Kenvue Inc.

Wide-moat global consumer-health franchise with iconic brands and top-decile margins and cash generation.

Strengths

• Best-in-class profitability and cash: net margin 9.7% (93rd), operating margin (93rd), FCF $1.72B (100th pct)
• Durable moat from iconic brands (Tylenol, Neutrogena, Listerine, Band-Aid) and 43% earnings growth
• Low leverage (D/E 0.13) with healthy ROE (13.7%) and ROA (77th pct)

Risks

• Slight revenue decline (-2.1%, 33rd pct) signals modest top-line softness
• Pending Kimberly-Clark merger adds integration/closing uncertainty

Notable findings

• RestatementGovernance Practices Our Board of Directors (the “Board”) has adopted Principles of Corporate Governance that, together with our Amended and Restated Certificate of Incorporation, Amended and Resta 8-K ↗
• Exec changeRecent 8-K item 5.02 8-K ↗
• Weak liquidityCurrent ratio 0.96 (<1)
• Customer concentration~60% of revenue from one customer/distributor — ” Manufacturing Footprint Our in-house manufacturing footprint delivered approximately 60% of our sales volume during the fiscal year 2025, with the remaining sales volume being supplied by an e
• Strong balance sheetStrong balance sheet — $1.1B cash & investments
• Pending mergerProposed Transaction with Kimberly-Clark On November 2, 2025, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Kimberly-Clark Corporation, a Delaware corporation (“K-C”