Core Insights - During volatile markets, investors are increasingly turning to the consumer staples sector for stability, prioritizing essential products like food and hygiene items [1] - Familiar household brands play a significant role in consumer choices during uncertain times, providing a sense of comfort [1] Company Analysis: Edgewell Personal Care - Edgewell Personal Care's stock is currently priced at $30.13, with a 52-week range of $26.65 to $41.50 and a dividend yield of 1.99% [3] - The company reported fiscal Q1 2025 earnings with an EPS of $0.07, missing analyst estimates by $0.05, and revenues decreased by 2.1% year-over-year to $478.4 million, below the consensus estimate of $480.11 million [6] - Organic net sales fell by 1.3%, while international sales grew by 2% year-over-year, driven by gains in Wet Shave and Sun and Skincare categories [7] - A weaker U.S. dollar could potentially increase Edgewell's annual revenue by $40–$50 million, as 20% of its revenue comes from international sales [9][10] - The company has a strong private label business and holds over 2,000 global patents, with a 91% distribution of the top 50 global private-label shave retailers [4] Company Analysis: Kenvue - Kenvue, spun off from Johnson & Johnson in 2023, is known for major brands like Tylenol and Band-Aid, and its stock is currently priced at $22.70 with a dividend yield of 3.61% [11][14] - Kenvue's Q4 2024 earnings report showed an EPS of $0.26, in line with estimates, but revenues fell by 0.1% year-over-year to $3.55 billion, missing the consensus of $3.76 billion [15] - The company anticipates organic sales growth of 2% to 4% for 2025, despite a 3% headwind from foreign currency translation [19] - Kenvue is facing pressure from activist investors, which could lead to a breakup or acquisition, adding another layer of potential growth [20]

Market Overview - Investors are currently selling growth stocks due to new tariff policies, leading to a decline of approximately 10% in the S&P 500 and Nasdaq Composite since April 2, 2023 [1][2]. Company Profile: Kenvue - Kenvue was spun off from Johnson & Johnson in 2023 and represents J&J's consumer health portfolio, including well-known brands like Listerine, Neutrogena, and Tylenol [5][6]. Investment Thesis for Kenvue - Despite potential supply chain disruptions from tariffs, Kenvue is viewed as a good investment opportunity due to its portfolio of consumer staple products that are essential regardless of economic conditions [6][7]. - Kenvue's products tend to have inelastic demand, meaning consumers are likely to continue purchasing trusted brands even if prices rise [8]. - Kenvue is not classified as a growth stock, but it is positioned for stability and potential growth amid market fluctuations, making it a prudent choice for investors [9][10]. Financial Metrics - Kenvue offers an attractive dividend yield of 3.7%, which is nearly three times the yield of the SPDR S&P 500 ETF Trust, providing a compelling case for dividend investors [10][11].

Core Insights - Kenvue Inc. has launched a new campaign for its OGX® brand featuring actress Shay Mitchell as the global brand ambassador, focusing on hair repair solutions at competitive prices [1][2][4] - The campaign emphasizes the OGX® Bond Protein Repair line, which utilizes a patented bond-building protein to repair and strengthen hair, making it accessible to consumers seeking effective solutions without the high costs associated with salon brands [3][4] Company Overview - Kenvue Inc. is recognized as the world's largest pure-play consumer health company by revenue, with a portfolio of iconic brands including Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena®, and Tylenol® [6] - The company aims to empower consumers through science-backed products and has a commitment to addressing everyday health and beauty needs [6] Product Details - The OGX® Bond Protein Repair line is designed to protect and strengthen hair, featuring products like the OGX® Bond Protein Repair 450°F Heat Protect Spray, which offers protection against high heat styling [3] - The campaign includes educational content on social media, highlighting the impact of heat, color, and styling damage on hair, while promoting affordable repair solutions [2][4] Brand Positioning - OGX® positions itself as the 1 brand in hair repair, leveraging Shay Mitchell's influence to enhance brand visibility and consumer engagement [1][4] - The campaign aims to educate consumers on hair damage and effective repair methods, with expert insights from trichologist Abbey Yung [2][4]

Inspired by the legendary 'You Can't See Me' catchphrase, the Sunscreen You Can't See campaign reinforces that while you may not see Ultra Sheer ® Sunscreen on your skin, the high-SPF mineral formula is working hard to protect you from the harshest UV rays. Joining Cena in the campaign is dermatologist and skin cancer surgeon Dr. Neera Nathan. "I had a blast working on this campaign. It's funny, but it also gets across a really important point—wearing SPF every day isn't something you should skip," said Joh ...

Core Insights - The campaign "Sunscreen You Can't See" emphasizes the effectiveness of Neutrogena® Ultra Sheer® Sunscreen, highlighting its high-SPF mineral formula that provides protection from UV rays while being lightweight and invisible on the skin [1][2] Product Features - Neutrogena® Ultra Sheer® Sunscreen offers broad-spectrum UVA/UVB protection through proprietary Helioplex® and Purescreen® Technology, ensuring a fast-absorbing, ultra-light, and non-greasy application [2] - The product is designed for daily use, aiming to make sunscreen application effortless and enjoyable [2] Marketing Strategy - The company aims to engage younger audiences by using humor and cultural relevance in its messaging about sun safety and daily sunscreen use [3] - Neutrogena® plans to enhance its commitment to sun safety education in 2025, increasing dermatologist engagement and providing sunscreen samples at events like the Coachella Valley Music and Arts Festival [3][4] Community Engagement - The brand will serve as the official sun care sponsor for the 2025 World Surf League, promoting sun protection for beach and water activities [4] - Neutrogena® has partnered with Young Minds Inspired to create the Sun Safety for All program, which aims to educate students nationwide about sun protection [4] Company Background - Kenvue Inc. is recognized as the world's largest pure-play consumer health company by revenue, with a portfolio of iconic brands including Neutrogena®, which has been developing skincare solutions for over 90 years [5][6]

Group 1 - The article discusses a value investing approach focusing on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [1] - It emphasizes the importance of tracking earnings growth versus price appreciation as a key element in evaluating investment quality [1] - The author advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] Group 2 - The author has a background in private credit and CRE mezzanine financing, having worked with notable CRE developers [1] - The article does not provide specific financial advice and is based on the author's personal opinions and experiences [3] - There is a disclosure of beneficial long positions in several companies, indicating a vested interest in the stocks mentioned [2]

Group 1 - Kenvue has settled its proxy fight with activist investor Starboard Value, with Starboard's Jeff Smith joining the board along with two new independent directors [1] - Kenvue is known for its well-known brands such as Aveeno, Band-Aid, Listerine, Neutrogena, Tylenol, and Johnson & Johnson's baby powder and shampoo [2] - Johnson & Johnson completed its separation from Kenvue in August 2023 but still retains a stake in the consumer goods company [2] Group 2 - Starboard Value has amassed a significant stake in Kenvue and has expressed disappointment in the company's management and share-price performance [2]

Transformation and Growth Strategy - Kenvue has executed a significant transformation agenda since its separation from J&J, focusing on modernizing systems and optimizing operations to drive sustainable and profitable growth[21]. - Following the Kenvue IPO in May 2023, J&J owned approximately 89.6% of Kenvue's outstanding common stock, which was reduced to 0% after the completion of the Debt for Equity Exchange in May 2024[22]. Product Portfolio and Innovation - Kenvue's product portfolio includes major brands in Self Care, Skin Health and Beauty, and Essential Health, with a focus on delivering connected health offerings and dermatological solutions[28]. - The company employs approximately 1,600 scientists and professionals in its R&D organization, which operates a global network of innovation hubs to enhance product development[31]. Manufacturing and Supply Chain - Over 60% of Kenvue's sales volume during fiscal year 2024 was delivered through in-house manufacturing, providing significant operational flexibility[37]. - Kenvue's distribution network is designed to meet complex consumer demands, with most centers operated in partnership with third-party operators to leverage their expertise[39]. - The company maintains a global supplier base for raw materials, ensuring no single supplier provides a significant portion of total material requirements, thus mitigating supply chain risks[36]. Workforce and Employee Engagement - Kenvue's workforce consists of approximately 22,000 employees, with 99% being full-time, reflecting a diverse and inclusive company culture[50]. - The company emphasizes transparency, empowerment, and accountability in its talent practices to enhance performance and engagement[52]. - Investment in learning and development is prioritized to ensure employees' skills remain relevant, contributing to superior performance and engagement[53]. - Regular surveys are conducted to gauge employee sentiment on strategic alignment, execution, inclusion, and career development[54]. - Competitive compensation and benefits packages are offered to attract and retain top talent, with periodic benchmarking to ensure competitiveness[56]. - Employee benefits include retirement plans, life insurance, medical and dental insurance, and well-being reimbursement programs[57]. Corporate Social Responsibility and ESG - The company's ESG strategy, known as the Healthy Lives Mission, focuses on nurturing healthy people, enriching a healthy planet, and maintaining healthy practices[45]. - The company supports communities through strategic investments and its global employee volunteer program, Kenvue Cares[55]. Regulatory Compliance and Risk Management - Compliance with extensive government regulations is essential, impacting business strategies and operational costs[65]. - The company’s OTC products are regulated under the FDA's monograph system, requiring adherence to specific quality and labeling standards[69]. - In China, OTC products are regulated by the National Medical Products Administration (NMPA), which oversees safety and registration[71]. Financial Performance and Economic Factors - A hypothetical 10% unfavorable change in the average exchange rate would result in a decline in net income of approximately $83 million for the fiscal year ending December 29, 2024[425]. - A hypothetical 10% unfavorable change in exchange rates would lead to an unrealized loss of approximately $187 million related to the fair value of forward foreign exchange contracts and cross currency swap contracts[426]. - Inflationary pressures have increased costs of raw materials, packaging, and other inputs, with price increases implemented to offset these costs during 2023 and 2024[427]. - The company has experienced higher than expected inflation since 2021, affecting transportation, commodity, and supply chain costs[428]. Debt and Interest Rate Management - The long-term debt portfolio is primarily composed of fixed-rate debt, minimizing the impact of interest rate fluctuations on results of operations[430]. - The company incurred approximately $9.0 billion of new debt related to the Debt Financing Transactions[431]. - As of December 29, 2024, the company has $7.7 billion of Senior Notes and $797 million of commercial paper outstanding[431]. - The company is exposed to interest rate risk due to potential changes in interest rates affecting new floating rate debt[431]. - The company entered into forward starting interest rate swap agreements for long-term financing purposes[432]. Commodity and Credit Risk Management - The company is exposed to commodity price risks from various inputs including resins, silicon, and energy[434]. - Credit risk is managed through evaluations of customers' financial conditions and obtaining collateral as appropriate[435]. - Current adverse macroeconomic factors may increase the difficulty in collecting receivables[435]. - The company contracts with diverse, credit-worthy counterparties to mitigate credit loss risks[435].

Core Viewpoint - Kenvue, having spun off from Johnson & Johnson, is facing challenges with organic growth but has a strong brand portfolio and a commitment to shareholder value, making it a potential investment for risk-averse investors seeking passive income [1][2]. Group 1: Company Overview - Kenvue is a consumer health company with a portfolio of well-known brands such as Band-Aid, Listerine, Tylenol, Aveeno, and Neutrogena, which allows it to minimize advertising costs [3]. - The company is resilient to economic downturns, but it has experienced sluggish growth as an independent entity [4]. Group 2: Investor Engagement - Activist investor Starboard Value has taken a significant stake in Kenvue, indicating potential solutions to the company's challenges [5]. - Kenvue has responded to Starboard's board nominations, highlighting its commitment to shareholder value, although this pressure adds uncertainty to its strategic direction [6]. Group 3: Financial Performance and Strategy - Kenvue's Vue Forward plan aims for $350 million in annualized savings by 2026, with an adjusted gross margin of 60.4%, which is 400 basis points above pre-pandemic levels [7]. - The company has increased brand investment by 20% to enhance marketing efforts, including social media campaigns and engagement with healthcare professionals [8]. Group 4: Future Outlook - Kenvue anticipates organic sales growth of 2% to 4% in 2025, with a flat year-over-year net sales outlook due to a 3% foreign currency headwind [10]. - The company is focusing on marketing to younger generations and restoring confidence in its strategy despite external pressures [11]. Group 5: Dividend and Valuation - Kenvue has a stable and growing dividend, having raised it by 2.5% in July 2024, and is recognized as a Dividend King with 61 consecutive years of increases [13]. - The forward price-to-earnings ratio is 19.1, indicating a reasonable valuation for a high-quality dividend stock [13][14].

Group 1 - Kenvue Inc. (NYSE: KVUE) was spun off from Johnson & Johnson (JNJ) less than 2 years ago and is still establishing itself as a standalone company [1] - The company is expected to show growth potential beyond 2025, indicating a positive outlook for its future performance [1] Group 2 - The article emphasizes the importance of conducting personal due diligence before making investment decisions [1] - The author expresses a commitment to helping lower and middle-class workers build investment portfolios focused on high-quality, dividend-paying companies [1]