Kenvue Is A Mediocre Candidate

Feb. 08, 2025 7:44 AM ETKenvue Inc. (KVUE) Stock
(11min)

Summary

  • Kenvue, the world's largest pure-play consumer health company, has a market cap of $37.96 billion but struggles with profitability despite decent growth.
  • Management's cost-cutting initiatives show promise, but recent financials reveal mixed results, with revenue slightly up but net income and EBITDA declining.
  • Kenvue's valuation appears relatively cheap compared to peers, yet its fundamentals don't justify a bullish outlook; thus, I rate it a 'hold'.
  • Despite expected organic growth and cost savings, foreign currency fluctuations and modest earnings projections limit optimism for significant profitability improvements.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Female doctor hands putting band-aid on woman arm after giving vaccine

Luis Alvarez/DigitalVision via Getty Images

As an incredibly curious person, I am always on the lookout for new and interesting companies to analyze. One such firm that I came across is none other than Kenvue (KVUE). This

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This article was written by

33.48K Followers

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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