cash generation capacity but struggles with declining profit margins and growing debt levels.

Income Statement

The income statement reflects moderate performance, with stable gross profit margins around 58% over the years. However, net profit margin has declined from 13.5% in 2019 to 6.7% in 2024, indicating pressure on profitability. Revenue growth has been modest, with a slight increase over time. EBIT and EBITDA margins have decreased recently, showing a drop in operational efficiency.

Balance Sheet

The balance sheet reveals a stable equity base but increased leverage, with a debt-to-equity ratio rising from negligible in 2020 to 0.89 in 2024. ROE has decreased from 7.8% in 2020 to 10.7% in 2024, reflecting challenges in generating returns. The equity ratio has decreased, suggesting higher reliance on debt financing.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, with a significant drop from 2023 to 2024. The operating cash flow to net income ratio has remained strong, indicating efficient cash generation relative to net income. However, a decline in free cash flow to net income ratio suggests potential cash flow management issues.

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
	EBIT
1.84B	2.51B	2.67B	2.92B	-979.00M
	EBITDA
2.47B	3.17B	3.64B	3.87B	3.79B
	Net Income Common Stockholders
1.03B	1.66B	2.06B	2.08B	-879.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.38B	1.23B	740.00M	618.00M
	Total Assets
25.60B	27.85B	27.32B	27.93B	29.18B
	Total Debt
8.72B	8.43B	116.00M	258.00M	320.00M
	Net Debt
7.65B	7.04B	-1.11B	-482.00M	-298.00M
	Total Liabilities
15.93B	16.64B	7.29B	7.53B	10.82B
	Stockholders Equity
9.67B	11.21B	20.02B	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: Positive
• Last Price: 24.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVUE, the sentiment is Positive. The current price of 24.44 is above the 20-day moving average (MA) of 23.34, above the 50-day MA of 23.22, and above the 200-day MA of 22.10, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$153.12B	24.65	30.53%	2.97%	1.99%	-10.59%
PG	74 Outperform	$369.64B	25.04	30.29%	2.58%	-0.16%	2.74%
KMB	70 Outperform	$45.35B	18.63	229.84%	3.70%	-3.12%	34.80%
KVUE	69 Neutral	$46.92B	44.57	10.22%	3.33%	-1.18%	-29.18%
CHD	63 Neutral	$22.55B	39.29	13.35%	1.25%	2.18%	-26.08%
CL	63 Neutral	$72.78B	25.43	977.07%	2.25%	0.98%	12.12%
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%

Kenvue, Inc. Corporate Events

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.

Spark’s Take on KVUE Stock

According to Spark, TipRanks’ AI Analyst, KVUE is a Neutral.

Kenvue’s overall stock score reflects stable revenue and cash generation, though profitability pressures and high valuation are concerns. Technical indicators show an upward trend, and strategic board changes provide a positive outlook. However, operational challenges and external uncertainties temper the optimism.

To see Spark’s full report on KVUE stock, click here.

Kenvue Inc. Expands Board with Starboard Agreement

On March 5, 2025, Kenvue Inc. announced a cooperation agreement with Starboard Value, resulting in the appointment of three new directors to its Board: Sarah Hofstetter, Erica Mann, and Jeffrey C. Smith. This strategic move temporarily expands the Board from 11 to 14 members and aligns with Starboard’s commitment to support Kenvue’s director nominees at the 2025 Annual Meeting. The agreement aims to enhance Kenvue’s growth and shareholder value, with Starboard withdrawing its previous director nominations and agreeing to a standstill period.