German entrepreneurs also tend to make efficiency, excellence and respect for employees their foremost priority. Full details of the results are available in https://forex-review.net/ a separate press release issued this morning by Johnson & Johnson. “We do this from a position of strength. Kenvue is a healthy business,” Mongon told CNBC.
- The development of this product demonstrates how Kenvue boldly pursues innovative ways to work, creating solutions that can genuinely improve people’s lives.
- Shares are down more than 20% since it came public, driving its dividend yield up to 3.8%.
- The company noted it will own 1.7 billion shares of Kenvue’s common stock after the IPO, representing 91.9% of the spinoff’s total shares.
- Goldman Sachs, JPMorgan Chase and Bank of America are the leading underwriters for the IPO, the company said in its preliminary prospectus filed with the Securities and Exchange Commission.
In this scenario, Kenvue would earn $24.0 billion in revenue in 2029, or 1.6x its 2022 revenue, and $3.8 billion in NOPAT, or 1.3x its 2022 NOPAT. This scenario implies Kenvue grows NOPAT by 7% compounded annually through 2029. For reference, Kenvue’s NOPAT has actually fallen 5% compounded annually since 2020. This scenario also implies Kenvue grows revenue at the industry growth rate, i.e. 7%, which is much higher than the 2% compound annual revenue growth rate Kenvue has achieved since 2020.
A new view of care
We’ve invested in a variety of low-carbon energy sources such as purchasing green electricity from the grid or generating our own renewable electricity on site. Last year, we used approximately 414,300 megawatt hours (MWh) of renewable electricity – more than 46% of our total electricity usage. This accomplishment was in large part due to our solar arrays at our facilities around the globe. This press release is neither an offer to sell nor a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
The company is exclusively focused on developing and producing pharmaceutical prescription drugs and medical device technologies. As a 130-year-old surgical dressing and baby products company, its most popular products include Band-Aids, Tylenol and Johnson’s Baby Powder. In this context, one should also keep in mind Johnson & Johnson’s rock-solid balance sheet, which gives the company enormous flexibility in terms of acquisitions. I think it is worth remembering that the company acquired Abiomed for almost $17 billion at the end of 2022 and that the transaction is not really recognizable from a debt perspective just nine months later.
Kenvue Healthy Lives Mission Goals & Commitments
While that sounds hefty, I think it’s manageable, and it’s also worth keeping in mind the time value of money, as the settlement – after it’s finally reached – will likely be paid out over more than two decades. Competition is fierce, certainly, with private label adoption one obvious concern. The strong profit margins and relatively moderate capital expenditures (2.5% of revenue in 2022, though it was closer to 2% the year before) also support the idea that this simply is an attractive business to own.
In this scenario, Kenvue’s revenue would still grow to $19.7 billion in 2029, or 4% compounded annually. This scenario also implies the company would earn $3.1 billion in NOPAT and grow NOPAT 4% compounded annually through 2029. In other words, even if Kenvue improves margins and grows revenue at the high end of management’s estimate, the stock is worth only $18/share. For reference, Kenvue’s economic book value, or no growth value, is $14/share.
For example, the creation of BAND-AID® Brand HYDRO SEAL™ acne blemish patches was born out of viral social media skincare trends. The development of this product demonstrates how Kenvue boldly pursues innovative ways to work, creating solutions that can genuinely improve people’s lives. With empathy, we unearth extraordinary breakthroughs in everyday care, and with courage and conviction, we bring them to life. We boldly pursue more innovative ways of working, pioneer solutions that improve lives, and create products that create categories — then improve them again and again. In 2022, Consumer Health generated sales of $15.0 billion, with a focus on OTC products (over-the-counter products, 40% of segment sales), but was generally quite well diversified (Figure 1).
I’m Putting My Cash Stockpile to Work on These 3 Stocks
Swedish agencies such as Vinnova and the Knowledge Foundation play an important part in Swedish innovation and development as well. The former promotes, funds and supports research in fields ranging from healthcare to heavy industry while the latter funds both research and competence development at colleges and universities. In addition to healthcare, the Swiss government invests heavily in research and development across multiple sectors. As a result, even though its population totals just over 8.7 million, Switzerland holds the world’s third-highest number of patents per capita, just behind the United States and Japan. Usage of the new company logo and corporate brand identity will be effective upon completion of the planned separation.
Johnson & Johnson: Is The Dividend Still Safe After The Kenvue Split-Off?
This segment includes brands such as Tylenol, Zyrtec, Nicorette, Listerine, Aveeno, Johnson’s, Neutrogena and many more. Thibaut Mongon, J&J’s executive vice president and worldwide chair of consumer health, will serve as CEO and director lexatrade review of Kevnue prior to the completion of the IPO, the company said in the filing. In the meantime, however, the case simply doesn’t look quite strong enough, particularly with a flood of shares coming to market within the next 12 months.
While the United States is still the largest market by revenue, Europe, Middle East, and Africa (EMEA) and Asia Pacific (APAC) each represent 21% of revenue in 2022, per Figure 2. Such geographic diversity positions the company to grow strongly as consumers in emerging markets attain greater spending power. After the completion of the IPO, Johnson & Johnson will own 1,716,160,000 shares of Kenvue’s common stock, representing 90.9% of the total outstanding shares of Kenvue’s common stock (or 89.6% if the underwriters exercise in full their over-allotment option). This is particularly relevant in the case of healthcare products, which are subject to some of the most stringent and complex regulatory frameworks in the world.
Sweden, for instance, has placed considerable importance on both education and research since the mid-19th century. Thanks to measures such as free post-secondary education for Swedish citizens, the country ranks just behind Switzerland and Japan as having the world’s most educated population. It also invests more than 3 percent of its annual GDP in research and development. As noted by Forbes, German business culture demands continuous improvement, eschewing static design and safety in favor of disruptive ideas.
Skin health and beauty products accounted for $4.4 billion in net sales last year, or 29% of overall revenue. Among those products are shampoos, conditioners, hair loss treatments and skin care. J&J plans to distribute the remaining shares of common stock to its shareholders later this year. The oil giant’s stock has fallen about 20% over the last 12 months, weighed down by oil prices and its pending acquisition of rival Hess. However, that sell-off has Chevron trading at an attractive dividend yield (4.2%) and value (given the growth it can deliver at lower oil prices).
As I explained in another article, the split-off won’t protect the parent company from talc liabilities in the U.S. and Canada (the lion’s share), but it may have nonetheless played a role in the process of managing them. In a later article, I shared my outlook amid the ongoing litigation by conservatively modeling the impact of the talc litigation on the discounted cash flow valuation of JNJ stock. In early May, J&J held an initial public offering for Kenvue, in which just over 10% of shares in the new company were sold (including the underwriters’ option).
Only our “novel database” enables investors to overcome those flaws and apply reliable fundamental data in their research. I present an additional DCF scenario to highlight the downside potential in the stock should Kenvue grow sales at management’s expectation, which is lower than third-party estimates. More specifically, Kenvue’s competitors include the likes of Bayer Consumer health, Procter & Gamble
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, Sanofi Consumer Healthcare (SNY), L’Oréal, Unilever
UL
, Colgate-Palmolive
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, Kimberly Clark (KMB), and more. Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic’s periodic reports on file with the U.S. The 2024 Schwab Foundation Social Innovation Awards recognize 16 organizations, joining a global community of 477 change-makers directly improving the lives of 891 million people. The Schwab Foundation for Social Entrepreneurship was founded in 1998 by Hilde and Klaus Schwab.
“Building on the legacy of Thermage CPT, which has been serving Chinese institutions and consumers effectively since 2015, we look forward to delivering the Thermage FLX proven technology to the Chinese market.” Prior to making any investment decision, it is recommended that readers consult directly with Principal Technologies and seek advice from a qualified investment advisor. A savvy investor can take full advantage of this situation, and that’s precisely what Principal Technologies is doing. It plans to acquire proven healthcare investments in the lower-cost EU market, then bring them to North America.
I sold a few losing positions while allowing my dividends and cash transfers to accumulate so that my cash position is now more than 5% of my portfolio’s value. Despite the Kenvue split-off and ongoing talc litigation, the safety of JNJ’s dividend appears to remain intact. Lastly, note JNJ’s appetite for acquisitions – the most recent being that of antibody-drug conjugate (ADC) specialist Ambrx Biopharma Inc. (AMAM) for $1.9 billion (enterprise value, EV), a year after acquiring Abiomed, Inc. (ABMD) for $16.6 billion (EV). Concerning the latest acquisition, I recommend you read the (very good and detailed) review by fellow analyst Edmund Ingham. While AMAM will certainly improve JNJ’s position in the increasingly important (but also highly competitive) ADC space, it comes with execution and integration risks and consequently the risk of a poor return on investment.