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OLDER Analysis Report
Aug 24, 2026
44 days ago · 100% complete
This report is 44 days old — newer filings and price moves since then are not reflected.
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Kenvue Inc. (KVUE) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-10-08): Designation Low · Gem Score -27 (−100…+100 Quality+Value blend) · Quality -13 · Value -37 · Sentiment -26 (timing only, not weighted) · Composite fair value $16.17 vs $19.06 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysis — the core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Kenvue Inc.

KVUE NYSE
Consumer Defensive · Household & Personal Products
Summit, NJ 07901, United States kenvue.com Updated Aug 24, 4:24am
Price
$19.06
Market Cap
$36.6B
Employees
21,780
Beta
0.43
Avg Volume
20,982,920
Last Dividend
$0.83
CEO
Mr. Kirk L. Perry

Kenvue Inc. is a global consumer health company focused on over-the-counter medicines, personal care, and wellness products for everyday use. Headquartered in Summit, New Jersey, Kenvue develops and markets a broad portfolio of well-known brands across categories such as pain relief, allergy care, cough and cold, digestive health, baby care, skincare, and oral care. Its products include widely recognized names such as Tylenol, Zyrtec, Benadryl, Neutrogena, Aveeno, Listerine, Johnson’s, Band-Aid, and Visine, which are distributed through pharmacies, mass retailers, e-commerce platforms, and healthcare channels worldwide. Kenvue’s business is organized around meeting consumer needs in self-care and daily health routines, offering non-prescription solutions that support hygiene, symptom relief, and skin and hair health. By combining brand recognition, large-scale distribution, and consumer insight-driven product development, Kenvue plays a significant role in the consumer health market, serving households, caregivers, and professionals across multiple regions.

Runs with full report Generated: Aug 24, 2026 6:39am
Price Overview
Price at report time
$19.06
as of Aug 24, 6:30am (44d ago)
Change · Aug 24
+0.13 (+0.69%)
Day Range
$18.87 – $19.16
52-Week Range
$14.02 – $21.78
50-Day MA
$19.02
200-Day MA
$17.83
Volume
13,572,600.00
Right now · live
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Members see the real-time price and the move since this report (over 44d).
Share Structure
Outstanding 1,919,934,784.00
Float 1,918,142,007.00
Free Float 99.9%
High free float — 99.9% of shares trade freely, ~0.1% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 24, 2026 6:50am (44d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 24, 2026 6:50am (44d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 24, 2026 6:36am
P/E · trailing (TTM) (Price per dollar of earnings over the past year — not a run-rate or forward P/E)
HEX
Stock Price / EPS (Diluted)
25.08
Stock Price: $19.06
EPS (Diluted): 0.76
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
3.41
Stock Price: $19.06
Total Equity: $10.77B
Shares: 1,924,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
12.43
Market Cap: $36.61B
Total Debt: $1.45B
Cash: $1.06B
EBITDA: $2.97B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$36.9B
Market Cap: $36.61B
Total Debt: $1.45B
Cash: $1.06B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
58.1%
Gross Profit: $8.79B
Revenue: $15.12B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
16.0%
Operating Income: $2.41B
Revenue: $15.12B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
9.7%
Net Income: $1.47B
Revenue: $15.12B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
13.7%
Net Income: $1.47B
Total Equity: $10.77B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
15.9%
Operating Income: $2.41B
Tax Rate: 26.5%
Equity: $10.77B
Total Debt: $1.45B
Cash: $1.06B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
0.96
Current Assets: $5.70B
Current Liabilities: $5.95B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.13
Short-Term Debt: $1.45B
Long-Term Debt: $0.00
Total Debt: $1.45B
Total Equity: $10.77B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$7.86
Revenue: $15.12B
Shares: 1,924,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$5.60
Total Equity: $10.77B
Shares: 1,924,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$0.90
Operating CF: $2.20B
CapEx: -$475.00M
Shares: 1,924,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
4.4%
Last Dividend: $0.83
Stock Price: $19.06
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
107.6%
Dividends Paid: -$1.58B
Net Income: $1.47B
Industry Benchmarks
Last run: Aug 24, 2026 6:36am
Compares KVUE against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 24, 2026 6:50am (44d ago)
Metric 2022 2023 2023 2024 2025
Revenue $15.1B $15.0B $15.4B $15.5B $15.1B
Cost of Revenue $6.6B $6.7B $6.8B $6.5B $6.3B
Gross Profit $8.4B $8.3B $8.6B $9.0B $8.8B
Operating Expenses $5.5B $5.6B $6.1B $7.1B $6.4B
Operating Income $2.9B $2.7B $2.5B $1.8B $2.4B
Net Income $2.1B $2.1B $1.7B $1.0B $1.5B
EBITDA $3.7B $3.3B $3.1B $2.5B $3.0B
EPS $1.21 $1.20 $0.90 $0.54 $0.77
EPS (Diluted) $1.21 $1.20 $0.90 $0.54 $0.76
Balance Sheet (Annual)
Last updated: Aug 24, 2026 6:30am (44d ago)
Metric 2023 2023 2023 2024 2025
Cash & Equivalents $1.2B $1.2B $1.4B $1.1B $1.1B
Total Current Assets $5.9B — $6.1B $5.5B $5.7B
Total Assets $27.3B — $27.9B $25.6B $27.1B
Current Liabilities $3.9B — $5.5B $5.7B $5.9B
Long-Term Debt $0 — $7.7B — —
Total Liabilities $7.3B — $16.6B $15.9B $16.3B
Total Equity $20.0B — $11.2B $9.7B $10.8B
Retained Earnings $0 — $429.0M -$93.0M -$204.0M
Cash Flow (Annual)
Last updated: Aug 24, 2026 6:50am (44d ago)
Metric 2022 2023 2023 2024 2025
Operating Cash Flow $334.0M $2.5B $3.2B $1.8B $2.2B
Capital Expenditure -$295.0M -$375.0M -$469.0M -$434.0M -$475.0M
Free Cash Flow $39.0M $2.2B $2.7B $1.3B $1.7B
Acquisitions (net) — — — — —
Net Debt Issued / (Repaid) — — — — —
Dividends Paid $0 $0 -$766.0M -$1.6B -$1.6B
Stock Buybacks — $0 -$7.0M -$235.0M -$197.0M
Net Change in Cash $122.0M $491.0M $151.0M -$312.0M -$8.0M
Growth Trends (YoY %)
Last updated: Aug 24, 2026 6:50am (44d ago)
Metric 2023 2023 2024 2025
Revenue Growth -0.7% +3.3% +0.1% -2.1%
Gross Profit Growth -1.6% +4.3% +3.7% -1.9%
Operating Income Growth -8.4% -6.1% -26.7% +31.1%
Net Income Growth -0.7% -19.4% -38.1% +42.7%
EBITDA Growth -9.1% -5.4% -21.5% +20.6%
Dividend History (Last 20)
Last updated: Aug 19, 2026 12:14pm (49d ago)
Date Dividend Declaration Record Payment
2026-08-12 $0.21 — — —
2026-05-13 $0.21 — — —
2026-02-11 $0.21 — — —
2025-11-12 $0.21 — — —
2025-08-13 $0.21 — — —
2025-05-14 $0.21 — — —
2025-02-12 $0.21 — — —
2024-11-13 $0.21 — — —
2024-08-14 $0.21 — — —
2024-05-07 $0.20 — — —
2024-02-13 $0.20 — — —
2023-11-07 $0.20 — — —
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-10-05 02:00
-0.6 : 1 +1σ upside vs −1σ downside, from this company's own quarterly history
A +1σ run of quarters pays -31%; a −1σ run costs 56%. Ratio -0.6:1 (μ 1.0%, σ 3.5% , 14 pairs).
Older method (repeat-worst-quarter): -0.2 : 1
CaseGrowthMarginFair valuevs price ($19.06)
Bull — recovery +2% 17.3% $17.24 -10%
Base — stabilizes +2% 15.0% $14.75 -23%
Bear — keeps slipping +1% 12.8% $12.37 -35%
Stress — last quarter repeats -3% 10.7% $9.16 -52%
Upside — a +1σ run of quarters (v2) +5% 11.8% $13.10 -31%
Stress — a −1σ run of quarters (v2) -3% 9.5% $8.46 -56%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2025-09-28) — growth stays at -3.5% and margins bend by the same profit-vs-revenue ratio (×1.00). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Jun 2026, Mar 2026 against the same quarters one year earlier and found revenue +3.8% · operating income +17.3% · net income +25.3% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Sep 28, 2025 (revenue -3.5%, operating income -3.8% YoY) — not the average. Data measured through Jun 28, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for KVUE — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-24 07:00

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Holding Kenvue's top line has stabilized at low-single-digit growth with real margin self-help driving outsized earnings gains, but the underlying categories are mature and slowing — flat-to-modestly-up earnings power, not a growth story. conf 6/10
Inline with category Category growing · Category is growing but slowly and decelerating: industry CAGR 2.3%, category median recent growth 1.5%, sector phase 'slowdown'. Kenvue's multi-year record (-1.0% revenue CAGR, recent annual -2.1%) sat clearly BELOW that — a multi-year share-loss shape concentrated in skin health/self care. The two newest matched quarters at +3.8% put it above category for the first time in the record, which reads as stabilization/recapture rather than proven share gain.
Next 2 quarters
Holding
The margin program is still in-flight, so earnings should keep outrunning revenue, but the revenue comp gets harder and the newest EPS print already missed by 3% after a beat streak. Expect low-single-digit revenue with double-digit-ish earnings growth decaying as comps normalize — flat-to-modest, not a turn in either direction.
≈ inline with expectations
Year 1
Holding
Full-year shape: revenue roughly 1-3% (price-led, skin-health recovery the swing factor), earnings up more on the cost program but at a decaying rate as savings annualize. Category tide contributes ~1.5%, so there is no mechanism for the year to inflect upward, and the habitual demand base makes a downside break unlikely absent a trust shock.
≈ inline with expectations
Years 2–3
Holding
Structural earnings power holds rather than compounds. The categories grow ~1.5-2.3% and are decelerating; self-help savings are finite and cannot be re-harvested indefinitely; cash conversion (FCF CAGR -20.1%) has to normalize before reinvestment can drive share gain. The tail risk on the acetaminophen franchise is the only realistic path to Shrinking, and the self-care demographic tailwind is the only realistic path to Growing — they roughly offset at this confidence level.
≈ inline with expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
62 Cost/margin self-help converting flat revenue into earnings growth — Matched-quarter YoY shows revenue +3.8% against operating income +17.3% and net income +25.3% — roughly 13pp of operating leverage. That gap is program-driven (supply-chain, SKU and overhead rationalization plus mix), not volume-driven, and such programs typically deliver for 4-8 more quarters before annualizing out. It is the single reason earnings can grow while the categories do not.
43 Habitual, non-discretionary demand base — Pain relief, allergy, oral care, wound care and baby are replenishment purchases bought by habit and often on pharmacist/HCP recommendation. Volumes are largely insensitive to the macro headwind flagged in the backdrop, which is why revenue volatility is only 0.011 and quarterly trend reads 'accelerating' off a shallow base. This underwrites the Holding floor rather than any upside.
37 Skin health / Neutrogena-Aveeno recovery leverage — The prior multi-year revenue CAGR of -1.0% was disproportionately a self-care/skin-health execution problem, not a category problem — the category itself compounded ~2.3%. Reversion of that one segment toward category growth is the highest-probability source of the recent +3.8% print continuing, and it is company-controllable (media spend, innovation cadence, shelf resets).
26 Pricing/mix in branded OTC — Brand equity in acetaminophen, antihistamine and antiseptic lines supports low-single-digit price realization that alone roughly matches category growth of 1.5%, meaning volume needs only to be flat for revenue to hold.
Growth risks
58 Acetaminophen safety/reputational and litigation overhang — Tylenol is the franchise anchor and it sits under public safety scrutiny and litigation exposure. This is the one risk that can convert Holding into Shrinking: consumer-health brands lose trust discontinuously, and switching to store-brand acetaminophen or ibuprofen is costless for the shopper. No evidence yet of structural volume loss in the measured data, but the tail is fat and non-diversifiable.
49 Private-label trade-down in exactly these aisles — OTC analgesics, antihistamines and baby wash are the most heavily private-labeled shelves in retail, and retailers are actively expanding own-brand penetration. With a macro headwind backdrop, the price gap between branded and store brand is the live battleground — this caps volume growth and forces reinvestment of the margin savings back into promotion.
41 Cash conversion deterioration — FCF CAGR of -20.1% against an earnings CAGR of -6.0% says reported profit improvement has not been converting to cash — working capital, separation/standalone costs, or restructuring cash outlays. Until that converges, the margin story is partly accounting-shaped and the reinvestment capacity for brand-building is thinner than the P&L implies.
43 Category is mature AND now slowing — Industry revenue CAGR of 2.3% with a sector demand score of -1 and phase 'slowdown' means the tide provides almost nothing. Any growth must be taken from competitors or from price, and the historical record (-1.0% revenue CAGR into a +2.3% category) shows this company has not reliably done that.
23 Cough/cold and allergy seasonality distorting the read — Two matched quarters of +3.8% is a thin base for a directional call in a business where respiratory season timing can swing a quarter by several points. The latest EPS print missed by 3% after a run of beats, consistent with the easy-comp phase ending.
The world is moving toward self-directed health — more OTC self-treatment, pharmacist-led recommendation, aging populations, and consumers substituting home care for clinic visits. That is structurally supportive of Kenvue's shelf. Working against it: shopper willingness to buy store-brand actives has never been higher, retailers are the ones deciding shelf economics, and public scrutiny of long-trusted actives (acetaminophen especially) is rising in a way that can reprice trust faster than any marketing budget can rebuild it. Digital/e-commerce shifts the fight from brand recall to search-and-review, where private label competes on equal footing. Net: the demand pool is intact and slowly growing; the pricing umbrella over branded OTC is the thing genuinely at risk over years, not the volume.
Growth position composite -11
ShrinkingStallingHoldingGrowingAccelerating
50Next 2 quarters · Holding
50Year 1 · Holding
50Years 2–3 · Holding
-11Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-24 06:49:37
Verdict Modestly undervalued at $19 — H1'26 margin/revenue inflection is being underweighted by the models; fair value $22-24 if the 12% net margin holds, with a defensible 4.4% yield in the meantime.

The raw quarterly tape tells a more constructive story than the annual CAGR suggests. Sequential revenue has stepped up cleanly: $3.66B (Q4'24) → $3.74B → $3.84B → $3.76B → $3.78B → $3.91B → $3.96B, with the two most recent quarters clocking ~$7.87B combined vs $7.40B in the year-ago pair — call it +6.4% first-half YoY, not the -2.1% the trailing momentum stat implies. Net margin has stabilized in the 10-12% band after the Q4'24 trough of 8%, and the last two quarters printed 12.1% and 11.5% — the best margin pair in the disclosed history. Whoever computed "recent_revenue_yoy: -2.1%" is either reading Q4'25 vs Q4'24 (a soft cold/flu comp) or averaging stale periods; the current-quarter trajectory is inflecting positively, and the synthesis engine seems to have missed this.

That said, the annual picture the bears cite is real: 2025 revenue of $15.12B is *below* 2023's $15.44B and roughly flat with 2022's $15.05B — four years of no top-line growth. FCF fell from ~$2.7B implied peak to $1.72B (-20% CAGR), and the 107.5% payout ratio means the 4.4% dividend is being funded partly out of balance sheet slack, not earnings. Debt/equity of 0.135 and only $1.06B cash against $1.45B debt give some room, but not indefinitely — either earnings recover to ~$1.75-2.0B (covering the ~$1.6B dividend) or the payout gets trimmed. The Q1-Q2 2026 earnings run-rate of ~$1.86B annualized actually gets them there, which materially changes the dividend-cut thesis the bears are leaning on.

The prior models are directionally reasonable but internally inconsistent. Pre-flight calls it a "show-me story" at 25x depressed earnings; synthesis lands at $17.89 fair value (-6% downside); market-forces says "premium it hasn't earned"; narrative layer says "priced correctly on fundamentals." These don't fully cohere — if the narrative engine is right that fundamentals anchor price, then the -6% synthesis gap is noise, not signal. My contrarian read: the 25x PE is on trailing depressed earnings ($1.47B NI in 2025); on the H1'26 annualized run-rate of ~$1.86B, forward PE drops to ~19.7x, and EV/EBITDA around 10-11x — that's not premium for a stable CPG with 58% gross margins and a durable brand portfolio. Colgate trades ~22x, P&G ~24x, Church & Dwight ~26x. Kenvue at 19-20x forward with margin recovery underway is closer to cheap-relative than expensive.

The contrarian bear case worth taking seriously: 2024's revenue decline and 2025 flat-lining could reflect real category erosion (Tylenol autism-lawsuit overhang, private-label incursion in skincare, GLP-1s suppressing OTC demand), and the Q1-Q2'26 acceleration could be one-off pricing or Kenvue-specific product cycles rather than a durable inflection. Insider activity is unhelpful noise — awards and one small 3,700-share sale tell you nothing. Roe of 13.7% and ROIC of 15.9% are respectable but not distinguished for a staples name. I'd want to see Q3'26 confirm the trend before pounding the table. Still, at $19.06 with a 4.4% yield that's likely defensible on the recovering earnings base, and a forward multiple that's below staples peers, I disagree with the synthesis "fair value" verdict — this looks modestly undervalued, with fair value closer to $22-24 if the 12% margin holds and revenue growth stays positive. I'd dissent on direction but not violently; conviction is medium because the two-quarter improvement needs one more print to be trend rather than noise.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-24 06:49:55
Verdict Slightly overvalued at $19.06 — the recent earnings rebound is real, but flat multi-year sales and a stretched payout argue fair value is closer to $17.

Kenvue looks like a decent business priced like a better one. The core fact pattern is stagnation: 2025 revenue was $15.12B, down from $15.46B in 2024 and barely different from $15.44B in 2023 or $15.05B in 2022. On an eight-quarter view, quarterly sales have lived in a narrow $3.66B-$3.96B band. There is some recent improvement — the June 2026 quarter at $3.96B was up about 3% from $3.84B a year earlier, and March 2026 at $3.91B was up about 5% from $3.74B — but that only repairs part of a multi-year flatline. Meanwhile earnings have been more cyclical than a staples multiple usually deserves: annual net income fell from $2.08B in 2022 to $1.03B in 2024 before rebounding to $1.47B in 2025. The business is not broken, but the market is paying 25.1x earnings and 12.4x EV/EBITDA for a company whose revenue CAGR is negative and whose earnings power still sits well below where it was three years ago.

The more favorable reading is that 2025 may have marked an earnings trough and the margin rebuild is real. Operating income improved from $1.84B in 2024 to $2.41B in 2025 despite lower revenue, and quarterly net margins have stepped up from 8.0%-8.7% in late 2024/early 2025 to 11.5%-12.1% in the first half of 2026. If I annualize the last two quarters, earnings power is closer to $1.86B-$1.90B than the reported $1.47B for 2025, which would bring the effective P/E down into the high teens or around 20x. That is not crazy for a defensive branded consumer health company with 58.1% gross margin, 15.9% operating margin, 15.9% ROIC, modest balance-sheet leverage of just $1.45B debt against $1.06B cash, and $1.72B of free cash flow. But even giving credit for that recovery, you are still not buying growth; you are buying stabilization, cost takeout, and a 4.4% dividend yield.

That dividend is exactly where I think the market is being too charitable. A 107.6% payout ratio on annual earnings is a yellow flag even if free cash flow covers it better than EPS suggests. With $1.72B of FCF on a $36.6B market cap, the FCF yield is only about 4.7%, barely above the dividend yield, leaving little room for both generous distributions and meaningful reinvestment unless margins keep improving. That is a thin spread for a company with a current ratio below 1.0 and no meaningful top-line growth engine. The stock is not egregiously expensive in absolute terms, but the burden of proof is wrong: at $19.06, investors are already capitalizing a successful standalone transition and a durable earnings recovery, while the evidence so far is mostly “less bad” rather than “structurally better.” I land slightly below the current price, with fair value more like $16.50-$18 depending on whether you underwrite roughly $1.6B or closer to $1.9B of sustainable net income.

The best case against my caution is straightforward: this is exactly the sort of stock where screens can mislead because they anchor on depressed trough earnings. If the June and March 2026 quarters are the new run rate, then annualized revenue is approaching $15.7B-$15.8B and annualized net income is near $1.9B, which would make today’s valuation much more reasonable for a recession-resistant, brand-heavy defensive name. Gross margin above 58% and improving net margin suggest genuine pricing power and cost discipline, not just accounting noise. The balance sheet is also stronger than many staples peers, with net debt of only about $390M, so there is little financial risk. On that view, 19x-20x normalized earnings plus a 4.4% yield is not expensive; it is a fair entry point for a stable compounder that will never look optically cheap.

What would change my mind is evidence that the recent margin recovery is accompanied by clean volume-backed growth, not just mix and cost savings. If the next two quarters can hold revenue above $3.9B and keep net margin at 11%+, that would support a sustainable earnings base near $1.8B-$1.9B and justify the stock around or above $19. Conversely, if revenue slips back toward the $3.7B-$3.8B range or margins retreat into the 8%-9% zone, the current multiple is too high and the shares should trade closer to the mid-teens. The key is simple: this stock needs to prove it is a recovering franchise, not merely a flat franchise wearing a defensive multiple.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-24 06:50:40
Verdict Slightly overvalued at $19.06 vs ~$17.50–18.50 fair value; solid FCF/yield but 25× PE and 108% payout on −1% revenue CAGR leave little margin of safety

Kenvue’s numbers describe a post-spin cash cow that has arrested the worst of its earnings trough but has not yet earned a growth multiple. Annual revenue slipped from $15.46B in 2024 to $15.12B in 2025 (−2.2%), extending a multi-year pattern of essentially flat-to-down top-line (revenue CAGR −1%). Net income recovered to $1.47B from the depressed $1.03B print in 2024, and the last two reported quarters show sequential strength—$3.91B and $3.96B in sales with net margins of 12.1% and 11.5%—but absolute earnings remain well below the $2.06–2.08B generated in 2021–22. Free cash flow of $1.72B on $2.20B operating cash flow is the cleanest quality signal in the file; gross margin holds at a respectable 58%, ROIC is 15.9%, and the balance sheet is lightly levered ($1.45B debt against $10.77B equity, D/E 0.135). The market is paying 25× trailing earnings, 12.4× EV/EBITDA and 2.42× sales for a business whose volume is not growing and whose dividend payout sits at 108% of net income. That is a premium staples multiple on a no-growth earnings base, only partially justified by the 4.4% yield.

The story the models under-weight is the payout and the structural top-line. A 107% payout ratio means the $4.4% yield is being funded partly by balance-sheet capacity or by treating FCF as permanent rather than by covered earnings; FCF covers the dividend more comfortably than NI, but the gap is a yellow flag if earnings re-compress. Recent revenue “acceleration” is still only a bounce from $3.74–3.78B quarters back toward the mid-$3.9Bs—hardly evidence of brand re-acceleration in OTC pain, skin, or oral care. Operating income of $2.41B in 2025 looks better than 2024’s $1.84B, yet it remains below the $2.51–2.92B range of the J&J-era years, consistent with stranded-cost and scale friction after the 2023 separation. At $19.06 the stock sits roughly 6% above the composite fair-value band near $18; that gap is small in absolute dollars but meaningful when the underlying business is shrinking 1–2% a year and the multiple already prices successful cost takeout.

The strongest contrary case is that 2025 was an inflection year, not a dead-cat bounce. Earnings jumped 43% year-over-year off the trough, quarterly net margins have climbed into the low double digits, and FCF conversion remains excellent. Low leverage and a current ratio near 1.0 leave room to keep returning cash while management finishes the standalone cost program. Consumer-health brands of Tylenol/Neutrogena/Listerine vintage historically defend price in inflation and hold shelf space; if organic sales simply stabilize at zero rather than −2% and operating margin grinds toward the high teens, a mid-teens free-cash-flow yield on the enterprise and a covered 4%+ dividend become a perfectly rational holding for income allocators. In that framing, 12× EV/EBITDA is not egregious for defensive staples, and the “show-me” discount the pre-flight note describes has already mostly closed.

I would flip to a constructive stance if the next two print quarters deliver positive organic sales growth (not just easy comparisons) above +1–2% with net margins sustaining above 11%, and if the trailing payout ratio falls below ~85% on higher earnings rather than a dividend cut. A clear path to sub-12× forward EV/EBITDA on rising EBIT, or a sustained FCF run-rate above $2B that fully covers an intact dividend, would also re-rate the equity from slightly rich to fairly valued. Until one of those arrives, the stock looks like a high-quality income vehicle priced ~5–8% ahead of its fundamental anchor.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 4.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 8.0
undervalued · conviction 3/5 · Δ +4.0 vs panel · self: 6.0
GPT gpt-5.4 2.0
overvalued · conviction 3/5 · Δ -2.0 vs panel · self: 4.0
Grok grok-4.5 2.0
overvalued · conviction 3/5 · Δ -2.0 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-24 07:01:56
Delvantic - Cairn AI
Pass at $19 - watchlist for a dip 7/10
KVUE is a Solid-but-stagnating staples name trading right at fair value with a soft-headwind tape - no edge here, wait for the mid-15s.
The cruxWhether the H1'26 margin/revenue inflection materializes or the flat-revenue-plus-dilution pattern persists - that single fork decides if $19 is fair or expensive.
Forensic checks Derived mechanically from KVUE's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionModerate Dilution
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
-13
Solid
edge √Σ 85 · risk √Σ 98 · conf 6/10

Kenvue is a recently spun-out consumer health company (Tylenol, Neutrogena, Listerine parent) showing the signature profile of a mature staples earner: revenue essentially flat at ~$15B across four years (15.05, 14.95/15.44, 15.46, 15.12), gross margins actually expanding modestly from 55.9% to 58.1%, and FCF running $1.72B on the trailing print with OCF/NI of 1.3x. Accruals are negative (-1.2% of assets), Beneish M at -2.47 shows no manipulation flags, and cash conversion is strong — the reported earnings appear real. Earnings quality is a genuine strength.

Strengths 3
m60
Clean earnings quality
OCF/NI 1.3x, accruals -1.2% of assets, Beneish M -2.47. Reported profits convert to cash and show no mechanical manipulation signals.
m45
Gross margin resilience
GM% expanded from 55.9% (2022) to 58.1% (2025) despite flat revenue, suggesting pricing power and mix discipline typical of branded consumer health.
m40
Durable FCF generation
$1.72B FCF on ~$15B revenue (~11% FCF margin) with a stable branded portfolio — self-funding without needing capital markets.
Concerns 5
m55
Operating margin compression
OpM% slid from 19.4% (2022) to 11.9% (2024) before partial recovery to 16.0% (2025). Net income fell from $2.08B to $1.47B over the period — profitability is trending the wrong way overall.
m50
Stagnant top line
Revenue essentially unchanged 2022-2025 ($15.05B to $15.12B). No unit or price-driven growth engine visible in the data.
m45
Dilution outpacing buybacks
Diluted shares grew from 1.72B to 1.92B (11.6% cumulative, ~2.9% CAGR). Buybacks recover only 51.3% of SBC — per-share value is leaking.
m40
Net debt with near-term refi
Net cash -$391M; short-term debt $1.45B exceeds $1.06B liquid cash. Altman Z 2.18 sits in the grey zone. Balance sheet is a constraint, not a cushion.
m20
Insider tape is neutral-to-soft
Zero open-market buys, two small sales ($747K). Mostly awards and one option exercise — no conviction signal, no alarming distribution either.
This looks like a textbook mature staples business that has not yet earned its post-spin stripes. The brand portfolio and cash conversion are real strengths, and the earnings-quality mechanics are clean. But the operating story is stagnation with margin slippage, and management is diluting shareholders faster than they are buying back. It is a solid, defensible business, not a great one — I would grade it in the low-50s. The pieces to become 'sound and improving' are there, but the data does not yet show them arriving.
Verify before trusting this (5)
  • Cause of OpM decline from 19.4% to 11.9% in 2024 — restructuring, one-time separation costs, or structural?
  • Talc litigation exposure and indemnification arrangement with J&J post-spin
  • Debt maturity ladder and refinancing plan for the $1.45B short-term debt
  • Segment-level growth (Self Care vs Skin Health vs Essential Health) to see where stagnation is concentrated
  • SBC grant/vest schedule and any planned buyback authorization to gauge future dilution trajectory
Valuation / Mispricing
-37
Fairly Valued
edge √Σ 20 · risk √Σ 59 · conf 7/10
price $19.06 vs deserved ~$18 - roughly 6% overpriced, essentially fair with a slight lean rich. attractive below $15.50

The composite fair value of $18.06 and signal-adjusted FV of $17.89 sit just below the $19.06 price, implying roughly -6% downside rather than any discount. The DCF ($18.24) and EPV floor ($10.90) both anchor below spot; only the anchored-PE method ($24.84) suggests upside, and that reflects peer multiples on a business the quality lens flags as stagnating with margin slippage - so I would not lean on it. Earnings quality is high, which validates the FV inputs rather than requiring a haircut. Nothing here suggests the market has mispriced the story: the steady-compounder narrative is fully in the price, and the bear case (mature OTC categories, share dilution outpacing buybacks) is not being discounted either. This is a solid staples business trading at a solid staples price. For a true margin of safety against a Solid (not Wide-Moat) business with flat growth, I want to buy meaningfully below the DCF, not at or above it.

Cheap signals 1
m20
Peer-multiple method suggests upside
Anchored-PE at $24.84 (~30% above price) hints the market is applying a discount vs staples peers, but flat growth and dilution justify part of that gap.
Rich / priced-in 3
m40
Price above composite FV
$19.06 vs composite $18.06 and signal-adjusted $17.89 implies -6% return before any risk premium; no margin of safety embedded.
m35
EPV floor far below price
EPV of $10.90 is 43% below spot, signaling that without growth credit the earnings power alone does not support the price - a Solid (not Great) business is being paid for as if growth reaccelerates.
m25
Steady-compounder narrative already priced
Brand-durability bull case is consensus; nothing in the price reflects the bear case of category decline or continued share creep.
This is textbook fairly valued - maybe a touch rich. The composite FV sits below spot, the EPV floor is dramatically lower, and only a peer-multiple method that ignores KVUE's flat growth flatters the price. I have no interest here; I would want it in the mid-15s before the risk-reward starts working, and closer to $13 to feel I am buying a Solid business with a real cushion. Passing at $19.
Verify before trusting this (4)
  • Organic revenue growth trajectory in Skin Health and Self Care segments
  • Gross margin recovery cadence vs input-cost normalization
  • Share count trend - is dilution from RSUs still outpacing buybacks
  • Any guidance revision on 2025 EPS or FCF conversion
General Sentiment
-26
Balanced
tail √Σ 39 · head √Σ 66 · conf 6/10

Kenvue sits in the sleepiest corner of the market right now: a consumer-defensive with beta 0.43, no active story, and a 'steady-compounder' archetype rated minimal intensity. The macro tape is modestly risk-on (+32), which is actually a mild relative headwind for defensives like KVUE - money rotates toward higher-beta cyclicals when VIX is 15 and the S&P is near highs, leaving staples as funding sources. But because the intensity is so low and beta so muted, that pressure barely lands. On the other side, the 10y at 4.69% and a market PE of 25.8 give a bond-proxy dividend name like KVUE a persistent low-grade drag - staples struggle when real yields stay elevated. The bear whisper (mature categories, at-home diagnostics eroding OTC) is a durable narrative overhang but not currently intensifying. The bull case (habitual brand demand, cash return) is equally quiet. Analyst tone and news flow don't show a catalyst either way. Net: this is a stock the tape mostly ignores. Small headwind from rotation-out-of-defensives and rate pressure on yield names, offset by the absence of any narrative crack or negative news cycle. Balanced with a faint downward tilt.

Tailwinds 2
m30
Narrative quietness is protective
Minimal narrative intensity and low cult coefficient mean no crowded positioning to unwind, no hype to disappoint. In a jittery tape, boring is a shield.
m25
Deleveraging read
D/E collapsing from 0.74 to 0.14 is the kind of quiet balance-sheet story that supports investment-grade sentiment and dividend confidence, even without narrative amplification.
Headwinds 4
m35
Defensive rotation drag in risk-on tape
Risk-on regimes pull capital toward higher-beta cyclicals; low-beta staples like KVUE become funding sources. Beta 0.43 means the effect is muted but persistent.
m40
Rate pressure on bond-proxy names
10y at 4.69% keeps dividend-yield consumer staples under structural sentiment pressure - they compete directly with risk-free coupons for income investors.
m30
Latent bear narrative on OTC decline
The 'mature categories eroded by at-home diagnostics and alt-wellness' story is durable and unresolved. Not intensifying now, but it caps any re-rating enthusiasm.
m25
Weakening cash generation flag
Softening FCF trend is exactly the datapoint that could awaken the dormant bear narrative on category decline; watch for it to become the story.
This is a stock the tape has forgotten, and that is neither good nor bad for sentiment right now. The macro cross-currents (risk-on rotation away from defensives, high rates pressing on yield names) create a soft, persistent headwind, but low beta and the absence of any active narrative - bull or bear - keep the pressure from mattering. I read it as balanced with a whisper of downward tilt; the real risk is that the quiet bear story on OTC decline gets fed by any weak print. Until then, KVUE drifts.
Verify before trusting this (4)
  • Any activist or strategic-review headline (KVUE has been rumored as a break-up candidate) - would flip narrative intensity overnight
  • Tylenol volume trends and any litigation flare-ups that could ignite a negative news cycle
  • Whether staples underperformance widens if the risk-on regime deepens beyond its nascent 1-day read
  • Analyst target revisions - currently quiet; a downgrade cluster would signal narrative shift
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
-11
Holding
edge √Σ 88 · risk √Σ 99 · conf 6/10

The world is moving toward self-directed health — more OTC self-treatment, pharmacist-led recommendation, aging populations, and consumers substituting home care for clinic visits. That is structurally supportive of Kenvue's shelf. Working against it: shopper willingness to buy store-brand actives has never been higher, retailers are the ones deciding shelf economics, and public scrutiny of long-trusted actives (acetaminophen especially) is rising in a way that can reprice trust faster than any marketing budget can rebuild it. Digital/e-commerce shifts the fight from brand recall to search-and-review, where private label competes on equal footing. Net: the demand pool is intact and slowly growing; the pricing umbrella over branded OTC is the thing genuinely at risk over years, not the volume.

Growth drivers 4
m62
Cost/margin self-help converting flat revenue into earnings growth
Matched-quarter YoY shows revenue +3.8% against operating income +17.3% and net income +25.3% — roughly 13pp of operating leverage. That gap is program-driven (supply-chain, SKU and overhead rationalization plus mix), not volume-driven, and such programs typically deliver for 4-8 more quarters before annualizing out. It is the single reason earnings can grow while the categories do not.
m43
Habitual, non-discretionary demand base
Pain relief, allergy, oral care, wound care and baby are replenishment purchases bought by habit and often on pharmacist/HCP recommendation. Volumes are largely insensitive to the macro headwind flagged in the backdrop, which is why revenue volatility is only 0.011 and quarterly trend reads 'accelerating' off a shallow base. This underwrites the Holding floor rather than any upside.
m37
Skin health / Neutrogena-Aveeno recovery leverage
The prior multi-year revenue CAGR of -1.0% was disproportionately a self-care/skin-health execution problem, not a category problem — the category itself compounded ~2.3%. Reversion of that one segment toward category growth is the highest-probability source of the recent +3.8% print continuing, and it is company-controllable (media spend, innovation cadence, shelf resets).
m26
Pricing/mix in branded OTC
Brand equity in acetaminophen, antihistamine and antiseptic lines supports low-single-digit price realization that alone roughly matches category growth of 1.5%, meaning volume needs only to be flat for revenue to hold.
Growth risks 5
m58
Acetaminophen safety/reputational and litigation overhang
Tylenol is the franchise anchor and it sits under public safety scrutiny and litigation exposure. This is the one risk that can convert Holding into Shrinking: consumer-health brands lose trust discontinuously, and switching to store-brand acetaminophen or ibuprofen is costless for the shopper. No evidence yet of structural volume loss in the measured data, but the tail is fat and non-diversifiable.
m49
Private-label trade-down in exactly these aisles
OTC analgesics, antihistamines and baby wash are the most heavily private-labeled shelves in retail, and retailers are actively expanding own-brand penetration. With a macro headwind backdrop, the price gap between branded and store brand is the live battleground — this caps volume growth and forces reinvestment of the margin savings back into promotion.
m41
Cash conversion deterioration
FCF CAGR of -20.1% against an earnings CAGR of -6.0% says reported profit improvement has not been converting to cash — working capital, separation/standalone costs, or restructuring cash outlays. Until that converges, the margin story is partly accounting-shaped and the reinvestment capacity for brand-building is thinner than the P&L implies.
m43
Category is mature AND now slowing
Industry revenue CAGR of 2.3% with a sector demand score of -1 and phase 'slowdown' means the tide provides almost nothing. Any growth must be taken from competitors or from price, and the historical record (-1.0% revenue CAGR into a +2.3% category) shows this company has not reliably done that.
m23
Cough/cold and allergy seasonality distorting the read
Two matched quarters of +3.8% is a thin base for a directional call in a business where respiratory season timing can swing a quarter by several points. The latest EPS print missed by 3% after a run of beats, consistent with the easy-comp phase ending.
vs expectations: ~6m inline · 1y inline · 2-3y inline
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -6.2% v0.6.0 View full prediction →

When we made this prediction on Aug 24, 2026, KVUE was $19.30. We expect it to be $18.10 by Feb 2027, and we consider it great value under $15.50. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 24, 2026.

Price when predicted$19.30
Our estimate for Feb 2027$18.10-6.2%
Great value below$15.50
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

Post-Report Due Diligence NOTES
The report is written. This is what its valuation stands on.
Analyzed Oct 5, 2026 · 02:00 3d ago
Read epv-floor ext-gem-composite anchored-pe · FY income statement, balance sheet
1 finding · $0, re-derived on each view

Evidence for a closer look, not a verdict — no score or designation on this page has been changed by it. Items marked material are ones where a conclusion above moves to the other side of the price.

anchored-pe — the "fair value above price" reading turns on 2 inputs NOTE found by sensitivity, not by rule
Published $24.10 vs price $19.06. Nudging `trailing_eps` (down 25%), `adjusted_pe` (down 25%) moves the fair value to the other side of the price. This does not say those inputs are wrong — it says they are where to look first.
trailing_eps flips down 25% adjusted_pe flips down 25%
Price at analysis $19.06. This is where an investigation should start — it is not where one ends. Nothing here was checked against the filings, the tape, or the news; that is the investigator's job.
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My Notes personal — only you see this
v1.1.760 · f4b58a28 · 2026-10-07 20:07:48