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Kenvue, Inc. (KVUE)
:KVUE
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Kenvue, Inc.
(NYSE:KVUE)
Rating:68Neutral
Price Target:
$24.00
â–²(11.89%Upside)
Positive Factors
Brand Performance
Tracked data shows early signs of recovery for key brands like Neutrogena and Aveeno, indicating management's initiatives might be starting to bear fruit.
Innovation and Expansion
Kenvue's innovation engine continues with today's announcement of the globally-recognized Tylenol brand expanding into the supplement market.
US Market Growth
Kenvue's US retail trends have recently flipped to growth.
Negative Factors
Distribution and Market Headwinds
Ongoing headwinds from China distribution challenges persist for KVUE.
Market Challenges
The company faces several near-term challenges, including broader macro uncertainty and ongoing consumer pressure.
Portfolio Reshaping
The news of potential brand divestitures could be viewed as a disappointment for investors looking for greater portfolio reshaping actions.
Kenvue, Inc. (KVUE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.18B
Dividend Yield3.82%
Average Volume (3M)19.77M
Price to Earnings (P/E)39.1
Beta (1Y)0.34
Revenue Growth-1.18%
EPS Growth-29.18%
CountryUS
Employees22,000
SectorTechnology
Sector Strength78
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.24
Shares Outstanding1,919,909,900
10 Day Avg. Volume22,621,799
30 Day Avg. Volume19,769,272
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.77
Price to Sales (P/S)0.00
P/FCF Ratio16.04
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda3.90
Forecast
1Y Price Target
$25.33Price Target Upside18.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Kenvue, Inc. Business Overview & Revenue Model
Company DescriptionKenvue, Inc. (KVUE) is a leading global consumer health company that operates across various sectors, including personal health care, skin health, and essential health products. The company is renowned for its portfolio of well-established brands, offering a range of products that cater to health and wellness needs. Kenvue is dedicated to delivering innovative solutions that enhance the quality of life for consumers around the world.
How the Company Makes MoneyKenvue, 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. Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -6.37%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Kenvue, with strong execution of strategic plans and market share gains in certain segments overshadowed by organic sales declines and challenges in the Skin Health and Beauty segment. The impact of tariffs and foreign exchange rates also posed significant challenges.Q1-2025 Updates
Positive Updates
Strong Execution of Strategic Plans
Kenvue demonstrated strong execution of strategic plans, maintaining organic sales growth outlook for the year amidst significant macro shifts and seasonal variability.
Tylenol Outperforms in the US Market
Tylenol gained share for the eleventh straight quarter, surpassing competitors, driven by successful innovation and consumer engagement campaigns, such as the 'Greatness Hurts' football themed campaign.
Zyrtec Gains Market Share
Zyrtec improved both value and volume share, increasing household penetration and distribution in the Allergy segment.
Completion of Transition Services Agreement Program
Kenvue completed the Transition Services Agreement program, streamlining operations and exiting over 2,300 TSAs without business disruption.
Aveeno’s Double-Digit Growth in EMEA
Aveeno brand experienced double-digit growth in EMEA, particularly in the UK and Central Europe, contributing to the twelfth consecutive quarter of organic sales growth in the region.
Negative Updates
Organic Sales Decline
Organic sales declined 1.2% compared to Q1 last year, with a significant 3% to 4% headwind from destocking in China and strategic investments in pricing and trade in the US.
Skin Health and Beauty Segment Challenges
Organic sales in the Skin Health and Beauty segment declined by 4.8% due to destocking in China, a soft sun season in Latin America, and strategic price investments in the US.
Impact of Tariffs and Foreign Exchange Rates
Adjusted operating margin and adjusted diluted EPS outlooks were updated to reflect incremental costs associated with current tariffs and foreign exchange rates.
Essential Health Segment Performance
The Essential Health segment saw flat organic sales as growth in Wound Care was offset by declines in Women's Health and Oral Care, impacted by competitive pressures and destocking in Asia.
Company Guidance
During the Kenvue First Quarter 2025 Earnings Conference Call, the company provided key guidance metrics for the year. Despite a 1.2% decline in organic sales in Q1, Kenvue maintained its full-year organic sales growth outlook of 2% to 4%, anticipating a growth acceleration in the second half. Adjusted operating margin is expected to contract slightly due to $150 million in estimated tariff impacts, though Kenvue is implementing mitigation strategies through productivity initiatives and supply chain optimization. Adjusted diluted EPS is projected to be flat for 2025, with a low-single-digit increase on a constant currency basis. The company highlighted strong execution in its Self Care segment, with organic sales growth of 0.3%, while Skin Health and Beauty saw a 4.8% decline due to destocking and strategic price investments. Looking forward, Kenvue plans to leverage innovation and marketing to improve its competitive position amidst dynamic market conditions.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.78
Positive
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.75
Positive
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.93B | 15.46B | 15.44B | 14.95B | 15.05B | 14.47B | Gross Profit |
| 4.47B | 8.96B | 8.64B | 8.29B | 8.42B | 7.85B | EBIT |
| 1.41B | 1.84B | 2.51B | 2.67B | 2.92B | -979.00M | EBITDA |
| 1.82B | 2.47B | 3.17B | 3.64B | 3.87B | 3.79B | Net Income Common Stockholders |
| 868.00M | 1.03B | 1.66B | 2.06B | 2.08B | -879.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.06B | 1.07B | 1.38B | 1.23B | 740.00M | 618.00M | Total Assets |
| 26.26B | 25.60B | 27.85B | 27.32B | 27.93B | 29.18B | Total Debt |
| 8.74B | 8.72B | 8.43B | 116.00M | 258.00M | 320.00M | Net Debt |
| 7.68B | 7.65B | 7.04B | -1.11B | -482.00M | -298.00M | Total Liabilities |
| 16.20B | 15.93B | 16.64B | 7.29B | 7.53B | 10.82B | Stockholders Equity |
| 10.05B | 9.67B | 11.21B | 20.02B | 20.40B | 18.36B |
| Cash Flow | Free Cash Flow | ||||
| 1.23B | 1.33B | 2.70B | 2.15B | 39.00M | 3.17B | Operating Cash Flow |
| 1.42B | 1.77B | 3.17B | 2.52B | 334.00M | 3.40B | Investing Cash Flow |
| -182.00M | -425.00M | -488.00M | -390.00M | -171.00M | -83.00M | Financing Cash Flow |
| -9.53B | -1.56B | -2.53B | -1.58B | 0.00 | -3.46B |
Kenvue, Inc. Technical Analysis
Negative
21.45
Price Trends
22.89
Negative
22.55
Negative
22.27
Negative
Market Momentum
-0.49
Positive
36.79
Neutral
19.80
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 21.45 is below the 20-day moving average (MA) of 22.88, below the 50-day MA of 22.89, and below the 200-day MA of 22.27, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 19.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KVUE.
Kenvue, Inc. Risk Analysis
Kenvue, Inc. disclosed 59 risk factors in its most recent earnings report. Kenvue, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have debt obligations that could adversely affect us. Q4, 2024
2.
We may not fully realize the expected cost savings and/or operating efficiencies associated with our restructuring programs, including the 2024 Multi-Year Restructuring Initiative, or our strategic initiatives, which could adversely affect us. Q4, 2024
3.
Uncertainty in the development, deployment, use and regulation of artificial intelligence in our internal processes, manufacturing operations, products and services, as well as our business more broadly, could adversely affect us. Q4, 2024
Kenvue, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $154.82B | 25.14 | 30.53% | 3.32% | 1.99% | -10.59% | |
74 Outperform | $382.58B | 25.46 | 30.29% | 2.64% | -0.16% | 2.74% | |
68 Neutral | $41.18B | 39.11 | 10.22% | 3.82% | -1.18% | -29.18% | |
68 Neutral | $44.43B | 17.83 | 229.84% | 3.85% | -3.12% | 34.80% | |
65 Neutral | $24.40B | 41.66 | 13.35% | 1.19% | 2.18% | -26.08% | |
64 Neutral | $75.48B | 25.56 | 977.07% | 2.30% | 0.98% | 12.12% | |
62 Neutral | $11.80B | 10.08 | -7.46% | 2.99% | 7.37% | -8.21% |
* Technology Sector Average
Performance Comparison
KVUE
Kenvue, Inc.
21.45
3.34
18.44%
CHD
Church & Dwight
97.09
-10.97
-10.15%
CL
Colgate-Palmolive
90.26
-3.67
-3.91%
KMB
Kimberly Clark
130.84
-4.73
-3.49%
PG
Procter & Gamble
160.28
-3.22
-1.97%
UL
Unilever
62.67
8.08
14.80%
Kenvue, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Kenvue Inc. Shareholders Approve Key Proposals at 2025 Meeting
Neutral
May 27, 2025
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.
Private Placements and FinancingBusiness Operations and Strategy
Kenvue Inc. Completes $750 Million Senior Notes Offering
Neutral
May 22, 2025
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.
Executive/Board ChangesFinancial Disclosures
Kenvue Appoints Amit Banati as New CFO
Negative
May 8, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.