KENVUE INC (KVUE)
US49177J1025 - Common Stock
We assign a fundamental rating of 3 out of 10 to KVUE. KVUE was compared to 36 industry peers in the Personal Care Products industry. While KVUE is still in line with the averages on profitability rating, there are concerns on its financial health. KVUE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KVUE had positive earnings in the past year.
KVUE had a positive operating cash flow in the past year.
KVUE had positive earnings in 4 of the past 5 years.
In the past 5 years KVUE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KVUE (3.95%) is better than 68.57% of its industry peers.
The Return On Equity of KVUE (10.00%) is better than 71.43% of its industry peers.
KVUE has a Return On Invested Capital of 9.78%. This is in the better half of the industry: KVUE outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KVUE is below the industry average of 13.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 10% | ||
| ROIC | 9.78% |
ROA(3y)6.96%
ROA(5y)N/A
ROE(3y)11.74%
ROE(5y)N/A
ROIC(3y)9.83%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.88%, KVUE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Operating Margin, with a value of 17.84%, KVUE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
KVUE's Operating Margin has been stable in the last couple of years.
The Gross Margin of KVUE (58.13%) is comparable to the rest of the industry.
KVUE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.84% | ||
| PM (TTM) | 6.88% | ||
| GM | 58.13% |
OM growth 3Y-0.83%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.25%
GM growth 5YN/A
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 has been increased compared to 1 year ago.
Compared to 1 year ago, KVUE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 indicates that KVUE is not a great score, but indicates only limited risk for bankruptcy at the moment.
KVUE has a Altman-Z score (2.45) which is in line with its industry peers.
KVUE has a debt to FCF ratio of 6.21. This is a slightly negative value and a sign of low solvency as KVUE would need 6.21 years to pay back of all of its debts.
KVUE has a Debt to FCF ratio (6.21) which is in line with its industry peers.
KVUE has a Debt/Equity ratio of 0.75. This is a neutral value indicating KVUE is somewhat dependend on debt financing.
KVUE has a worse Debt to Equity ratio (0.75) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.12
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.00 indicates that KVUE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, KVUE is doing worse than 77.14% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that KVUE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, KVUE is doing worse than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for KVUE have decreased strongly by -41.49% in the last year.
Looking at the last year, KVUE shows a decrease in Revenue. The Revenue has decreased by -0.55% in the last year.
KVUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.20% yearly.
EPS 1Y (TTM)-41.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-9.68%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y2.2%
Revenue growth 5YN/A
Sales Q2Q%-0.41%
3.2 Future
KVUE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.04% yearly.
The Revenue is expected to grow by 2.90% on average over the next years.
EPS Next Y-11.15%
EPS Next 2Y-2.82%
EPS Next 3Y0.47%
EPS Next 5Y3.04%
Revenue Next Year0.13%
Revenue Next 2Y1.46%
Revenue Next 3Y2.15%
Revenue Next 5Y2.9%
3.3 Evolution
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
With a Price/Earnings ratio of 18.29, KVUE is valued on the expensive side.
KVUE's Price/Earnings ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. KVUE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.60, the valuation of KVUE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, KVUE is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
KVUE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KVUE indicates a somewhat cheap valuation: KVUE is cheaper than 62.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KVUE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.79 | ||
| EV/EBITDA | 14.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.82%
EPS Next 3Y0.47%
5. Dividend
5.1 Amount
KVUE has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
KVUE's Dividend Yield is rather good when compared to the industry average which is at 5.31. KVUE pays more dividend than 88.57% of the companies in the same industry.
KVUE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
KVUE does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KVUE pays out 144.92% of its income as dividend. This is not a sustainable payout ratio.
DP144.92%
EPS Next 2Y-2.82%
EPS Next 3Y0.47%
KENVUE INC
NYSE:KVUE (12/20/2024, 8:21:37 PM)
After market: 21.77 0 (0%)21.77
+0.16 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.32%
Inst Owner Change0.07%
Ins Owners0.02%
Ins Owner Change0%
Market Cap41.74B
Analysts72.73
Price Target25.07 (15.16%)
Short Float %2.21%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Dividend Growth(5Y)N/A
DP144.92%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.09%
Min EPS beat(2)0.26%
Max EPS beat(2)13.92%
EPS beat(4)4
Avg EPS beat(4)7.54%
Min EPS beat(4)0.26%
Max EPS beat(4)13.92%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-1.65%
Min Revenue beat(2)-2.77%
Max Revenue beat(2)-0.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-5%
Max Revenue beat(4)0.72%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)4.15%
PT rev (3m)11.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.38%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 17.6 | ||
| P/S | 2.7 | ||
| P/FCF | 29.79 | ||
| P/OCF | 21.67 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.25 |
EPS(TTM)1.19
EY5.47%
EPS(NY)1.24
Fwd EY5.68%
FCF(TTM)0.73
FCFY3.36%
OCF(TTM)1
OCFY4.61%
SpS8.06
BVpS5.55
TBVpS-3.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 10% | ||
| ROCE | 13.15% | ||
| ROIC | 9.78% | ||
| ROICexc | 10.28% | ||
| ROICexgc | 81.49% | ||
| OM | 17.84% | ||
| PM (TTM) | 6.88% | ||
| GM | 58.13% | ||
| FCFM | 9.06% |
ROA(3y)6.96%
ROA(5y)N/A
ROE(3y)11.74%
ROE(5y)N/A
ROIC(3y)9.83%
ROIC(5y)N/A
ROICexc(3y)10.33%
ROICexc(5y)N/A
ROICexgc(3y)82.4%
ROICexgc(5y)N/A
ROCE(3y)12.79%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y0.53%
ROICexc growth 5YN/A
OM growth 3Y-0.83%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.25%
GM growth 5YN/A
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 6.21 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 81.27% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.58% | ||
| Profit Quality | 131.67% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.45 |
F-Score6
WACC8.76%
ROIC/WACC1.12
Cap/Depr(3y)57.8%
Cap/Depr(5y)48.97%
Cap/Sales(3y)2.5%
Cap/Sales(5y)2.22%
Profit Quality(3y)89.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-9.68%
EPS Next Y-11.15%
EPS Next 2Y-2.82%
EPS Next 3Y0.47%
EPS Next 5Y3.04%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y2.2%
Revenue growth 5YN/A
Sales Q2Q%-0.41%
Revenue Next Year0.13%
Revenue Next 2Y1.46%
Revenue Next 3Y2.15%
Revenue Next 5Y2.9%
EBIT growth 1Y-6.16%
EBIT growth 3Y1.35%
EBIT growth 5YN/A
EBIT Next Year19.3%
EBIT Next 3Y10.2%
EBIT Next 5Y8.09%
FCF growth 1Y-45.08%
FCF growth 3Y-5.2%
FCF growth 5YN/A
OCF growth 1Y-33.36%
OCF growth 3Y-2.3%
OCF growth 5YN/A