KENVUE INC (KVUE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KVUE - US49177J1025 - Common Stock
17.64 USD
-0.16 (-0.9%)
17.75 USD
+0.11 (+0.62%)
Taking everything into account, KVUE scores 4 out of 10 in our fundamental rating. 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 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.
- KVUE had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 5.26%, KVUE is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
- KVUE has a Return On Equity of 13.48%. This is in the better half of the industry: KVUE outperforms 77.78% of its industry peers.
- KVUE has a Return On Invested Capital of 8.96%. This is in the better half of the industry: KVUE outperforms 72.22% of its industry peers.
- KVUE had an Average Return On Invested Capital over the past 3 years of 9.78%. This is below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 13.48% | ||
| ROIC | 8.96% |
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
- With an excellent Profit Margin value of 9.55%, KVUE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- KVUE's Profit Margin has declined in the last couple of years.
- KVUE has a better Operating Margin (17.85%) than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of KVUE has remained more or less at the same level.
- KVUE has a Gross Margin (58.50%) 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 | 17.85% | ||
| PM (TTM) | 9.55% | ||
| GM | 58.5% |
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
- KVUE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
- An Altman-Z score of 2.08 indicates that KVUE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- KVUE has a Altman-Z score of 2.08. This is comparable to the rest of the industry: KVUE outperforms 47.22% of its industry peers.
- KVUE has a debt to FCF ratio of 5.47. This is a neutral value as KVUE would need 5.47 years to pay back of all of its debts.
- KVUE has a better Debt to FCF ratio (5.47) than 75.00% of its industry peers.
- KVUE has a Debt/Equity ratio of 0.77. This is a neutral value indicating KVUE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.77, KVUE perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.14
WACC7.88%
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 77.78% 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.
- KVUE's Quick ratio of 0.69 is on the low side compared to the rest of the industry. KVUE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The earnings per share for KVUE have decreased strongly by -10.08% in the last year.
- 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 -2.93%.
- The Revenue has been growing slightly by 1.53% on average over the past years.
EPS 1Y (TTM)-10.08%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.93%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-3.46%
3.2 Future
- The Earnings Per Share is expected to grow by 3.28% on average over the next years.
- The Revenue is expected to grow by 1.78% on average over the next years.
EPS Next Y-7.67%
EPS Next 2Y-0.51%
EPS Next 3Y1.72%
EPS Next 5Y3.28%
Revenue Next Year-3.48%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.65%
Revenue Next 5Y1.78%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.49 indicates a correct valuation of KVUE.
- Based on the Price/Earnings ratio, KVUE is valued a bit cheaper than 75.00% of the companies in the same industry.
- KVUE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.63 indicates a correct valuation of KVUE.
- Based on the Price/Forward Earnings ratio, KVUE is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of KVUE to the average of the S&P500 Index (25.98), we can say KVUE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KVUE is valued a bit cheaper than 61.11% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KVUE indicates a somewhat cheap valuation: KVUE is cheaper than 69.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 12.46 |
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 2Y-0.51%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
- KVUE has a Yearly Dividend Yield of 4.68%, which is a nice return.
- KVUE's Dividend Yield is rather good when compared to the industry average which is at 1.90. KVUE pays more dividend than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KVUE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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 109.98% of its income as dividend. This is not a sustainable payout ratio.
DP109.98%
EPS Next 2Y-0.51%
EPS Next 3Y1.72%
KENVUE INC / KVUE FAQ
What is the fundamental rating for KVUE stock?
ChartMill assigns a fundamental rating of 4 / 10 to KVUE.
What is the valuation status for KVUE stock?
ChartMill assigns a valuation rating of 5 / 10 to KENVUE INC (KVUE). This can be considered as Fairly Valued.
What is the profitability of KVUE stock?
KENVUE INC (KVUE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of KENVUE INC (KVUE) stock?
The Price/Earnings (PE) ratio for KENVUE INC (KVUE) is 16.49 and the Price/Book (PB) ratio is 3.18.
What is the earnings growth outlook for KENVUE INC?
The Earnings per Share (EPS) of KENVUE INC (KVUE) is expected to decline by -7.67% in the next year.