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 37 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KVUE was profitable.
KVUE had a positive operating cash flow in the past year.
Of the past 5 years KVUE 4 years were profitable.
KVUE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.95%, KVUE is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
With a decent Return On Equity value of 10.00%, KVUE is doing good in the industry, outperforming 72.22% of the companies in the same industry.
KVUE has a Return On Invested Capital of 9.38%. This is in the better half of the industry: KVUE outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 10% | ||
| ROIC | 9.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KVUE has a better Profit Margin (6.88%) than 72.22% of its industry peers.
KVUE's Profit Margin has declined in the last couple of years.
KVUE has a Operating Margin of 17.84%. This is in the better half of the industry: KVUE outperforms 77.78% of its industry peers.
KVUE's Operating Margin has been stable in the last couple of years.
KVUE has a Gross Margin (58.13%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KVUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.84% | ||
| PM (TTM) | 6.88% | ||
| GM | 58.13% |
OM growth 3Y-6.02%
OM growth 5Y-1.06%
PM growth 3Y-20.95%
PM growth 5Y-7.83%
GM growth 3Y1.01%
GM growth 5Y1.54%
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.
There is no outstanding debt for KVUE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
KVUE has an Altman-Z score of 2.49. This is not the best score and indicates that KVUE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, KVUE is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of KVUE is 6.21, which is on the high side as it means it would take KVUE, 6.21 years of fcf income to pay off all of its debts.
KVUE has a Debt to FCF ratio of 6.21. This is in the better half of the industry: KVUE outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that KVUE is somewhat dependend on debt financing.
KVUE has a worse Debt to Equity ratio (0.75) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.08
WACC8.65%
2.3 Liquidity
KVUE has a Current Ratio of 1.00. This is a bad value and indicates that KVUE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of KVUE (1.00) is worse than 75.00% of its industry peers.
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 72.22% of its industry peers.
| 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 -12.98% in the last year.
The Earnings Per Share has been decreasing by -6.76% on average over the past years.
The Revenue has been growing slightly by 0.07% in the past year.
The Revenue has been growing slightly by 1.53% on average over the past years.
EPS 1Y (TTM)-12.98%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-16.13%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-0.11%
3.2 Future
Based on estimates for the next years, KVUE will show a small growth in Earnings Per Share. The EPS will grow by 7.30% on average per year.
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y3.8%
EPS Next 2Y5.42%
EPS Next 3Y5.95%
EPS Next 5Y7.3%
Revenue Next Year2.32%
Revenue Next 2Y2.88%
Revenue Next 3Y3.53%
Revenue Next 5Y3.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 20.46, the valuation of KVUE can be described as rather expensive.
Based on the Price/Earnings ratio, KVUE is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. KVUE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.71, the valuation of KVUE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KVUE indicates a somewhat cheap valuation: KVUE is cheaper than 69.44% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. KVUE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
KVUE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KVUE is cheaper than 61.11% of the companies in the same industry.
KVUE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.91 | ||
| EV/EBITDA | 14.6 |
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.
PEG (NY)5.39
PEG (5Y)N/A
EPS Next 2Y5.42%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
KVUE has a Yearly Dividend Yield of 3.82%.
KVUE's Dividend Yield is rather good when compared to the industry average which is at 4.99. KVUE pays more dividend than 88.89% of the companies in the same industry.
KVUE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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
144.92% of the earnings are spent on dividend by KVUE. This is not a sustainable payout ratio.
DP144.92%
EPS Next 2Y5.42%
EPS Next 3Y5.95%
23.32
+0.93 (+4.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners101.32%
Inst Owner Change2.07%
Ins Owners0.02%
Ins Owner Change0%
Market Cap44.71B
Analysts73.04
Price Target24.81 (6.39%)
Short Float %1.39%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly DividendN/A
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)-0.87%
PT rev (3m)3.07%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-4.36%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 19.71 | ||
| P/S | 2.89 | ||
| P/FCF | 31.91 | ||
| P/OCF | 23.21 | ||
| P/B | 4.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)1.14
EY4.89%
EPS(NY)1.18
Fwd EY5.07%
FCF(TTM)0.73
FCFY3.13%
OCF(TTM)1
OCFY4.31%
SpS8.06
BVpS5.55
TBVpS-3.93
PEG (NY)5.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 10% | ||
| ROCE | 13.15% | ||
| ROIC | 9.38% | ||
| ROICexc | 9.86% | ||
| ROICexgc | 78.16% | ||
| OM | 17.84% | ||
| PM (TTM) | 6.88% | ||
| GM | 58.13% | ||
| FCFM | 9.06% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.02%
OM growth 5Y-1.06%
PM growth 3Y-20.95%
PM growth 5Y-7.83%
GM growth 3Y1.01%
GM growth 5Y1.54%
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 | 2.49 |
F-Score6
WACC8.65%
ROIC/WACC1.08
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.98%
EPS 3Y-20.85%
EPS 5Y-6.76%
EPS Q2Q%-16.13%
EPS Next Y3.8%
EPS Next 2Y5.42%
EPS Next 3Y5.95%
EPS Next 5Y7.3%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y0.88%
Revenue growth 5Y1.53%
Sales Q2Q%-0.11%
Revenue Next Year2.32%
Revenue Next 2Y2.88%
Revenue Next 3Y3.53%
Revenue Next 5Y3.63%
EBIT growth 1Y-6.16%
EBIT growth 3Y-5.19%
EBIT growth 5Y0.46%
EBIT Next Year22.79%
EBIT Next 3Y11.87%
EBIT Next 5Y9.08%
FCF growth 1Y-42.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.7%
OCF growth 3YN/A
OCF growth 5YN/A