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.
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
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.
KVUE has a Return On Equity of 10.50%. This is in the better half of the industry: KVUE outperforms 77.14% of its industry peers.
The Return On Invested Capital of KVUE (9.17%) is better than 68.57% of its industry peers.
KVUE had an Average Return On Invested Capital over the past 3 years of 9.78%. This 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
KVUE has a better Profit Margin (6.90%) than 77.14% of its industry peers.
KVUE's Profit Margin has declined in the last couple of years.
KVUE has a better Operating Margin (17.14%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of KVUE has remained more or less at the same level.
The Gross Margin of KVUE (58.18%) is comparable to the rest of the industry.
KVUE's Gross Margin has improved in the last couple of years.
| 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
KVUE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KVUE has about the same amout of shares outstanding than it did 1 year ago.
KVUE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 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 2.35. This is comparable to the rest of the industry: KVUE outperforms 48.57% of its industry peers.
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.
With a decent Debt to FCF ratio value of 6.03, KVUE is doing good in the industry, outperforming 68.57% of the companies in the same industry.
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 | 2.35 |
ROIC/WACC1.11
WACC8.23%
2.3 Liquidity
KVUE has a Current 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 Current ratio, with a value of 0.86, KVUE is doing worse than 77.14% of the companies in the same industry.
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.
With a Quick ratio value of 0.60, KVUE is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for KVUE have decreased by -9.84% in the last year.
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 -1.19% in the past year.
Measured over the past years, KVUE shows a small growth in Revenue. The Revenue has been growing by 1.53% on average per year.
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
KVUE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
The Revenue is expected to grow by 2.94% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.00, the valuation of KVUE can be described as rather expensive.
Based on the Price/Earnings ratio, KVUE is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of KVUE to the average of the S&P500 Index (27.28), we can say KVUE is valued slightly cheaper.
KVUE is valuated correctly with a Price/Forward Earnings ratio of 16.80.
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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
KVUE's Enterprise Value to EBITDA ratio is in line with the industry average.
KVUE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.67 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KVUE does not grow enough to justify the current Price/Earnings ratio.
KVUE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)11.13
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%.
KVUE's Dividend Yield is rather good when compared to the industry average which is at 5.83. KVUE pays more dividend than 88.57% of the companies 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 paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
147.82% of the earnings are spent on dividend by KVUE. This is not a sustainable payout ratio.
DP147.82%
EPS Next 2Y4.46%
EPS Next 3Y5.3%
20.9
-0.07 (-0.33%)
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 Cap40.13B
Analysts70.83
Price Target25.03 (19.76%)
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 | ||
| Fwd PE | 16.8 | ||
| P/S | 2.62 | ||
| P/FCF | 27.67 | ||
| P/OCF | 21.01 | ||
| P/B | 3.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.28 |
EPS(TTM)1.1
EY5.26%
EPS(NY)1.24
Fwd EY5.95%
FCF(TTM)0.76
FCFY3.61%
OCF(TTM)0.99
OCFY4.76%
SpS7.97
BVpS5.24
TBVpS-3.99
PEG (NY)11.13
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 | 2.35 |
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%