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KVUE (Kenvue) Beneish M-Score : -2.59 (As of Oct. 31, 2024)


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What is Kenvue Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Kenvue's Beneish M-Score or its related term are showing as below:

KVUE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Med: -2.98   Max: -2.59
Current: -2.59

During the past 5 years, the highest Beneish M-Score of Kenvue was -2.59. The lowest was -3.33. And the median was -2.98.


Kenvue Beneish M-Score Historical Data

The historical data trend for Kenvue's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kenvue Beneish M-Score Chart

Kenvue Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - - -3.33

Kenvue Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -3.29 -3.33 -2.66 -2.59

Competitive Comparison of Kenvue's Beneish M-Score

For the Household & Personal Products subindustry, Kenvue's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kenvue's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kenvue's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kenvue's Beneish M-Score falls into.



Kenvue Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Kenvue for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0175+0.528 * 0.9609+0.404 * 0.9917+0.892 * 1.0036+0.115 * 1.0715
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0634+4.679 * -0.018833-0.327 * 1.0394
=-2.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $2,797 Mil.
Revenue was 4000 + 3894 + 3666 + 3915 = $15,475 Mil.
Gross Profit was 2365 + 2242 + 2043 + 2250 = $8,900 Mil.
Total Current Assets was $5,881 Mil.
Total Assets was $26,443 Mil.
Property, Plant and Equipment(Net PPE) was $2,004 Mil.
Depreciation, Depletion and Amortization(DDA) was $617 Mil.
Selling, General, & Admin. Expense(SGA) was $6,331 Mil.
Total Current Liabilities was $5,937 Mil.
Long-Term Debt & Capital Lease Obligation was $7,139 Mil.
Net Income was 58 + 296 + 327 + 438 = $1,119 Mil.
Non Operating Income was -557 + -139 + -13 + -25 = $-734 Mil.
Cash Flow from Operations was 440 + 287 + 950 + 674 = $2,351 Mil.
Total Receivables was $2,739 Mil.
Revenue was 4011 + 3852 + 3767 + 3789 = $15,419 Mil.
Gross Profit was 2225 + 2125 + 2046 + 2125 = $8,521 Mil.
Total Current Assets was $6,219 Mil.
Total Assets was $27,542 Mil.
Property, Plant and Equipment(Net PPE) was $1,832 Mil.
Depreciation, Depletion and Amortization(DDA) was $618 Mil.
Selling, General, & Admin. Expense(SGA) was $5,932 Mil.
Total Current Liabilities was $5,299 Mil.
Long-Term Debt & Capital Lease Obligation was $7,804 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2797 / 15475) / (2739 / 15419)
=0.180743 / 0.177638
=1.0175

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(8521 / 15419) / (8900 / 15475)
=0.55263 / 0.575121
=0.9609

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (5881 + 2004) / 26443) / (1 - (6219 + 1832) / 27542)
=0.701811 / 0.707683
=0.9917

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=15475 / 15419
=1.0036

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(618 / (618 + 1832)) / (617 / (617 + 2004))
=0.252245 / 0.235406
=1.0715

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(6331 / 15475) / (5932 / 15419)
=0.409111 / 0.38472
=1.0634

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((7139 + 5937) / 26443) / ((7804 + 5299) / 27542)
=0.494498 / 0.475746
=1.0394

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1119 - -734 - 2351) / 26443
=-0.018833

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Kenvue has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.


Kenvue Business Description

Traded in Other Exchanges
Address
199 Grandview Road, Skillman, NJ, USA, 08558
Kenvue is the world's largest pure-play consumer health company by sales, generating $15 billion in annual revenue. Formerly known as Johnson & Johnson's consumer segment, Kenvue spun off and went public in May 2023. It operates in a variety of silos within consumer health, such as cough, cold and allergy care, pain management, face and body care, and oral care, as well as women's health. Its portfolio includes a wide array of some of the most well-known brands in the space, including Tylenol, Listerine, Johnson's, Aveeno, and Neutrogena. Despite playing in a fragmented industry with intense competition and ever-changing consumer preferences, many of Kenvue's brands are the global leader in their respective segment thanks to their strong brand power.
Executives
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Seemantini Godbole director 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Bing Xie officer: Group President, Asia Pacific 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Donna Lorenson officer: Chief Corp Affairs Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Matthew Orlando officer: General Counsel 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Luani Alvarado officer: Chief People Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Jan Meurer officer: Chief Growth Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Carlton Lawson officer: Group President, EMEA 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Caroline Tillett officer: Chief Scientific Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Bernardo Tavares officer: Chief Tech & Data Officer 199 GRANDVIEW ROAD, SKILLMAN NJ 08558
Tamara Franklin director 107 STONE CLIFF ROAD, PRINCETON NJ 08540
Betsy D Holden director DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Kathy Widmer officer: Group President, NALA C/O ELIZABETH ARDEN, INC., 2400 S.W. 145 AVENUE, MIRAMAR FL 33027
Michael E Sneed director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Joseph J Wolk director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933