Kenvue, Inc. (KVUE) AI Stock Analysis

• Market Cap: $30.60B
• Dividend Yield: 5.72%
• Average Volume (3M): 37.86M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.18
• 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: 1,915,802,100
• 10 Day Avg. Volume: 31,376,975
• 30 Day Avg. Volume: 37,864,623
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $18.91
• Price Target Upside: 17.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $17.00 ▲(5.33% Upside)

Kenvue, Inc.'s overall stock score is primarily influenced by its stable financial performance and strong cash flow management. However, the bearish technical indicators and high P/E ratio suggest potential overvaluation and negative market sentiment. The attractive dividend yield provides a positive aspect for income-focused investors.

Positive Factors

Cash Flow Management

Strong cash flow management indicates Kenvue's ability to generate and effectively manage cash, supporting long-term investments and stability.

Operational Efficiency

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Strategic Leadership Change

The appointment of a seasoned digital marketing leader suggests a strategic focus on digital transformation, potentially driving growth and innovation.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market expansion or product demand, potentially impacting future profitability and market share.

Increased Leverage

Higher leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Profitability Concerns

A declining net profit margin suggests reduced profitability, which could impact the company's ability to reinvest in business growth and innovation.

Kenvue, Inc. Business Overview & Revenue Model

Company Description

Kenvue, Inc. (KVUE) is a leading consumer health company that specializes in providing a wide range of over-the-counter (OTC) products and health solutions. Operating in sectors such as personal care, wellness, and hygiene, Kenvue's core offerings include well-known brands in pain relief, skin and hair care, oral health, and baby care. The company focuses on delivering innovative and high-quality products that enhance consumer health and well-being.

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	11.34B	15.46B	15.44B	14.95B	15.05B	14.47B
Gross Profit	6.66B	8.96B	8.64B	8.29B	8.42B	7.85B
EBITDA	2.30B	2.47B	3.17B	3.28B	3.66B	3.73B
Net Income	1.14B	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	8.97B	8.72B	8.43B	9.05B	129.00M	320.00M
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	978.00M	1.33B	2.70B	2.15B	39.00M	3.17B
Operating Cash Flow	1.34B	1.77B	3.17B	2.52B	334.00M	3.40B
Investing Cash Flow	-361.00M	-425.00M	-488.00M	-390.00M	-171.00M	-83.00M
Financing Cash Flow	-968.00M	-1.56B	-2.53B	-1.58B	0.00	-3.46B

Kenvue, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 16.14 is above the 20-day moving average (MA) of 15.37, below the 50-day MA of 17.02, and below the 200-day MA of 20.76, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$343.90B	21.48	31.90%	2.84%	1.23%	17.97%
UL	73 Outperform	$147.84B	24.82	28.36%	3.17%	-0.30%	-14.60%
CHD	72 Outperform	$20.80B	27.26	18.59%	1.39%	1.45%	42.04%
KVUE	63 Neutral	$30.60B	21.47	13.47%	5.72%	-2.94%	34.54%
CL	63 Neutral	$61.70B	21.45	450.35%	2.69%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$33.40B	17.05	136.87%	4.97%	-10.04%	-23.41%

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.

The most recent analyst rating on (KVUE) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Kenvue, Inc. stock, see the KVUE Stock Forecast page.

Kenvue, Inc. Faces Uncertainty Amid Strategic Review: Potential Risks and Impacts on Future Performance

Kenvue, Inc. faces potential business risks as it undergoes a strategic review process initiated by its Board in July 2025. The company acknowledges that this review, aimed at optimizing its brand portfolio and enhancing performance, may not guarantee any specific outcome or shareholder value increase. The process could be costly, time-consuming, and disruptive, potentially affecting business operations, financial conditions, and stock price volatility. The uncertainty surrounding the successful implementation of any chosen strategic alternative adds to the risk factors impacting the company’s future performance.

Kenvue Faces Challenges Amid Cautious Optimism in Earnings Call

Kenvue’s recent earnings call painted a picture of cautious optimism amid significant challenges. The company faced disappointing Q2 results, operational complexities, and soft market conditions. However, efforts to bolster leadership and enhance brand performance offer a glimmer of hope. Despite these efforts, the revised guidance and ongoing challenges suggest a cautious sentiment moving forward.