Kenvue Inc.
Kenvue Inc. Fundamental Analysis
Kenvue Inc. (KVUE) shows weak financial fundamentals with a PE ratio of 24.70, profit margin of 9.72%, and ROE of 13.94%. The company generates $15.1B in annual revenue with weak year-over-year growth of 0.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KVUE's fundamental strength across five key dimensions:
Efficiency Score
WeakKVUE struggles to generate sufficient returns from assets.
Valuation Score
ModerateKVUE shows balanced valuation metrics.
Growth Score
WeakKVUE faces weak or negative growth trends.
Financial Health Score
ModerateKVUE shows balanced financial health with some risks.
Profitability Score
WeakKVUE struggles to sustain strong margins.
Key Financial Metrics
Is KVUE Expensive or Cheap?
P/E Ratio
KVUE trades at 24.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KVUE's PEG of 9.26 indicates potential overvaluation.
Price to Book
The market values Kenvue Inc. at 3.37 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.85 times EBITDA. This is generally considered low.
How Well Does KVUE Make Money?
Net Profit Margin
For every $100 in sales, Kenvue Inc. keeps $9.72 as profit after all expenses.
Operating Margin
Core operations generate 17.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.94 in profit for every $100 of shareholder equity.
ROA
Kenvue Inc. generates $5.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kenvue Inc. produces operating cash flow of $2.20B, showing steady but balanced cash generation.
Free Cash Flow
Kenvue Inc. generates strong free cash flow of $1.72B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
KVUE converts 4.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How KVUE Stacks Against Its Sector Peers
| Metric | KVUE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.70 | 23.01 | Neutral |
| ROE | 13.94% | 1228.00% | Weak |
| Net Margin | 9.72% | -4010.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.78 | Neutral |
| Current Ratio | 0.96 | 2.35 | Weak Liquidity |
| ROA | 5.43% | -157546.00% (disorted) | Weak |
KVUE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kenvue Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.43%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
-29.20%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-41.80%
Industry Style: Defensive, Dividend, Low Volatility
Declining