NYSE:JNJ

Stock Analysis Report

Executive Summary

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Johnson & Johnson's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

JNJ

-0.06%

US Pharmaceuticals

0.4%

US Market


1 Year Return

-8.2%

JNJ

-8.0%

US Pharmaceuticals

6.9%

US Market

Return vs Industry: JNJ matched the US Pharmaceuticals industry which returned -8% over the past year.

Return vs Market: JNJ underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

JNJIndustryMarket
7 Day-2.8%-0.06%0.4%
30 Day-1.9%-0.9%-1.1%
90 Day-2.0%-1.7%-0.5%
1 Year-5.6%-8.2%-5.8%-8.0%9.3%6.9%
3 Year22.0%12.6%18.3%10.0%45.8%36.4%
5 Year42.0%23.8%22.1%9.2%62.9%45.1%

Price Volatility Vs. Market

How volatile is Johnson & Johnson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson & Johnson undervalued compared to its fair value and its price relative to the market?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: JNJ ($127.7) is trading below our estimate of fair value ($253.23)

Significantly Undervalued: JNJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JNJ is poor value based on its PE Ratio (19.6x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: JNJ is poor value based on its PE Ratio (19.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: JNJ is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: JNJ is overvalued based on its PB Ratio (5.6x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Johnson & Johnson forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNJ's forecast earnings growth (6.9% per year) is above the savings rate (2.7%).

Earnings vs Market: JNJ's earnings (6.9% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: JNJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: JNJ's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: JNJ's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: JNJ's Return on Equity is forecast to be high in 3 years time (32.8%)


Next Steps

Past Performance

How has Johnson & Johnson performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JNJ's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: JNJ's earnings growth over the past year (1017.4%) exceeds its 5-year average (-10.4% per year).

Earnings vs Industry: JNJ earnings growth over the past year (1017.4%) exceeded the Pharmaceuticals industry 24.3%.


Return on Equity

High ROE: JNJ's Return on Equity (28.3%) is considered high.


Return on Assets

ROA vs Industry: JNJ has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: JNJ has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Johnson & Johnson's financial position?


Financial Position Analysis

Short Term Liabilities: JNJ's short term assets ($41.8B) exceeds its short term liabilities ($31.4B)

Long Term Liabilities: JNJ's short term assets (41.8B) do not cover its long term liabilities (63.0B)


Debt to Equity History and Analysis

Debt Level: JNJ's debt to equity ratio (48.4%) is considered high

Reducing Debt: JNJ's debt to equity ratio has increased from 20.1% to 48.4% over the past 5 years.

Debt Coverage: JNJ's debt is well covered by operating cash flow (74.8%).

Interest Coverage: JNJ's interest payments on its debt are well covered by EBIT (1916.9x coverage).


Balance Sheet

Inventory Level: JNJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: JNJ's debt is covered by short term assets (assets are 1.420810x debt).


Next Steps

Dividend

What is Johnson & Johnson's current dividend yield, its reliability and sustainability?

2.97%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JNJ's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: JNJ's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: JNJ's dividends per share have been stable in the past 10 years.

Growing Dividend: JNJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), JNJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JNJ's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).


Next Steps

Management

What is the CEO of Johnson & Johnson's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Alex Gorsky (59yo)

7.5yrs

Tenure

US$20,097,572

Compensation

Mr. Alex Gorsky has been the Chairman and Chief Executive Officer of Johnson & Johnson since December 28, 2012 and April 26, 2012 respectively. Mr. Gorsky served as the Chief Operating Officer and Head of  ...


CEO Compensation Analysis

Compensation vs. Market: Alex's total compensation ($USD20.10M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.0yrs

Average Tenure

57yo

Average Age

Experienced Management: JNJ's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: JNJ's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$419,04011 Jun 19
Marillyn Hewson
EntityIndividual
Shares3,000
Max PriceUS$139.68
BuyUS$100,05017 Dec 18
Anne Mulcahy
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares748
Max PriceUS$133.76
BuyUS$133,91017 Dec 18
William Perez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$133.91
BuyUS$268,73117 Dec 18
Charles Prince
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$134.37
SellUS$536,63814 Dec 18
Ronald Kapusta
EntityIndividual
Role
Chief Accounting Officer
Controller & Chief Accounting Officer
Shares3,643
Max PriceUS$147.31
SellUS$1,225,20009 Nov 18
Ronald Kapusta
EntityIndividual
Role
Chief Accounting Officer
Controller & Chief Accounting Officer
Shares8,441
Max PriceUS$145.15

Ownership Breakdown


Management Team

  • Paul Stoffels (57yo)

    Chief Scientific Officer

    • Tenure: 7yrs
    • Compensation: US$10.59m
  • Mike Ullmann (60yo)

    Executive VP & General Counsel

    • Tenure: 7.8yrs
    • Compensation: US$5.34m
  • Alex Gorsky (59yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: US$20.10m
  • Michael Sneed

    Executive VP of Global Corporate Affairs & Chief Communication Officer

    • Tenure: 7.8yrs
  • Guy Lebeau

    Group Chairman of MD&D Business - EMEA

    • Tenure: 0yrs
  • Joaquin Duato (56yo)

    Vice Chairman of Executive Committee

    • Tenure: 8.8yrs
    • Compensation: US$9.28m
  • Peter Fasolo (56yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 3.5yrs
    • Compensation: US$3.62m
  • Ron Kapusta (60yo)

    Controller & Chief Accounting Officer

    • Tenure: 4yrs
  • Joe Wolk (52yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$2.71m
  • Chris DelOrefice

    Vice President of Investor Relations

    • Tenure: 1.2yrs

Board Members

  • Bill Perez (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$339.94k
  • Ron Williams (70yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$339.94k
  • Chuck Prince (69yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$339.94k
  • D. Davis (67yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$324.94k
  • Anne Mulcahy (67yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$354.94k
  • Ian Edward Davis (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$299.94k
  • Alex Gorsky (59yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: US$20.10m
  • Mark McClellan (55yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$299.94k
  • Mary Beckerle (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$339.94k
  • A. Washington (68yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$319.94k

Company Information

Johnson & Johnson's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson & Johnson
  • Ticker: JNJ
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$337.021b
  • Shares outstanding: 2.64b
  • Website: https://www.jnj.com

Number of Employees


Location

  • Johnson & Johnson
  • One Johnson & Johnson Plaza
  • New Brunswick
  • New Jersey
  • 8933
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JNJXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
JNJNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
JNJ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
JNJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
JNJSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
JNJBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
JNJBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
JNJSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
JNJWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
JNJBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP O.20 ORD SHSARARSJan 2001
JNJB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHSBRBRLAug 2012

Biography

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceuti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:37
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.