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1. Company Snapshot

1.a. Company Description

Kenvue Inc.operates as a consumer health company worldwide.The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health.


The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, and other products under the Tylenol, Nicorette, and Zyrtec brands.The Skin Health and Beauty segment provides face and body care, hair care, and sun and other care products under the Neutrogena, Aveeno, and OGX brand names.The Essential Health segment offers oral and baby, women's health, and wound care products under the Listerine, Johnson's, Band-Aid, and Stayfree brands.


The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.Kenvue Inc.operates as a subsidiary of Johnson & Johnson.

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1.b. Last Insights on KVUE

Kenvue Inc. faces negative drivers, including Tylenol-related allegations and litigation risks. The company is under scrutiny over claims linking its products to autism. Furthermore, leadership changes and slowing sales growth have impacted investor confidence. A recent decline in stock price presents an entry point for some investors, but headwinds persist. Kenvue's dividend yield remains attractive, around 5-5.5%, but execution risks loom amid economic challenges. A potential sale to Kimberly-Clark Corporation is under investigation for fairness to shareholders.

1.c. Company Highlights

2. Kenvue's Q2 Earnings Disappoint, New Leadership Commits to Turnaround

Kenvue's Q2 earnings report was a disappointment, with organic sales declining 4.2% and adjusted operating margin contracting 10 basis points to 22.7%. Adjusted diluted EPS came in at $0.29, below estimates of $0.2816. The decline in sales was driven by factors including category deceleration, soft allergy and sun care seasons, trade inventory fluctuations, and shipment timing changes.

Publication Date: Aug -08

📋 Highlights
  • Organic Sales Decline: Q2 organic sales fell 4.2% YoY, driven by category deceleration, soft allergy/sun care seasons, and inventory fluctuations.
  • Margin Pressure: Adjusted operating margin contracted 10 bps to 22.7%, with full-year guidance revising for further margin decline due to price investments and fixed cost deleverage.
  • EPS Guidance: Full-year adjusted diluted EPS projected at $1–$1.05, reflecting a low-single-digit currency drag and cautious outlook amid inflationary pressures.
  • Strategic Priorities: Leadership emphasized simplifying operations, optimizing the brand portfolio, and accelerating productivity measures to unlock shareholder value.

New Leadership Commits to Turnaround

Kirk Perry, the new interim CEO, emphasized the importance of both predictability and innovation in the company's turnaround. He stated, "We need to focus on the fundamentals, execute with excellence, and turn around our business." Perry also highlighted the need to simplify the business, focus on fewer, bigger, and better ideas, and transition to a consumer-centric mindset.

Guidance Revised, Challenges Ahead

The company revised its guidance for 2025, expecting organic sales to be down low single digits, with adjusted operating margin contracting due to strategic price investments, fixed cost deleverage, and inflationary pressures. The company is taking urgent actions to curtail discretionary spend and accelerate productivity measures.

Valuation Metrics

Kenvue's current valuation metrics suggest that the market is pricing in a turnaround. The company's P/E Ratio stands at 61.71, P/B Ratio at 4.15, and P/S Ratio at 2.76. The EV/EBITDA ratio is 16.01, and the Dividend Yield is 3.77%. The Free Cash Flow Yield is 2.04%, ROIC is 7.79%, and ROE is 6.67%. The Net Debt / EBITDA ratio stands at 2.52.

3. NewsRoom

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$HAREHOLDER ALERT: The M&A Class Action Firm Launches Legal Inquiry for the Merger—RPTX, CNBN, KMB, and KVUE

Dec -04

Source: globenewswire.com

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American Century Value Fund Q3 2025 Contributors/Detractors And Notable Trades

Dec -01

Source: seekingalpha.com

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Analyzing Nestle (OTCMKTS:NSRGY) and Kenvue (NYSE:KVUE)

Dec -01

Source: defenseworld.net

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Nestle (OTCMKTS:NSRGY) vs. Kenvue (NYSE:KVUE) Head-To-Head Comparison

Nov -30

Source: defenseworld.net

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Elfun Trusts Significantly Reduces Stake in Broadcom Inc by 60.7%

Nov -24

Source: gurufocus.com

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Bahl & Gaynor Inc. Reduces Position in Kenvue Inc. $KVUE

Nov -23

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Purchases 244,000 Shares of Kenvue Inc. $KVUE

Nov -22

Source: defenseworld.net

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American Century Mid Cap Value Fund Q3 2025 Contributors/Detractors And Notable Trades

Nov -20

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Self Care

Expected Growth: 5.2%

Growing demand for personal care products, increasing consumer awareness of health and wellness, and rising disposable income are expected to drive Kenvue’s Self Care segment growth.

Essential Health

Expected Growth: 4.5%

Kenvue Inc.'s Essential Health segment growth is driven by increasing demand for everyday health products, rising healthcare expenditure, and an aging population.

Skin Health and Beauty

Expected Growth: 4.3%

Kenvue Inc's Skin Health and Beauty products are driven by increasing consumer awareness of skin care, premiumization trends, and e-commerce growth, with a focus on natural and sustainable products.

7. Detailed Products

Neutrogena

A brand of skin and hair care products, offering a wide range of products for various skin types and concerns.

Aveeno

A brand of natural and nourishing skin care products, utilizing oatmeal and other natural ingredients.

L'Oréal Paris

A brand of beauty and personal care products, offering a wide range of makeup, skincare, and hair care products.

Maybelline

A brand of affordable and trendy makeup products, offering a wide range of cosmetics for various skin tones and types.

Garnier

A brand of natural and sustainable beauty products, offering a range of skincare, hair care, and makeup products.

CeraVe

A brand of skincare products, offering a range of moisturizers, cleansers, and sunscreens for various skin types and concerns.

La Roche-Posay

A brand of dermatologist-recommended skincare products, offering a range of products for sensitive skin and skin conditions.

Vichy

A brand of skincare products, offering a range of products that harness the power of thermal water and minerals.

8. Kenvue Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kenvue Inc. faces moderate threat from substitutes due to the presence of alternative products in the market.

Bargaining Power Of Customers

Kenvue Inc. has a large customer base, giving them significant bargaining power, which can impact the company's pricing and revenue.

Bargaining Power Of Suppliers

Kenvue Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers and minimizing the risk of supply chain disruptions.

Threat Of New Entrants

While there are some barriers to entry, Kenvue Inc. still faces a moderate threat from new entrants, particularly from innovative startups.

Intensity Of Rivalry

Kenvue Inc. operates in a highly competitive industry, with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.63%
Debt Cost 5.59%
Equity Weight 57.37%
Equity Cost 10.24%
WACC 8.26%
Leverage 74.30%

11. Quality Control: Kenvue Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kimberly-Clark

A-Score: 5.6/10

Value: 3.2

Growth: 4.4

Quality: 6.0

Yield: 8.0

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Procter & Gamble

A-Score: 5.3/10

Value: 2.8

Growth: 4.4

Quality: 7.4

Yield: 5.0

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Colgate-Palmolive

A-Score: 5.1/10

Value: 3.1

Growth: 4.9

Quality: 6.7

Yield: 5.0

Momentum: 1.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Church & Dwight Co

A-Score: 4.7/10

Value: 2.4

Growth: 5.0

Quality: 6.9

Yield: 2.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Kenvue

A-Score: 4.6/10

Value: 4.3

Growth: 3.4

Quality: 6.2

Yield: 8.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Estee Lauder

A-Score: 2.9/10

Value: 3.3

Growth: 1.7

Quality: 2.7

Yield: 2.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.96$

Current Price

16.96$

Potential

-0.00%

Expected Cash-Flows