KENVUE INC (KVUE) Stock Fundamental Analysis
NYSE:KVUE - New York Stock Exchange, Inc. - US49177J1025 - Common Stock - Currency: USD
Overall KVUE gets a fundamental rating of 4 out of 10. We evaluated KVUE against 35 industry peers in the Personal Care Products industry. KVUE has a medium profitability rating, but doesn't score so well on its financial health evaluation. KVUE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KVUE was profitable.
In the past year KVUE had a positive cash flow from operations.
KVUE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KVUE had a positive operating cash flow.
1.2 Ratios
KVUE's Return On Assets of 4.02% is fine compared to the rest of the industry. KVUE outperforms 62.86% of its industry peers.
KVUE's Return On Equity of 10.50% is fine compared to the rest of the industry. KVUE outperforms 74.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.17%, KVUE is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
KVUE had an Average Return On Invested Capital over the past 3 years of 9.78%. This is significantly below the industry average of 16.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 10.5% | ||
| ROIC | 9.17% |
ROA(3y)5.88%
ROA(5y)4.38%
ROE(3y)11.97%
ROE(5y)8.22%
ROIC(3y)9.78%
ROIC(5y)9.81%
1.3 Margins
Looking at the Profit Margin, with a value of 6.90%, KVUE is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Profit Margin of KVUE has declined.
KVUE has a better Operating Margin (17.14%) than 82.86% of its industry peers.
In the last couple of years the Operating Margin of KVUE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.18%, KVUE is in line with its industry, outperforming 45.71% of the companies in the same industry.
KVUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.14% | ||
| PM (TTM) | 6.9% | ||
| GM | 58.18% |
OM growth 3Y-2.12%
OM growth 5Y1.39%
PM growth 3Y-20.95%
PM growth 5Y-7.83%
GM growth 3Y1.24%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
KVUE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KVUE remains at a similar level compared to 1 year ago.
The debt/assets ratio for KVUE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.57 indicates that KVUE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KVUE (2.57) is comparable to the rest of the industry.
The Debt to FCF ratio of KVUE is 6.03, which is on the high side as it means it would take KVUE, 6.03 years of fcf income to pay off all of its debts.
KVUE has a Debt to FCF ratio of 6.03. This is in the better half of the industry: KVUE outperforms 65.71% of its industry peers.
KVUE has a Debt/Equity ratio of 0.79. This is a neutral value indicating KVUE is somewhat dependend on debt financing.
The Debt to Equity ratio of KVUE (0.79) is worse than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.11
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.86 indicates that KVUE may have some problems paying its short term obligations.
KVUE has a Current ratio of 0.86. This is amonst the worse of the industry: KVUE underperforms 80.00% of its industry peers.
KVUE has a Quick Ratio of 0.86. This is a bad value and indicates that KVUE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.60, KVUE is doing worse than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for KVUE have decreased by -9.84% in the last year.
Measured over the past years, KVUE shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.76% on average per year.
The Revenue has decreased by -1.19% in the past year.
The Revenue has been growing slightly by 1.53% on average over the past years.
EPS 1Y (TTM)-9.84%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-3.93%
3.2 Future
KVUE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.12% yearly.
KVUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y2.13%
EPS Next 2Y4.63%
EPS Next 3Y5.29%
EPS Next 5Y6.12%
Revenue Next Year0.2%
Revenue Next 2Y1.92%
Revenue Next 3Y2.47%
Revenue Next 5Y2.65%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.01, the valuation of KVUE can be described as rather expensive.
Based on the Price/Earnings ratio, KVUE is valued a bit cheaper than 65.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of KVUE to the average of the S&P500 Index (26.60), we can say KVUE is valued inline with the index average.
The Price/Forward Earnings ratio is 19.40, which indicates a rather expensive current valuation of KVUE.
Based on the Price/Forward Earnings ratio, KVUE is valued a bit cheaper than 65.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KVUE to the average of the S&P500 Index (22.43), we can say KVUE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
KVUE's Enterprise Value to EBITDA is on the same level as the industry average.
KVUE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KVUE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.35
PEG (5Y)N/A
EPS Next 2Y4.63%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, KVUE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.69, KVUE pays a better dividend. On top of this KVUE pays more dividend than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KVUE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
KVUE has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
147.82% of the earnings are spent on dividend by KVUE. This is not a sustainable payout ratio.
DP147.82%
EPS Next 2Y4.63%
EPS Next 3Y5.29%
NYSE:KVUE (5/21/2025, 10:54:10 AM)
24.215
+0.09 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners102%
Inst Owner Change-1.28%
Ins Owners0.02%
Ins Owner Change0.18%
Market Cap46.46B
Analysts71.2
Price Target24.76 (2.25%)
Short Float %2.12%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.81
Dividend Growth(5Y)N/A
DP147.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-1.2%
Max EPS beat(2)3.05%
EPS beat(4)3
Avg EPS beat(4)4.01%
Min EPS beat(4)-1.2%
Max EPS beat(4)13.92%
EPS beat(8)6
Avg EPS beat(8)4.12%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.78%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.95%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.24%
PT rev (3m)-0.23%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.4 | ||
| P/S | 3.04 | ||
| P/FCF | 32.04 | ||
| P/OCF | 24.33 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)1.1
EY4.54%
EPS(NY)1.25
Fwd EY5.15%
FCF(TTM)0.76
FCFY3.12%
OCF(TTM)1
OCFY4.11%
SpS7.98
BVpS5.24
TBVpS-4
PEG (NY)10.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 10.5% | ||
| ROCE | 13.38% | ||
| ROIC | 9.17% | ||
| ROICexc | 9.65% | ||
| ROICexgc | 78.42% | ||
| OM | 17.14% | ||
| PM (TTM) | 6.9% | ||
| GM | 58.18% | ||
| FCFM | 9.48% |
ROA(3y)5.88%
ROA(5y)4.38%
ROE(3y)11.97%
ROE(5y)8.22%
ROIC(3y)9.78%
ROIC(5y)9.81%
ROICexc(3y)10.35%
ROICexc(5y)10.27%
ROICexgc(3y)82.34%
ROICexgc(5y)N/A
ROCE(3y)13.46%
ROCE(5y)13.38%
ROICexcg growth 3Y3.71%
ROICexcg growth 5YN/A
ROICexc growth 3Y4.38%
ROICexc growth 5YN/A
OM growth 3Y-2.12%
OM growth 5Y1.39%
PM growth 3Y-20.95%
PM growth 5Y-7.83%
GM growth 3Y1.24%
GM growth 5Y1.68%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 75.53% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.11% | ||
| Profit Quality | 137.31% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.57 |
F-Score7
WACC8.29%
ROIC/WACC1.11
Cap/Depr(3y)67.6%
Cap/Depr(5y)54.77%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.38%
Profit Quality(3y)131.61%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.84%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-14.29%
EPS Next Y2.13%
EPS Next 2Y4.63%
EPS Next 3Y5.29%
EPS Next 5Y6.12%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-3.93%
Revenue Next Year0.2%
Revenue Next 2Y1.92%
Revenue Next 3Y2.47%
Revenue Next 5Y2.65%
EBIT growth 1Y-10.42%
EBIT growth 3Y-1.26%
EBIT growth 5Y2.94%
EBIT Next Year18.72%
EBIT Next 3Y9.7%
EBIT Next 5Y7.95%
FCF growth 1Y-44.14%
FCF growth 3Y224.69%
FCF growth 5Y-13.2%
OCF growth 1Y-36.1%
OCF growth 3Y74.31%
OCF growth 5Y-10.01%