NYSE: KVUE · Personal Care Products
Kenvue
Kenvue, based in Summit, New Jersey, was separated from Johnson & Johnson through a 2023 IPO and describes itself as the world’s largest pure-play consumer health company by revenue, with brands including Tylenol, Listerine, Neutrogena, Aveeno, BAND-AID, Johnson’s, Nicorette and Zyrtec. Fiscal 2025 net sales fell 2.1% to $15,124 million — Self Care $6,378 million, Essential Health $4,632 million, Skin Health and Beauty $4,114 million — while net income rose to $1,470 million. Its top 10 customers make up about 41% of sales. In November 2025 it agreed to be acquired by Kimberly-Clark for stock and cash, with closing expected in the second half of 2026. It faces lawsuits, including one by the Texas Attorney General (October 2025), alleging Tylenol use in pregnancy is linked to autism and ADHD, after similar claims by U.S. federal officials in September 2025.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 26, 2026 15:13 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Built on10-K FY2025 · filed 2026-02-2010-Q (quarter ended 2026-09-27) · filed 2026-10-30Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 0.1%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 16.0%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +3.4 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.5x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.49x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 2 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 21.9x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.34
Higher than 6% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 41% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 51% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 65% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 47% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-10-30; trailing 12 months to 2026-09-27
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$19.31close on 2026-10-30
Market cap$37B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 21.9x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 15.0x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 4.7%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 4.3%
At FY2025 year-end: 22.6x
Earnings: trailing 12 months to 2026-09-27
At FY2025 year-end: 3.1x
Book value at FY2025 year-end
At FY2025 year-end: 13.6x
EBITDA for FY2025
At FY2025 year-end: 5.2%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-10-30, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 27, 2026.
- Revenue$3.76B → $3.89B (vs. a year earlier)↑ +3.2%$3.76B → $3.89B (vs. a year earlier)
- Operating margin16.7% → 18.2% (vs. a year earlier)↑ +1.5 pts16.7% → 18.2% (vs. a year earlier)
- Net income$398M → $430M (vs. a year earlier)↑ +8.0%$398M → $430M (vs. a year earlier)
- Diluted EPS$0.21 → $0.22 (vs. a year earlier)↑ +4.8%$0.21 → $0.22 (vs. a year earlier)
- Cash$1.11B → $1.04B (vs. previous quarter-end)↓ −6.4%$1.11B → $1.04B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 30, 2026.
Key changes
Net sales up 3.2%. Source sentence
Net sales increased 3.2% vs the prior year period, reflecting Organic sales growth of 2.9% and a foreign currency benefit of 0.3%.
Operating margin 18.2% versus 16.7%. Source sentence
Operating income margin was 18.2% vs 16.7% in the prior year period.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Kenvue Inc.
- Headquarters
- SUMMIT, NJ
- Incorporated in
- Delaware
- Fiscal year end
- 01/03
- Exchange & ticker
- NYSE: KVUE
- Industry
- Personal Care Products
- CIK
- 1944048
- Website
- https://www.kenvue.com/ ↗
Workforce (as of FY2025 year-end)
Employees
22,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 39–51 days after quarter end (Feb 17, 2026; Feb 6, 2025; Feb 8, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around January 3.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 33–51 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 27, 2026 | Oct 30, 2026 (+33 days) | Oct 30, 2026 10-Q (+33 days) |
| Q2 FY2026 | Jun 28, 2026 | Aug 6, 2026 (+39 days) | Aug 6, 2026 10-Q (+39 days) |
| Q1 FY2026 | Mar 29, 2026 | May 7, 2026 (+39 days) | May 7, 2026 10-Q (+39 days) |
| Q4 FY2025 | Dec 28, 2025 | Feb 17, 2026 (+51 days) | Feb 20, 2026 10-K (+54 days) |
| Q3 FY2025 | Sep 28, 2025 | Nov 3, 2025 (+36 days) | Nov 3, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 29, 2025 | Aug 7, 2025 (+39 days) | Aug 7, 2025 10-Q (+39 days) |
| Q1 FY2025 | Mar 30, 2025 | May 8, 2025 (+39 days) | May 8, 2025 10-Q (+39 days) |
| Q4 FY2024 | Dec 29, 2024 | Feb 6, 2025 (+39 days) | Feb 24, 2025 10-K (+57 days) |
| Q3 FY2024 | Sep 29, 2024 | Nov 7, 2024 (+39 days) | Nov 7, 2024 10-Q (+39 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 6, 2024 10-Q (+37 days) |
| Q1 FY2024 | Mar 31, 2024 | May 7, 2024 (+37 days) | May 9, 2024 10-Q (+39 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 8, 2024 (+39 days) | Mar 1, 2024 10-K (+61 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Self Care
Tylenol, Zyrtec, Nicorette
Pain relief, allergy and smoking cessation products.
Skin Health and Beauty
Neutrogena, Aveeno
Face, body and sun care.
Essential Health
Listerine, BAND-AID, Johnson’s
Oral care, wound care and baby care.
From the Form 10-K, FY2025, year ended 2025-12-28.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Consumer health
Global consumer health
U.S. share
—
Not disclosedWorldwide share
Largest pure-play by revenue
Company-disclosed“The world’s largest pure-play consumer health company by revenue.”
07
Recent strategic focusSite analysis
Recent developments.
Sale to Kimberly-Clark
Agreed in November 2025 to be acquired by Kimberly-Clark; closing expected in the second half of 2026. Kenvue holders are expected to own about 46% of the combined company. On September 28, 2026 Kimberly-Clark launched offers to exchange Kenvue's senior notes for up to $7.0B of new K-C notes and cash, and Kenvue says the combination is nearing completion.
Source: Form 10-Q (quarter ended 2026-09-27); Q3 2026 earnings release
Q3 2026
Net sales +3.2% (organic +2.9%), the fourth straight quarter of growth, led by Self Care and Essential Health; operating margin 18.2% (vs 16.7%); diluted EPS $0.22 (+5%), adjusted $0.29 (+4%).
Source: Q3 2026 earnings release
Capex ÷ D&A (FY2025)
0.85x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$475M ÷ $557M = 0.85x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
2.5%
formularesearch & development expense ÷ revenue × 100
e.g.$382M ÷ $15,124M × 100 = 2.5%
Where the money goes, over time
Unit: $M. Capex went from $295M in FY2021 to $475M in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
08
Key figures at a glanceFrom SEC data
FY2021–FY2025, 5 years.
Revenue (FY2025)
$15.12B
As reported in the 10-K
Revenue CAGR (4 years)
+0.1%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($15,124M ÷ $15,054M) ^ (1÷4) − 1 = 0.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
16.0%▼caution
-3.4pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,414M ÷ $15,124M × 100 = 16.0%
ROE (FY2025)
14.4%▲favorable
5-year average: 11.1%
As reported in the 10-K
P/B (FY2025 end)
3.06x
formulafiscal year-end closing price ÷ book value per share
e.g.$17.19 ÷ $5.62 = 3.06x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
13.6x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($32,938M + $8,524M − $1,062M) ÷ ($2,414M + $557M) = 13.6x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +0.1% a year over 4 years (modest growth)
From $15.05B in FY2021 to $15.12B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 19.4% → 16.0%
How much operating profit is left per $100 of revenue. It moved -3.4 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 39.8% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 11.1% over 5 years (latest: 14.4%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Self Care: pain care, cough/cold/allergy, smoking cessation
- Skin Health and Beauty: face, body and sun care
- Essential Health: oral care, baby care, wound care
06 · what it draws on
Key resources
- About 22,000 employees (23% North America, 28% EMEA, 30% APAC, 19% LATAM)
- Iconic brands with more than a century of heritage
- Science and healthcare professional relationships
02 · why customers buy
Value propositions
- Trusted consumer health brands (Tylenol, Neutrogena, Listerine, Aveeno, Band-Aid).
04 · how it keeps them
Customer relationships
- Consumer brands sold through retailers and pharmacies, supported by marketing.
03 · how it reaches them
Channels
- Retailers, pharmacies and e-commerce, supported by precision marketing.
01 · who it serves
Customer segments
- Mass merchants, drugstores, grocers and e-commerce (top 10 ≈41% of sales)
09 · where money goes
Cost structure
FY2025, share of revenue ($15.12B)
- Cost of revenue41.9%
- Research & development2.5%
- Selling, general & administrative40.3%
Operating profit left: 16.0% of revenue. Depreciation & amortization (inside the costs above): $557M. Capital spending: $475M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Self Care $6,378M (2025)
- Essential Health $4,632M
- Skin Health and Beauty $4,114M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Develops, markets and sells over-the-counter medicines, skin care and essential health products through retailers, pharmacies and e-commerce, relying on brand trust and healthcare professional recommendations.
01 what it draws on
Inputs & resources
- About 22,000 employees (23% North America, 28% EMEA, 30% APAC, 19% LATAM)
- Iconic brands with more than a century of heritage
- Science and healthcare professional relationships
02 what it does
Activities
- Self Care: pain care, cough/cold/allergy, smoking cessation
- Skin Health and Beauty: face, body and sun care
- Essential Health: oral care, baby care, wound care
03 who it serves
Customers
- Mass merchants, drugstores, grocers and e-commerce (top 10 ≈41% of sales)
04 how money comes in
How it earns
- Self Care $6,378M (2025)
- Essential Health $4,632M
- Skin Health and Beauty $4,114M
How the business makes money
- U.S. net sales were $6,460M of $15,124M in 2025.
- Dividends paid of $1,581M in 2025.
- About 99% of employees are full-time.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Kenvue faces price controls in some markets and FDA device rules.
Regulated prices & reimbursement
Price controls
Subject to price control laws in some markets.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Approvals & licenses
FDA clearance
Some products may require FDA 510(k) clearance.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Trade & export rules
Tariffs and trade rules
Offset inflation and tariffs through price increases.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Self Care
6,378 (42%)Essential Health
4,632 (31%)Skin Health and Beauty
4,114 (27%)
Source: Form 10-K (FY2025, year ended 2025-12-28) Segment net sales; total $15,124M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
International — 57% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
6,460 (43%)International
8,664 (57%)
Source: Form 10-K (FY2025, year ended 2025-12-28) U.S. net sales as disclosed; international = total minus U.S.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Retailers, pharmacies and e-commerce platforms.
Named by the company
Top 10 customers represented about 41% of net sales in each of 2023–2025; none is named.
Suppliers
Contract manufacturers and ingredient suppliers.
Named by the company
No material supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K describes competitors as consumer healthcare businesses, global CPG companies, regional companies and private label, without naming them.
Competitors named in the 10-K
Peer group the company chose
Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Peer companies from the 2026 proxy statement.
- The Campbell's Companysite ↗
- Church & Dwightsite ↗
- Cloroxsite ↗
- Coca-Cola Companysite ↗
- Colgate-Palmolivesite ↗
- Conagra Brandssite ↗
- Estée Lauder Companiessite ↗
- General Millssite ↗
- Hersheysite ↗
- Hormel Foodssite ↗
- J.M. Smuckersite ↗
- Kellanovasite ↗
- Keurig Dr Peppersite ↗
- Kimberly-Clarksite ↗
- Kraft Heinzsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
| Line item | FY2021In next year’s 10-K | FY2022In next year’s 10-K | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 15,054 | 14,950 | 15,444 | 15,455 | 15,124 |
| Operating income | 2,920 | 2,675 | 2,512 | 1,841 | 2,414 |
| Pretax income | 2,925 | 2,637 | 2,190 | 1,415 | 1,999 |
| Net income (attributable) | 2,078 | 2,064 | 1,664 | 1,030 | 1,470 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -0.7% | 3.3% | 0.1% | -2.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 19.4% | 17.9% | 16.3% | 11.9% | 16.0% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 13.8% | 13.8% | 10.8% | 6.7% | 9.7% |
| Balance sheet ($M) | |||||
| Total assets | — | 27,316 | 27,851 | 25,601 | 27,076 |
| Total equity | 20,491 | 19,970 | 11,211 | 9,668 | 10,765 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | — | 0 | 8,287 | 8,607 | 8,524 |
| Equity ratio | — | 73.1% | 40.3% | 37.8% | 39.8% |
| ROE | 10.1% | 10.2% | 10.7% | 9.9% | 14.4% |
| Cash flow ($M) | |||||
| Operating CF | 334 | 2,525 | 3,168 | 1,769 | 2,197 |
| Investing CF | -171 | -390 | -488 | -425 | -436 |
| Financing CF | 0 | -1,583 | -2,527 | -1,565 | -1,837 |
| Free cash flowcalccash flow from operations − capital expenditures | 39 | 2,150 | 2,699 | 1,335 | 1,722 |
| Cash and equivalents | 740 | 1,231 | 1,382 | 1,070 | 1,062 |
| Per share & other | |||||
| EPS ($) | 1.21 | 1.20 | 0.90 | 0.54 | 0.76 |
| BVPS ($) | — | — | 5.85 | 5.05 | 5.62 |
| Dividend per share ($) | — | — | 0.40 | 0.81 | 0.83 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | — | 44.4% | 150.0% | 108.6% |
| P/E (x) | — | — | 23.9 | 39.9 | 22.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | — | 15.3 | 19.8 | 13.6 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | — | — | 3.68 | 4.26 | 3.06 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-27 | $3.89B+3.2% | $706M+12.2% | $430M+8.0% | $0.22 |
| 2026-06-28 | $3.96B+3.0% | $699M+1.0% | $456M+8.6% | $0.24 |
| 2026-03-29 | $3.91B+4.5% | $767M+37.5% | $474M+47.2% | $0.25 |
| 2025-12-28 † | $3.78B+3.2% | $535M+10.8% | $330M+12.6% | — |
| 2025-09-28 | $3.76B | $629M | $398M | $0.21 |
| 2025-06-29 | $3.84B | $692M | $420M | $0.22 |
| 2025-03-30 | $3.74B | $558M | $322M | $0.17 |
| 2024-12-29 † | $3.66B | $483M | $293M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
9.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,414M × (1 − 25.5%) ÷ $18,782M × 100 = 9.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.19%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $32.94B ÷ ($32.94B + $8.52B) = 79.4%
e.g.Debt weight: $8.52B ÷ ($32.94B + $8.52B) = 20.6%
e.g.WACC: 6.8% × 79.4% + 5.0% × (1 − 25.5%) × 20.6% = 6.19%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.2%–7.5% and ROIC − WACC runs +2.1 to +4.4 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 6.19% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.34 (price-derived adjusted beta, but correlation with the market is low (R² 0.00), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 6.82%
- Cost of debt
- 5.04%
- Tax rate
- 25.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 79% : 21%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.19%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.34 (price-derived adjusted beta. Raw β 0.01, R² 0.00, 129 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.010 + 0.33 = 0.337
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.34 × 5.5% = 6.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-10-30)
2.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.2% − 3.9%
Past FCF growth (FY2021–FY2025)
+157.8%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+0.1%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $1.72B (operating CF − capex); enterprise value $44.46B = market cap $37B (latest close, 2026-10-30) + debt $8.52B − cash and short-term investments $1.06B; r = WACC of 6.2% using this page’s default assumptions (β 0.34, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$44.15B
FCF $1.72B ÷ (6.2% − 2.3%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.2% | 5.2% | 6.2% | 7.2% | 8.2% |
|---|---|---|---|---|---|
| 0% | 0.92x | 0.74x | 0.62x | 0.54x | 0.47x |
| 2% | 1.76x | 1.21x | 0.92x | 0.74x | 0.62x |
| 4% | 19.36x | 3.23x | 1.76x | 1.21x | 0.92x |
| 6% | — | — | 19.36x | 3.23x | 1.76x |
| 8% | — | — | — | — | 19.36x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-10-30) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.30x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.8%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 121%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$2,197M ÷ $1,470M = 1.49x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,414M ÷ $1,999M × 100 = 121%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,165M + $2,382M) ÷ 2 ÷ $15,124M × 365 = 55 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($1,591M + $1,666M) ÷ 2 ÷ $6,332M × 365 = 94 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 94.4%
- Directors & officers (shares)
- 1.6%
- Everyone else (est.)
- 4.0%
- Directors & officers (voting power)
- 1.6%
- Institutional-ownership rank
- 131 of 416
- Beta (adjusted)
- 0.34
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 31% of covered companies have more
above 1 = swings more than the market
- 1,813.9M shares reported by 1,007 13F filers ÷ 1,920.8M shares outstanding on 2026-07-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-08 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-31)
19
Strengths & weaknessesSite analysis
Strengths
1. Global brand leader
World’s largest pure-play consumer health company by revenue, per its 10-K.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
2. Strong brands
Portfolio of brands recommended by healthcare professionals.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
3. Earnings recovery
Net income rose to $1,470M in 2025 from $1,030M in 2024; first-half 2026 net income $930M versus $742M.
Evidence: Form 10-Q (quarter ended 2026-06-28)
Weaknesses
1. Declining sales
Net sales fell 2.1% in 2025; all three segments declined.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
2. Customer concentration
Top 10 customers represented about 41% of net sales in 2023–2025.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
3. High payout
Dividends paid ($1,581M) exceeded net income ($1,470M) in 2025.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
22.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
4.80%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
109%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
5.2%
(Operating CF − capex) ÷ market cap
1. Takeover value
Shareholders receive Kimberly-Clark stock plus cash on closing.
- What has to hold
- Deal closes as planned.
- The other side
- Value depends on Kimberly-Clark’s share price.
Evidence: Form 10-Q (quarter ended 2026-06-28)
2. Iconic brands
Trusted OTC and skin care brands.
- What has to hold
- Brands regain growth.
- The other side
- Litigation and private label pressure.
Evidence: Form 10-K (FY2025, year ended 2025-12-28)
FY2021–22 are carve-out figures from before the May 2023 IPO; share-based figures start in 2023.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.7x
$1.06B vs. $1.45B
Interest coverage (operating income ÷ interest expense)
5.6x
$2.41B vs. $430M
Free cash flow ÷ dividends paid
1.1x
$1.72B vs. $1.58B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -2.1% in FY2025 ($15.46B → $15.12B) | Not yet, as of FY2025 |
| Operating income | -26.7% in FY2024 ($2.51B → $1.84B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Stable sales base
Net sales stayed between $14.9B and $15.5B in every year 2021–2025.
Source: Form 10-K (FY2025, year ended 2025-12-28)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Kenvue’s main legal exposure is litigation alleging prenatal Tylenol (acetaminophen) use is linked to autism and ADHD, including a Texas Attorney General suit filed October 2025, alongside talc and Zantac-related matters inherited from Johnson & Johnson.
4 open matters (1 flagged as major)
Texas Attorney General Tylenol lawsuit
PendingLawsuitMajorState of Texas v. Kenvue Brands
Filed October 2025 against Kenvue Brands LLC alleging Tylenol exposure is associated with autism and ADHD in children; similar claims were made by federal officials in September 2025.
Source: Form 10-K (FY2025, year ended 2025-12-28) — Legal Proceedings
Acetaminophen citizen petitions
PendingRegulatory proceedingFDA citizen petitions
Third parties petitioned the FDA (September and November 2025) for pregnancy-related labeling changes; Kenvue asked the FDA to deny the first petition.
Source: Form 10-K (FY2025, year ended 2025-12-28) — Legal Proceedings
Aveeno Baby “hypoallergenic” CID
PendingGovernment investigationTexas Attorney General
Texas AG Civil Investigative Demand under the Deceptive Trade Practices Act about Aveeno Baby products labeled hypoallergenic.
Source: Form 10-K (FY2025, year ended 2025-12-28) — Legal Proceedings
Zantac (ranitidine) class actions in Canada
PendingClass actionPlaintiffs v. J&J / JJI
Putative class actions in Canada over Zantac/ranitidine; one naming JJI is stayed in the Quebec Superior Court.
Source: Form 10-K (FY2025, year ended 2025-12-28) — Legal Proceedings
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2025, year ended 2025-12-28) — Legal Proceedings, reviewed 2026-10-27. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Acetaminophen (Tylenol) litigation
- Company disclosure (summarized from the 10-K)
- Lawsuits incl. the Texas AG allege prenatal Tylenol exposure is linked to autism/ADHD; FDA started a label change process in September 2025.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2M&A & integration
Pending Kimberly-Clark acquisition
- Company disclosure (summarized from the 10-K)
- The merger is subject to closing conditions and creates uncertainty for employees and customers.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Competition & technology shift
Private label and competitors
- Company disclosure (summarized from the 10-K)
- Competes with consumer health businesses, global CPG companies, regional players and private label.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 4Customer/supplier concentration
Retailer bargaining power
- Company disclosure (summarized from the 10-K)
- Large-format customers have significant bargaining strength.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Law & regulation
Product safety (talc, phenylephrine)
- Company disclosure (summarized from the 10-K)
- Concerns about ingredients can lead to litigation, recalls or reformulation.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
• If the Proposed Transaction is consummated, the combined company may not perform as expected and may fail to realize the projected benefits and cost savings of the Proposed Transaction, which could adversely affect the value of K-C common stock, which our current shareholders will own following the completion of the Proposed Transaction.
• The number of shares of K-C common stock issuable in the First Merger in respect of one share of our common stock is fixed and will not be adjusted. Read more
Because the market price of K-C common stock may fluctuate, our shareholders cannot be sure of the market value of the stock consideration they will receive in exchange for their shares.
• If the Proposed Transaction fails to qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), our shareholders may pay additional U.S. Read more
federal income taxes.
• The Proposed Transaction may result in a loss of customers, distributors, service providers, suppliers, vendors, joint venture participants, and other business counterparties and may result in the termination of existing contracts.
If the Proposed Transaction is consummated, the combined company may not perform as we or the market expects and may fail to realize the projected benefits and cost savings of the Proposed Transaction, which could adversely affect the value of K-C common stock, which our shareholders will own following the completion of the Proposed Transaction.
The success of the Proposed Transaction will depend, in part, on K-C’s ability to realize the anticipated benefits and cost savings from combining our and K-C’s respective businesses, including operational and other synergies that we believe the combined company will be able to achieve. The anticipated benefits and cost savings of the Proposed Transaction may not be realized fully or at all, may take longer to realize than expected, or could have other adverse effects that we do not currently foresee. Risks associated with the combined company following the Proposed Transaction include:
• the integration process will require significant time and focus from management following the Proposed Transaction and may, for the combined company, result in the loss of key employees, the disruption of ongoing businesses, or inconsistencies in standards, controls, procedures, and policies;
• key employees might decide not to remain with the combined company after the Proposed Transaction is completed, and the loss of key personnel could adversely affect the combined company’s results of operations, financial condition, and growth prospects;
No longer in the text (4)
• We are subject to restrictions on our business, potential tax-related liabilities (such as joint and several liability with J&J for its U.S. Read more
federal consolidated group tax return for periods prior to the date of the completion of the Exchange Offer) and potential tax-related indemnification obligations to J&J for taxes attributable to our business and, under certain circumstances, taxes arising in connection with the Separation and the subsequent distribution or other disposition by J&J of the shares of Kenvue common stock owned by J&J following the Kenvue IPO.
Our operations and presence in Russia and Ukraine are limited. Read more
For quantification of the impact of Russian and Ukrainian operations and presence on our Net sales and assets, refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Results” in Part II, Item 7 included herein.
We cannot predict with certainty the long-term effect that the Separation will have on our brands and our reputation. Read more
Although we typically rely on product branding more than corporate branding for marketing purposes, we have historically been able to capitalize on J&J’s market reputation, performance, and brand identity as part of our relationships with consumers, customers, and third-party partners. In connection with the Separation, we have incurred, and will continue to incur, substantial costs to rebrand our company as “Kenvue” and change the branding and trade dress for certain of our products around the world. Successful promotion of this rebranding will depend on the effectiveness of our marketing efforts and our ability to continue to provide reliable products to consumers and customers during the course of our transition. We have invested, and will continue to invest, to…
In particular, our day-to-day business operations, including a significant portion of the communications among our customers, manufacturers, suppliers and other third-party partners, rely on Technology Systems. Read more
J&J’s Technology Systems are complex, and we expect the transfer of Technology Systems from J&J to us to continue to be complex, time-consuming, and costly. There is also a risk of data loss in the process of transferring Technology Systems. As a result of our reliance on Technology Systems, the cost of the information technology integration and transfer and any loss of key data could have an adverse effect on our business, results of operations, or financial condition.
50 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 20, 2026 ↗ with the 10-K filed Feb 24, 2025 ↗.
25
What to watch going forwardSite analysis
- Closing of the Kimberly-Clark acquisition.
- Tylenol litigation and FDA labeling decisions.
- Organic sales trends by segment.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 26, 2026 15:13 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Built on10-K FY2025 · filed 2026-02-20Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Kenvue’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.