KENVUE INC (KVUE) Stock Fundamental Analysis
NYSE:KVUE - US49177J1025 - Common Stock
18.62 USD
-1.92 (-9.35%)
18.6 USD
-0.02 (-0.11%)
We assign a fundamental rating of 4 out of 10 to KVUE. KVUE was compared to 36 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 is valued correctly, but it does not seem to be growing.
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 5.23% is fine compared to the rest of the industry. KVUE outperforms 63.89% of its industry peers.
Looking at the Return On Equity, with a value of 13.22%, KVUE belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.93%, KVUE is in the better half of the industry, outperforming 69.44% 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 12.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.22% | ||
| ROIC | 8.93% |
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 9.37%, KVUE belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
In the last couple of years the Profit Margin of KVUE has declined.
Looking at the Operating Margin, with a value of 17.39%, KVUE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
KVUE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 58.25%, KVUE is in line with its industry, outperforming 47.22% of the companies in the same industry.
KVUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.39% | ||
| 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.
The debt/assets ratio for KVUE is higher compared to a year ago.
2.2 Solvency
KVUE has an Altman-Z score of 2.31. 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's Altman-Z score of 2.31 is in line compared to the rest of the industry. KVUE outperforms 44.44% 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.
KVUE has a Debt to FCF ratio of 5.27. This is in the better half of the industry: KVUE outperforms 69.44% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that KVUE is somewhat dependend on debt financing.
KVUE has a worse Debt to Equity ratio (0.73) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.13
WACC7.87%
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.
The Current ratio of KVUE (0.98) is worse than 77.78% of its industry peers.
KVUE has a Quick 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.
Looking at the Quick ratio, with a value of 0.68, KVUE is doing worse than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
KVUE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.30%.
KVUE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.76% yearly.
The Revenue has decreased by -2.16% in the past year.
KVUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.53% yearly.
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 3.95% on average per year.
The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y-6.74%
EPS Next 2Y0.83%
EPS Next 3Y2.62%
EPS Next 5Y3.95%
Revenue Next Year-2.56%
Revenue Next 2Y0.27%
Revenue Next 3Y1.16%
Revenue Next 5Y1.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.40.
KVUE's Price/Earnings ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. KVUE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.07, 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 72.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KVUE to the average of the S&P500 Index (22.69), we can say KVUE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.4 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
KVUE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 63.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KVUE is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
The decent profitability rating of KVUE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.83%
EPS Next 3Y2.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.04%, KVUE is a good candidate for dividend investing.
KVUE's Dividend Yield is rather good when compared to the industry average which is at 5.54. KVUE pays more dividend than 88.89% of the companies in the same industry.
KVUE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
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 2Y0.83%
EPS Next 3Y2.62%
18.62
-1.92 (-9.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.39%
Inst Owner Change-7.62%
Ins Owners0.04%
Ins Owner Change0.03%
Market Cap35.73B
Analysts70.83
Price Target23.29 (25.08%)
Short Float %2.31%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
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)1.84%
Min EPS beat(2)0.62%
Max EPS beat(2)3.05%
EPS beat(4)3
Avg EPS beat(4)0.68%
Min EPS beat(4)-1.2%
Max EPS beat(4)3.05%
EPS beat(8)6
Avg EPS beat(8)3.71%
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)-1.61%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.15%
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)-4.61%
PT rev (3m)-5.94%
EPS NQ rev (1m)-15.88%
EPS NQ rev (3m)-17.47%
EPS NY rev (1m)-8.24%
EPS NY rev (3m)-8.68%
Revenue NQ rev (1m)-4.6%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)-2.2%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.4 | ||
| Fwd PE | 16.07 | ||
| P/S | 2.36 | ||
| P/FCF | 21.88 | ||
| P/OCF | 17.09 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.23 |
EPS(TTM)1.07
EY5.75%
EPS(NY)1.16
Fwd EY6.22%
FCF(TTM)0.85
FCFY4.57%
OCF(TTM)1.09
OCFY5.85%
SpS7.89
BVpS5.59
TBVpS-3.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.22% | ||
| ROCE | 12.45% | ||
| ROIC | 8.93% | ||
| ROICexc | 9.38% | ||
| ROICexgc | 75.77% | ||
| OM | 17.39% | ||
| 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 | 2.42 | ||
| Cap/Depr | 75.08% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.48% | ||
| Profit Quality | 115.16% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.31 |
F-Score7
WACC7.87%
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 Y-6.74%
EPS Next 2Y0.83%
EPS Next 3Y2.62%
EPS Next 5Y3.95%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-4.03%
Revenue Next Year-2.56%
Revenue Next 2Y0.27%
Revenue Next 3Y1.16%
Revenue Next 5Y1.93%
EBIT growth 1Y-9.8%
EBIT growth 3Y-1.26%
EBIT growth 5Y2.94%
EBIT Next Year16.58%
EBIT Next 3Y9.49%
EBIT Next 5Y6.46%
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%