It’s not every day you see a company show the CEO the door and announce a strategic review all at once, but that’s exactly what Kenvue did. In a bold move that turned heads on Wall Street, the consumer health spin-off from Johnson & Johnson that owns storied brands like Tylenol and Band-Aid, signaled it’s ready to rethink everything from who’s steering the ship to where it’s headed.
Behind the scenes, activist investors have been turning up the heat, pushing for governance changes and demanding sharper execution. Now, with the top job vacant and “strategic alternatives” on the table, Kenvue’s direction has never been more uncertain or more consequential.
Kenvue (KVUE): 22.54
Market Cap: $43.27B
EV: $50.96B
Key Insights
Company Profile
Kenvue (KVUE) is a global consumer health company delivering everyday care products across more than 165 countries.
Kenvue operates through three segments: Self Care, Skin Health & Beauty, and Essential Health.
Formed in 2022 and spun off from Johnson & Johnson (JNJ) in 2023, Kenvue is headquartered in Summit, New Jersey, and operates as one of the largest standalone consumer health companies.
The Kenvue IPO and What Came Next
In May 2023, Johnson & Johnson (JNJ) strategically spun off its consumer health division into Kenvue to allow J&J to focus on its higher-margin pharmaceutical and medical device businesses while giving Kenvue the ability to reinvest in marketing and operational agility away from litigation risks tied to J&J’s legacy.
Kenvue’s IPO in early May 2023 valued the company at approximately $41 billion, making it one of the largest U.S. IPOs in recent years, with an initial listing price of $22 per share.
On July 24, 2023, J&J took a major step toward fully severing ties with its consumer health spin-off by unveiling an exchange offer to offload at least 80.1% of its remaining stake in Kenvue. To sweeten the deal, J&J offered a 7% discount, allowing shareholders the chance to trade their J&J stock for Kenvue shares on favorable terms, up to a cap of 8.0549 Kenvue shares per J&J share. By August 23, 2023, the transaction was completed, making Kenvue a fully independent company.
Since becoming independent, Kenvue has struggled to deliver on projected growth. Sales have declined approximately 4% in both Q1 and Q2 of 2025, and the stock is down nearly 20% from its IPO price, significantly underperforming peers such as Colgate Palmolive and even its former parent company J&J.
Investors have grown increasingly skeptical of Kenvue’s standalone narrative, as peers continue to grow while Kenvue’s brand equity hasn’t translated into earnings power.
These challenges have sparked investor concern and prompted activist shareholders to push for change, ultimately leading to leadership upheaval and a strategic review aimed at optimizing the brand portfolio and reigniting growth momentum.
CEO Out, CFO Replaced
Kenvue ousted CEO Thibaut Mongon amid mounting investor pressure. Mongon, who began his career at Danone and later worked at Bormioli Rocco, had led Kenvue since its spin-off from Johnson & Johnson.
His exit follows the May departure of CFO Paul Ruh, who was replaced by Amit Banati from Kellanova.
Mongon, a 20-year Johnson & Johnson veteran, had been a natural pick to steer Kenvue through its spinout, having chaired J&J’s consumer health division for four years. But his exit, along with Ruh’s, marks a broader pivot as the company responds to mounting activist pressure, particularly to address underperformance in its skin and beauty segment, which includes brands like Neutrogena and Aveeno.
Board member Kirk Perry has stepped in as interim CEO. Perry brings a strong consumer and analytics background, having served as CEO of Circana and held leadership roles at Google and Procter & Gamble making him a well-rounded interim choice during Kenvue’s pivotal transition. He also serves on the boards of The J.M. Smucker Company and Chick-fil-A.
Investor Pressure and Strategic Review
In early 2025, activist hedge fund Starboard Value criticized Kenvue’s “ineffective board oversight” and “disappointing” financials. In response, Kenvue struck a cooperation agreement with Starboard, appointing its CEO, Jeffrey Smith, to the board along with two additional independent directors.
The unrest didn’t stop there. Third Point, led by Daniel Loeb, and Toms Capital also built stakes in the company. Toms reportedly urged a full sale of the business, while others have pushed for sharper operational discipline and brand rationalization. The company is now undergoing a formal strategic review, advised by Centerview Partners and McKinsey & Company. Options on the table include divesting non-core assets or even selling the entire business.
What Investors Want
Sale on the Horizon?
Analysts suggest the appointment of Perry signals a higher likelihood of a sale either of certain brand units or the entire company. Given the size of the company, with an enterprise value exceeding $50 billion, I think a sale of the entire company, while possible, is unlikely. That said, the acquisition of Kellanova (K) by Mars is also a massive deal valued at nearly $36 billion.
Kenvue Looks to Trim Beauty Cabinet
In a bid to streamline operations and refocus on its core brands, Kenvue is exploring the sale of several underperforming skin health and beauty lines, including Clean & Clear, Maui Moisture, Neostrata, its German baby care brand Bebe, and Japanese brand Dr.Ci:Labo.
While the company plans to retain key names like Neutrogena and Aveeno, the divestitures guided by Goldman Sachs could shed roughly $500 million in annual revenue. The segment has been a drag, with organic sales down 4.8% in Q1 2025.
Valuation and Dividends
Kenvue currently trades at a forward P/E of ~18.9× and an EV/EBITDA multiple of ~13.9× both above the consumer staples sector average. This elevated multiple reflects investor expectations for a turnaround in growth and profitability, despite recent sales headwinds.
Its price-to-sales ratio (~2.7×) is also notably higher than peers, suggesting the market is still pricing in the strength of Kenvue’s brand portfolio and margin profile.
Kenvue’s current quarterly dividend payout is $0.205 per share. This translates to an annual dividend of $0.82 per share, yielding about 3.7% at the current stock price of $22.67. The company’s dividend expense of $1.5 billion is nearly equivalent to Kenvue’s free cash flow, which was reported at $1.6 billion for 2024.
While the company maintains a payout ratio of 74.09%, indicating a sustainable dividend relative to earnings, the narrow cushion with free cash flow raises questions about financial flexibility. Given the company’s high debt load and recent sales challenges, the dividend may not be as safe as it might appear on the surface.
Financials
Kenvue’s Q1 2025 revenue declined 3.9% year-over-year to $3.6 billion, with organic sales down 1.2%, mainly due to volume softness in the Skin Health & Beauty segment, the steepest drop across its portfolio. Operating income fell 11.3%, highlighting growing cost pressures and weaker margins.
On the balance sheet side, Kenvue reported $1 billion in cash and cash equivalents. However, it also has $2.4 billion in short-term borrowings and approximately $7.8 billion in net debt, roughly 4–5 times its free cash flow.
First Quarter 2025 Results (Press Release) (Investor Presentation)
The disappointing Q2 trends underscore why Kenvue’s strategic review isn’t just routine housekeeping, it’s a direct response to deteriorating core metrics that challenge the long-term thesis.
The company announced it will report its full second quarter 2025 financial results on August 7, 2025, and, at that time, will also revise its full year 2025 outlook.
Key Risks
Conclusion
Kenvue, along with other consumer products companies has faced years of headwinds from private-label brands and more importantly from losing the ability to advertise to a majority of the population through primetime TV or radio. With the proliferation of social media and influencer marketing, brands have been facing a slow but steady decline and a turnaround is often needed through some combination of spinoffs, divestitures and mergers.
While these financial maneuvers help in the short-term, what is absolutely needed is a wholesale reimagining of the business. A slimmed down Kenvue can hopefully start to get there especially considering its bench of widely recognized and trusted brands.
The company is expected to earn $1.13 per share in 2025 and $1.21 in 2026, which is not significantly higher than what it earned in 2024. If the company can improve EPS by divesting underperforming brands and new leadership can deliver consistent double digit EPS growth, the stock might have potential to go higher. This is a tall order in a world where consumer packaged goods companies are likely to grow not much faster than the rate of GDP unless there is sustained high inflation.
The best way forward could be to divest certain brands and then set up the company for an acquisition by a larger company much like we saw with WK Kellogg (KLG) and Kellanova (K).
CEO
CFO
General Counsel/Chief Legal Officer
Others
Appointments
1. Novartis (NVS): $117.97
On Jul 17, 2025, Novartis announced the appointment of Mukul Mehta as the Chief Financial Officer effective March 16, 2026.
| MarketCap: $227.47B | Avg. Daily Volume (30 days): 1,667,232 | Revenue (TTM): $55.19B |
| Net Income Margin (TTM): 24.74% | ROE (TTM): 32.49% | Net Debt: $25.19B |
| P/E: 17.20 | Forward P/E: 13.66 | EV/EBIDTA (TTM): 11.34 |
| P/S (TTM): 4.19 | P/B (TTM): 5.67 | 52 Week Range: $96.06 – $124.83 |
2. Southern Company (SO): $95.13
On July 10, 2025, the Board of Directors of The Southern Company appointed David P. Poroch, currently Comptroller of Southern Company as Chief Financial Officer of Southern Company, effective July 31, 2025.
| MarketCap: $104.55B | Avg. Daily Volume (30 days): 5,224,619 | Revenue (TTM): $27.85B |
| Net Income Margin (TTM): 16.54% | ROE (TTM): 12.24% | Net Debt: $67.79B |
| P/E: 22.81 | Forward P/E: 21.96 | EV/EBIDTA (TTM): 12.69 |
| P/S (TTM): 3.75 | P/B (TTM): 2.99 | 52 Week Range: $80.46 – $96.44 |
3. Liberty Broadband (LBRDA): $90.34
On July 10, 2025, Martin E. Patterson was appointed to the role of President and Chief Executive Officer of Liberty Broadband, effective July 14, 2025.
| MarketCap: $13.04B | Avg. Daily Volume (30 days): 203,308 | Revenue (TTM): $1.04B |
| Net Income Margin (TTM): 86.40% | ROE (TTM): 9.32% | Net Debt: $3.94B |
| P/E: 14.43 | Forward P/E: 23.35 | EV/EBIDTA (TTM): 12.30 |
| P/S (TTM): 12.57 | P/B (TTM): 1.21 | 52 Week Range: $51.74 – $95.95 |
4. Hershey Company (HSY): $183.23
On July 6, 2025, the Board of Directors of The Hershey Company appointed Kirk Tanner as President and Chief Executive Officer effective as of August 18, 2025.
| MarketCap: $37.12B | Avg. Daily Volume (30 days): 1,858,263 | Revenue (TTM): $10.74B |
| Net Income Margin (TTM): 15.32% | ROE (TTM): 37.48% | Net Debt: $4.78B |
| P/E: 22.57 | Forward P/E: 32.36 | EV/EBIDTA (TTM): 16.78 |
| P/S (TTM): 3.45 | P/B (TTM): 7.40 | 52 Week Range: $140.13 – $208.03 |
5. Boeing Company (BA): $233.88
On June 29, 2025, the Board of Directors of The Boeing Company elected Jesus (Jay) Malave as Chief Financial Officer, effective August 15, 2025 succeeding Brian J. West in that role.
| MarketCap: $176.35B | Avg. Daily Volume (30 days): 8,244,837 | Revenue (TTM): $69.44B |
| Net Income Margin (TTM): -16.58% | ROE (TTM): 113.12% | Net Debt: 32.23B |
| P/E: -13.02 | Forward P/E: N/A | EV/EBIDTA (TTM): -31.26 |
| P/S (TTM): 2.54 | P/B (TTM): -38.64 | 52 Week Range: $128.88 – $235.27 |
Departures
1. Novartis (NVS): $117.97
On July 17, 2025, Novartis announced that Mukul Mehta will succeed Harry Kirsch as Chief Financial Officer. Kirsch, who has held the role since 2013, will retire from the company effective March 15, 2026.
| MarketCap: $227.47B | Avg. Daily Volume (30 days): 1,667,232 | Revenue (TTM): $55.19B |
| Net Income Margin (TTM): 24.74% | ROE (TTM): 32.49% | Net Debt: $25.19B |
| P/E: 17.20 | Forward P/E: 13.66 | EV/EBIDTA (TTM): 11.34 |
| P/S (TTM): 4.19 | P/B (TTM): 5.67 | 52 Week Range: $96.06 – $124.83 |
2. Kenvue (KVUE): $22.54
On July 14, 2025, Kenvue announced that Thibaut Mongon has ceased to serve as Kenvue’s Chief Executive Officer and has also stepped down from Kenvue’s Board of Directors effective immediately.
| MarketCap: $43.27B | Avg. Daily Volume (30 days): 19,253,813 | Revenue (TTM): $15.30B |
| Net Income Margin (TTM): 6.90% | ROE (TTM): 10.22% | Net Debt: $7.79B |
| P/E: 40.25 | Forward P/E: 19.45 | EV/EBIDTA (TTM): 16.67 |
| P/S (TTM): 2.83 | P/B (TTM): 4.57 | 52 Week Range: $18.11 – $25.17 |
3. Dollar General (DG): $109.24
On July 11, 2025, Kelly M. Dilts, Chief Financial Officer of Dollar General Corporation, informed the company of her decision to resign, effective August 28, 2025, to pursue another opportunity. The Company has commenced a search for her successor.
| MarketCap: $24.04B | Avg. Daily Volume (30 days): 3,454,096 | Revenue (TTM): $41.13B |
| Net Income Margin (TTM): 2.81% | ROE (TTM): 15.69% | Net Debt: 16.17B |
| P/E: 20.85 | Forward P/E: 19.88 | EV/EBIDTA (TTM): 14.69 |
| P/S (TTM): 0.58 | P/B (TTM): 2.58 | 52 Week Range: $66.43 – $126.98 |
4. Southern Company (SO): $95.13
On July 10, 2025, the Board of Directors of The Southern Company David P. Poroch will succeed Daniel S. Tucker, who, on July 10, 2025, announced he will retire from Southern Company, effective October 1, 2025.
| MarketCap: $104.55B | Avg. Daily Volume (30 days): 5,224,619 | Revenue (TTM): $27.85B |
| Net Income Margin (TTM): 16.54% | ROE (TTM): 12.24% | Net Debt: $67.79B |
| P/E: 22.81 | Forward P/E: 21.96 | EV/EBIDTA (TTM): 12.69 |
| P/S (TTM): 3.75 | P/B (TTM): 2.99 | 52 Week Range: $80.46 – $96.44 |
5. Boeing Company (BA): $233.88
On June 29, 2025, the Board of Directors of The Boeing Company announced Brian J. West will step down as Chief Financial Officer of The Boeing Company on August 15, 2025, transitioning to the role of Special Advisor to the CEO.
| MarketCap: $176.35B | Avg. Daily Volume (30 days): 8,244,837 | Revenue (TTM): $69.44B |
| Net Income Margin (TTM): -16.58% | ROE (TTM): 113.12% | Net Debt: 32.23B |
| P/E: -13.02 | Forward P/E: N/A | EV/EBIDTA (TTM): -31.26 |
| P/S (TTM): 2.54 | P/B (TTM): -38.64 | 52 Week Range: $128.88 – $235.27 |
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