📊 KVUE Key Takeaways
Is Kenvue Inc. (KVUE) a Good Investment?
Kenvue demonstrates strong operational profitability and cash generation with solid 19.6% operating margins and $350M annual free cash flow, but declining revenue (-2.1% YoY) and severely depressed returns on capital (ROE 4.5%, ROA 1.8%) signal fundamental challenges in growth and capital efficiency. Tight liquidity (current ratio 0.98x) combined with $7.7B debt burden requires careful monitoring.
Kenvue exhibits solid underlying profitability with strong gross and operating margins and robust free cash flow generation, supporting debt service and capital allocation. Despite a modest revenue decline and tight liquidity, leverage appears manageable with adequate interest coverage and healthy ROE. A return to organic growth and continued balance sheet strengthening would reinforce the fundamental story.
Kenvue Inc. Key Strengths (KVUE)
- Robust profitability margins (Gross 58.9%, Operating 19.6%, Net 12.1%)
- Solid free cash flow generation ($350M annually with 9% FCF margin)
- Manageable leverage with healthy interest coverage ratio of 7.2x
- EPS growth of 40.7% YoY demonstrates cost discipline and shareholder-focused capital management
- Established presence in stable consumer categories with diversified product portfolio
- High gross (58.1%) and operating (16.0%) margins
- Strong free cash flow with 11.4% FCF margin
- Adequate interest coverage (5.6x) and solid ROE (13.7%)
KVUE Stock Risks: Kenvue Inc. Investment Risks
- Declining revenue (-2.1% YoY) indicates demand or competitive pressures in core markets
- Severely weak capital efficiency (ROE 4.5%, ROA 1.8%) suggests poor asset deployment despite $26.9B in assets
- Liquidity stress with current ratio below 1.0x (0.98x) and quick ratio of only 0.70x
- High absolute debt level ($7.7B) limits financial flexibility for investments or acquisitions
- EPS growth driven by cost-cutting rather than revenue expansion raises sustainability concerns
- Revenue contraction (-2.1% YoY) signals growth headwinds
- Tight liquidity (current 0.96x, quick 0.68x)
- Moderate leverage (D/E 0.71) may constrain flexibility
Key Metrics to Watch
- Revenue growth reversal - critical for assessing market position sustainability
- Return on Equity and Asset returns - must trend higher from current depressed levels
- Free cash flow conversion and operating cash flow stability
- Liquidity position and working capital management
- Debt reduction progress relative to revenue trends
- Organic revenue growth
- Net debt and interest coverage
Kenvue Inc. (KVUE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KVUE Profit Margin, ROE & Profitability Analysis
KVUE vs Consumer Sector: How Kenvue Inc. Compares
How Kenvue Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kenvue Inc. Stock Overvalued? KVUE Valuation Analysis 2026
Based on fundamental analysis, Kenvue Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kenvue Inc. Balance Sheet: KVUE Debt, Cash & Liquidity
KVUE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kenvue Inc.'s revenue has shown modest growth of 0% over the 5-year period. The most recent EPS of $0.90 reflects profitable operations.
KVUE Revenue Growth, EPS Growth & YoY Performance
KVUE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $322.0M | $0.17 |
| Q3 2025 | $3.8B | $383.0M | $0.20 |
| Q2 2025 | $3.8B | $58.0M | $0.03 |
| Q1 2025 | $3.7B | $296.0M | $0.15 |
| Q3 2024 | $3.9B | $383.0M | $0.20 |
| Q2 2024 | $4.0B | $58.0M | $0.03 |
| Q1 2024 | $3.9B | $296.0M | $0.15 |
| Q3 2023 | $3.8B | $438.0M | $0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kenvue Inc. Dividends, Buybacks & Capital Allocation
KVUE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kenvue Inc. (CIK: 0001944048)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 4 | xslF345X06/form406297362_05262026.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779829865.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779829859.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779829855.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779829849.xml | View → |
❓ Frequently Asked Questions about KVUE
What is the AI rating for KVUE?
Kenvue Inc. (KVUE) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KVUE's key strengths?
Claude: Robust profitability margins (Gross 58.9%, Operating 19.6%, Net 12.1%). Solid free cash flow generation ($350M annually with 9% FCF margin). ChatGPT: High gross (58.1%) and operating (16.0%) margins. Strong free cash flow with 11.4% FCF margin.
What are the risks of investing in KVUE?
Claude: Declining revenue (-2.1% YoY) indicates demand or competitive pressures in core markets. Severely weak capital efficiency (ROE 4.5%, ROA 1.8%) suggests poor asset deployment despite $26.9B in assets. ChatGPT: Revenue contraction (-2.1% YoY) signals growth headwinds. Tight liquidity (current 0.96x, quick 0.68x).
What is KVUE's revenue and growth?
Kenvue Inc. reported revenue of $3.9B.
Does KVUE pay dividends?
Kenvue Inc. pays dividends, with $398.0M distributed to shareholders in the trailing twelve months.
Where can I find KVUE SEC filings?
Official SEC filings for Kenvue Inc. (CIK: 0001944048) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KVUE's EPS?
Kenvue Inc. has a diluted EPS of $0.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KVUE's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kenvue Inc. has a A grade with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KVUE stock overvalued or undervalued?
Valuation metrics for KVUE: ROE of 4.5% (sector avg: 18%), net margin of 12.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is KVUE's AI grade for 2026?
Our dual AI analysis gives Kenvue Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KVUE's free cash flow?
Kenvue Inc.'s operating cash flow is $489.0M, with capital expenditures of $139.0M. FCF margin is 9.0%.
How does KVUE compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 12.1% (avg: 8%), ROE 4.5% (avg: 18%), current ratio 0.98 (avg: 1.5).