Kenvue (KVUE): Weak Pricing Power and Slow SHB Recovery—What does Future oulook hinge upon ? Can the Company Overcome Regional Challenges?

$50.00 — or $120.00 / year

Kenvue's Q3 2024 results reflect resilience amid ongoing transformation initiatives, with revenue of $3.90 billion missing estimates by $19.32 million and organic growth of 0.9% at the low end of guidance. Adjusted EPS of $0.28 surpassed expectations by $0.01, driven by cost efficiencies, while GAAP EPS of $0.20 missed by $0.03. Segment performance was mixed: Self-Care posted modest organic growth (+0.7%) with strong contributions from Tylenol and Zyrtec, while Essential Health grew by 4.5% on the strength of Listerine and innovation momentum. However, Skin Health and Beauty (SHB) declined 2.7% organically, pressured by muted U.S. consumer demand and challenging category dynamics. Operational improvements included a 130 bps YoY gross margin expansion to 60.7%, supported by the Vue Forward initiative targeting $350 million in annualized savings by 2026. Investments in marketing, digital, and AI-driven content are showing promise, as seen with Neutrogena’s Collagen Bank campaign. Tailwinds include share gains in Self-Care and Essential Health, alongside innovation-led product launches. However, sustained softness in SHB, macro weakness in China, and low seasonal category incidence rates remain headwinds. Can Kenvue revitalize its SHB performance and sustain growth momentum in Self-Care and Essential Health amid pricing power challenges and uneven regional dynamics?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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