KENVUE INC (KVUE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KVUE - US49177J1025 - Common Stock
17.32 USD
+0.07 (+0.41%)
17.3 USD
-0.02 (-0.12%)
KVUE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KVUE had positive earnings in the past year.
In the past year KVUE had a positive cash flow from operations.
KVUE had positive earnings in 4 of the past 5 years.
KVUE had a positive operating cash flow in each of the past 5 years.
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 11.83%.
| 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
The Profit Margin of KVUE (9.55%) is better than 86.11% of its industry peers.
KVUE's Profit Margin has declined in the last couple of years.
KVUE has a Operating Margin of 17.85%. This is amongst the best in the industry. KVUE outperforms 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 of 58.50%. This is comparable to the rest of the industry: KVUE outperforms 44.44% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KVUE is creating some value.
The number of shares outstanding for KVUE remains at a similar level 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 2.06 indicates that KVUE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, KVUE is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.47, KVUE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that KVUE is somewhat dependend on debt financing.
KVUE has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.15
WACC7.82%
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.
Looking at the Current ratio, with a value of 0.98, KVUE is doing worse than 77.78% 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.
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
KVUE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.08%.
KVUE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.76% yearly.
Looking at the last year, KVUE shows a decrease in Revenue. The Revenue has decreased by -2.93% in the last 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)-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.
KVUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.78% yearly.
EPS Next Y-7.69%
EPS Next 2Y-0.53%
EPS Next 3Y1.82%
EPS Next 5Y3.28%
Revenue Next Year-3.38%
Revenue Next 2Y-0.33%
Revenue Next 3Y0.75%
Revenue Next 5Y1.78%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.19, the valuation of KVUE can be described as correct.
KVUE's Price/Earnings ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of KVUE to the average of the S&P500 Index (26.60), we can say KVUE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.35, the valuation of KVUE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KVUE indicates a somewhat cheap valuation: KVUE is cheaper than 72.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KVUE to the average of the S&P500 Index (23.23), we can say KVUE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 15.35 |
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 63.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KVUE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.25 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
KVUE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.53%
EPS Next 3Y1.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, KVUE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.06, KVUE pays a better dividend. On top of this KVUE pays more dividend than 88.89% of the companies listed in the same industry.
KVUE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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-0.53%
EPS Next 3Y1.82%
17.32
+0.07 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners98.92%
Inst Owner Change5.73%
Ins Owners0.04%
Ins Owner Change0.06%
Market Cap33.18B
Revenue(TTM)15.01B
Net Income(TTM)1.43B
Analysts68.57
Price Target19.94 (15.13%)
Short Float %3.57%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Yearly Dividend0.81
Dividend Growth(5Y)N/A
DP109.98%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.07%
Min EPS beat(2)0.62%
Max EPS beat(2)3.52%
EPS beat(4)3
Avg EPS beat(4)1.5%
Min EPS beat(4)-1.2%
Max EPS beat(4)3.52%
EPS beat(8)7
Avg EPS beat(8)4.52%
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)-3.06%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
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)0%
PT rev (3m)-13.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 15.35 | ||
| P/S | 2.21 | ||
| P/FCF | 20.25 | ||
| P/OCF | 15.53 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.23 |
EPS(TTM)1.07
EY6.18%
EPS(NY)1.13
Fwd EY6.51%
FCF(TTM)0.86
FCFY4.94%
OCF(TTM)1.11
OCFY6.44%
SpS7.83
BVpS5.55
TBVpS-3.93
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 13.48% | ||
| ROCE | 12.7% | ||
| ROIC | 8.96% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 67.42% | ||
| OM | 17.85% | ||
| PM (TTM) | 9.55% | ||
| GM | 58.5% | ||
| FCFM | 10.92% |
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%
ROICexgc growth 3Y3.71%
ROICexgc 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 87.35% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.76% | ||
| Profit Quality | 114.38% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.06 |
F-Score7
WACC7.82%
ROIC/WACC1.15
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)-10.08%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%0%
EPS Next Y-7.69%
EPS Next 2Y-0.53%
EPS Next 3Y1.82%
EPS Next 5Y3.28%
Revenue 1Y (TTM)-2.93%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-3.46%
Revenue Next Year-3.38%
Revenue Next 2Y-0.33%
Revenue Next 3Y0.75%
Revenue Next 5Y1.78%
EBIT growth 1Y-2.86%
EBIT growth 3Y-1.26%
EBIT growth 5Y2.94%
EBIT Next Year7.34%
EBIT Next 3Y6.45%
EBIT Next 5Y6.39%
FCF growth 1Y-33.29%
FCF growth 3Y224.69%
FCF growth 5Y-13.2%
OCF growth 1Y-25.37%
OCF growth 3Y74.31%
OCF growth 5Y-10.01%
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 16.19 and the Price/Book (PB) ratio is 3.12.
What is the earnings growth outlook for KENVUE INC?
The Earnings per Share (EPS) of KENVUE INC (KVUE) is expected to decline by -7.69% in the next year.