Starboard Value Sees Kenvue (KVUE) Undervalued, Urges Stronger Execution and Margin Recovery to Unlock Shareholder Value

Starboard’s October 2024 Kenvue presentation argues that the company owns one of the strongest consumer health brand portfolios (Tylenol, Band-Aid, Listerine, Neutrogena, etc.) but trades at the lowest valuation multiple among peers despite defensible categories and attractive end markets. While self-care and essential health segments are performing well, Skin Health & Beauty has underperformed due to weak execution and legacy neglect under J&J ownership, dragging down consolidated growth and margins. Starboard believes Kenvue can revitalize this segment through stronger marketing, innovation, and social media-driven strategies—similar to CeraVe’s success—and restore margins to peer levels. With consistent execution, the firm sees Kenvue’s valuation multiple rising toward peers, making the stock a compelling opportunity with asymmetric upside.