Kenvue Inc. (KVUE): A Bull Case Theory

Core Thesis - Kenvue Inc. is undergoing a strategic review to optimize its brand portfolio and enhance operating performance, aiming to unlock shareholder value [2][3][4] Company Overview - Kenvue Inc. operates as a consumer health company across multiple regions including the United States, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [2] - As of November 28th, Kenvue's share price was $17.35, with a market capitalization of approximately $30 billion and an enterprise value of around $38 billion [3] Financial Metrics - Kenvue's trailing and forward P/E ratios are 23.13 and 15.77 respectively, with an EV/EBITDA multiple of roughly 11× [1][3] - The company offers a dividend yield of about 4%, providing a solid income component for investors [3] Strategic Initiatives - The strategic review may lead to the sale of underperforming Skin Health & Beauty brands, acquisitions in high-growth OTC health categories, and capital reallocation to higher-margin segments [4] - Analysts estimate that these initiatives could raise Kenvue's margins and overall valuation by 15–25% [4] Investment Case - The combination of a disciplined strategic review, potential divestitures, and a focus on higher-margin segments positions Kenvue to enhance profitability and shareholder returns over time [5] - Kenvue's current valuation and dividend yield, along with strategic initiatives, create an attractive investment case for those seeking operational upside and a clear path to value creation [5]