KENVUE INC (KVUE) Stock Fundamental Analysis
NYSE:KVUE - New York Stock Exchange, Inc. - US49177J1025 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KVUE. KVUE was compared to 35 industry peers in the Personal Care Products industry. There are concerns on the financial health of KVUE while its profitability can be described as average. 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
In the past year KVUE was profitable.
In the past year KVUE had a positive cash flow from operations.
Of the past 5 years KVUE 4 years were profitable.
Each year in the past 5 years KVUE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.02%, KVUE is doing good in the industry, outperforming 65.71% of the companies in the same industry.
The Return On Equity of KVUE (10.50%) is better than 77.14% of its industry peers.
With a decent Return On Invested Capital value of 9.17%, KVUE is doing good in the industry, outperforming 68.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KVUE is significantly below the industry average of 15.14%.
| 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
The Profit Margin of KVUE (6.90%) is better than 77.14% of its industry peers.
KVUE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.14%, KVUE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
KVUE's Operating Margin has been stable in the last couple of years.
KVUE has a Gross Margin (58.18%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KVUE has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KVUE is creating some value.
Compared to 1 year ago, KVUE has about the same amount of shares outstanding.
The debt/assets ratio for KVUE is higher compared to a year ago.
2.2 Solvency
KVUE has an Altman-Z score of 2.36. 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.
With a Altman-Z score value of 2.36, KVUE perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
KVUE has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as KVUE would need 6.03 years to pay back of all of its debts.
KVUE has a better Debt to FCF ratio (6.03) than 68.57% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that KVUE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, KVUE is doing worse than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.11
WACC8.23%
2.3 Liquidity
A Current Ratio of 0.86 indicates that KVUE may have some problems paying its short term obligations.
With a Current ratio value of 0.86, KVUE is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
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
KVUE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.84%.
The Earnings Per Share has been decreasing by -6.76% on average over the past years.
KVUE shows a decrease in Revenue. In the last year, the revenue decreased by -1.19%.
KVUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.53% yearly.
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
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
KVUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y1.71%
EPS Next 2Y4.46%
EPS Next 3Y5.3%
EPS Next 5Y5.77%
Revenue Next Year0.21%
Revenue Next 2Y1.84%
Revenue Next 3Y2.4%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KVUE is valuated rather expensively with a Price/Earnings ratio of 19.14.
KVUE's Price/Earnings ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. KVUE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.92, which indicates a correct valuation of KVUE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KVUE indicates a somewhat cheap valuation: KVUE is cheaper than 71.43% of the companies listed in the same industry.
KVUE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
KVUE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, KVUE is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.87 | ||
| EV/EBITDA | 14.37 |
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)11.21
PEG (5Y)N/A
EPS Next 2Y4.46%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
KVUE has a Yearly Dividend Yield of 3.88%.
Compared to an average industry Dividend Yield of 5.83, 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 2.42, KVUE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 147.82% of its income as dividend. This is not a sustainable payout ratio.
DP147.82%
EPS Next 2Y4.46%
EPS Next 3Y5.3%
21.05
+0.15 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.09%
Inst Owner Change-1.17%
Ins Owners0.04%
Ins Owner Change0.18%
Market Cap40.41B
Analysts70.83
Price Target25.03 (18.91%)
Short Float %1.69%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)1.11%
PT rev (3m)2.41%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 16.92 | ||
| P/S | 2.64 | ||
| P/FCF | 27.87 | ||
| P/OCF | 21.16 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.37 |
EPS(TTM)1.1
EY5.23%
EPS(NY)1.24
Fwd EY5.91%
FCF(TTM)0.76
FCFY3.59%
OCF(TTM)0.99
OCFY4.73%
SpS7.97
BVpS5.24
TBVpS-3.99
PEG (NY)11.21
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 | 2.36 |
F-Score7
WACC8.23%
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 Y1.71%
EPS Next 2Y4.46%
EPS Next 3Y5.3%
EPS Next 5Y5.77%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-3.93%
Revenue Next Year0.21%
Revenue Next 2Y1.84%
Revenue Next 3Y2.4%
Revenue Next 5Y2.94%
EBIT growth 1Y-10.42%
EBIT growth 3Y-1.26%
EBIT growth 5Y2.94%
EBIT Next Year18.12%
EBIT Next 3Y9.66%
EBIT Next 5Y7.92%
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%