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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KVUE had positive earnings in the past year.
KVUE had a positive operating cash flow in the past year.
KVUE had positive earnings in 4 of the past 5 years.
KVUE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.23%, KVUE is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
KVUE has a Return On Equity of 13.22%. This is in the better half of the industry: KVUE outperforms 77.14% of its industry peers.
With a decent Return On Invested Capital value of 9.13%, KVUE is doing good in 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 below the industry average of 13.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.22% | ||
| ROIC | 9.13% |
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
KVUE has a Profit Margin of 9.37%. This is amongst the best in the industry. KVUE outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of KVUE has declined.
The Operating Margin of KVUE (17.79%) is better than 88.57% of its industry peers.
KVUE's Operating Margin has been stable in the last couple of years.
KVUE has a Gross Margin (58.25%) which is in line with its industry peers.
KVUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.79% | ||
| PM (TTM) | 9.37% | ||
| GM | 58.25% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KVUE is still creating some value.
The number of shares outstanding for KVUE remains at a similar level compared to 1 year ago.
KVUE has a worse debt/assets ratio than last year.
2.2 Solvency
KVUE has an Altman-Z score of 2.35. This is not the best score and indicates that KVUE is in the grey zone with still only limited risk for bankruptcy at the moment.
KVUE has a worse Altman-Z score (2.35) than 62.86% of its industry peers.
KVUE has a debt to FCF ratio of 5.27. This is a neutral value as KVUE would need 5.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.27, KVUE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that KVUE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, KVUE is doing worse than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.13
WACC8.06%
2.3 Liquidity
KVUE has a Current Ratio of 0.98. This is a bad value and indicates that KVUE is not financially healthy enough and could expect problems in meeting its short term obligations.
KVUE has a worse Current ratio (0.98) than 77.14% of its industry peers.
A Quick Ratio of 0.68 indicates that KVUE may have some problems paying its short term obligations.
KVUE has a Quick ratio of 0.68. This is in the lower half of the industry: KVUE underperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for KVUE have decreased strongly by -12.30% 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.
Looking at the last year, KVUE shows a decrease in Revenue. The Revenue has decreased by -2.16% in the last year.
The Revenue has been growing slightly by 1.53% on average over the past years.
EPS 1Y (TTM)-12.3%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-4.03%
3.2 Future
Based on estimates for the next years, KVUE will show a small growth in Earnings Per Share. The EPS will grow by 5.77% on average per year.
Based on estimates for the next years, KVUE will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y1.64%
EPS Next 2Y4.51%
EPS Next 3Y5.34%
EPS Next 5Y5.77%
Revenue Next Year-0.37%
Revenue Next 2Y1.57%
Revenue Next 3Y2.18%
Revenue Next 5Y2.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 19.81, which indicates a rather expensive current valuation of KVUE.
Based on the Price/Earnings ratio, KVUE is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.87. KVUE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.03, which indicates a rather expensive current valuation of KVUE.
Based on the Price/Forward Earnings ratio, KVUE is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.34. KVUE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KVUE.
KVUE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.92 | ||
| EV/EBITDA | 14.28 |
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)12.11
PEG (5Y)N/A
EPS Next 2Y4.51%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, KVUE has a reasonable but not impressive dividend return.
KVUE's Dividend Yield is rather good when compared to the industry average which is at 5.35. KVUE pays more dividend than 88.57% of the companies in the same industry.
KVUE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
KVUE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KVUE pays out 110.79% of its income as dividend. This is not a sustainable payout ratio.
DP110.79%
EPS Next 2Y4.51%
EPS Next 3Y5.34%
21.2
+0.14 (+0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.39%
Inst Owner Change-0.95%
Ins Owners0.04%
Ins Owner Change0.18%
Market Cap40.70B
Analysts70.83
Price Target24.19 (14.1%)
Short Float %1.9%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend0.81
Dividend Growth(5Y)N/A
DP110.79%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2%
Min EPS beat(2)0.95%
Max EPS beat(2)3.05%
EPS beat(4)3
Avg EPS beat(4)0.76%
Min EPS beat(4)-1.2%
Max EPS beat(4)3.05%
EPS beat(8)6
Avg EPS beat(8)3.75%
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)-1.51%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
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)-3.35%
PT rev (3m)-2.27%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-4.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-2.09%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 17.03 | ||
| P/S | 2.69 | ||
| P/FCF | 24.92 | ||
| P/OCF | 19.47 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.28 |
EPS(TTM)1.07
EY5.05%
EPS(NY)1.25
Fwd EY5.87%
FCF(TTM)0.85
FCFY4.01%
OCF(TTM)1.09
OCFY5.14%
SpS7.89
BVpS5.59
TBVpS-3.94
PEG (NY)12.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.22% | ||
| ROCE | 12.74% | ||
| ROIC | 9.13% | ||
| ROICexc | 9.6% | ||
| ROICexgc | 77.49% | ||
| OM | 17.79% | ||
| PM (TTM) | 9.37% | ||
| GM | 58.25% | ||
| FCFM | 10.79% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.27 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 75.08% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.31% | ||
| Profit Quality | 115.16% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.35 |
F-Score7
WACC8.06%
ROIC/WACC1.13
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)-12.3%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-9.38%
EPS Next Y1.64%
EPS Next 2Y4.51%
EPS Next 3Y5.34%
EPS Next 5Y5.77%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-4.03%
Revenue Next Year-0.37%
Revenue Next 2Y1.57%
Revenue Next 3Y2.18%
Revenue Next 5Y2.94%
EBIT growth 1Y-7.74%
EBIT growth 3Y-1.26%
EBIT growth 5Y2.94%
EBIT Next Year16.58%
EBIT Next 3Y9.49%
EBIT Next 5Y7.92%
FCF growth 1Y-35.45%
FCF growth 3Y224.69%
FCF growth 5Y-13.2%
OCF growth 1Y-28.49%
OCF growth 3Y74.31%
OCF growth 5Y-10.01%