Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. More Details
Established dividend payer with acceptable track record.
Share Price & News
How has Johnson & Johnson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: JNJ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: JNJ's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: JNJ underperformed the US Pharmaceuticals industry which returned 8.9% over the past year.
Return vs Market: JNJ underperformed the US Market which returned 53.9% over the past year.
Long-Term 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
1 day ago | Simply Wall StJohnson & Johnson's (NYSE:JNJ) CEO Compensation Is Looking A Bit Stretched At The Moment
5 days ago | Simply Wall StAre Institutions Heavily Invested In Johnson & Johnson's (NYSE:JNJ) Shares?
2 weeks ago | Simply Wall StDo Fundamentals Have Any Role To Play In Driving Johnson & Johnson's (NYSE:JNJ) Stock Up Recently?
Is Johnson & Johnson undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: JNJ ($162.24) is trading below our estimate of fair value ($243.17)
Significantly Below Fair Value: 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 (29x) compared to the US Pharmaceuticals industry average (27.7x).
PE vs Market: JNJ is poor value based on its PE Ratio (29x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: JNJ is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: JNJ is overvalued based on its PB Ratio (6.7x) compared to the US Pharmaceuticals industry average (3.8x).
How is Johnson & Johnson forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JNJ's forecast earnings growth (9.6% per year) is above the savings rate (2%).
Earnings vs Market: JNJ's earnings (9.6% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: JNJ's earnings are forecast to grow, but not significantly.
Revenue vs Market: JNJ's revenue (4.4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: JNJ's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: JNJ's Return on Equity is forecast to be high in 3 years time (36.4%)
How has Johnson & Johnson performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JNJ has high quality earnings.
Growing Profit Margin: JNJ's current net profit margins (17.8%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: JNJ's earnings have grown by 0.8% per year over the past 5 years.
Accelerating Growth: JNJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: JNJ had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-1.8%).
Return on Equity
High ROE: JNJ's Return on Equity (23.3%) is considered high.
How is Johnson & Johnson's financial position?
Financial Position Analysis
Short Term Liabilities: JNJ's short term assets ($51.2B) exceed its short term liabilities ($42.5B).
Long Term Liabilities: JNJ's short term assets ($51.2B) do not cover its long term liabilities ($69.1B).
Debt to Equity History and Analysis
Debt Level: JNJ's debt to equity ratio (55.7%) is considered high.
Reducing Debt: JNJ's debt to equity ratio has increased from 28.3% to 55.7% over the past 5 years.
Debt Coverage: JNJ's debt is well covered by operating cash flow (66.7%).
Interest Coverage: JNJ's interest payments on its debt are well covered by EBIT (222.4x coverage).
What is Johnson & Johnson current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: JNJ's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: JNJ's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: JNJ's dividends per share have been stable in the past 10 years.
Growing Dividend: JNJ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (71.2%), JNJ's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: JNJ's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alex Gorsky (60 yo)
Mr. Alex Gorsky has been the Chairman and Chief Executive Officer of Johnson & Johnson since December 28, 2012 and April 26, 2012 respectively. Mr. Gorsky served as the Chief Operating Officer and Head of ...
CEO Compensation Analysis
Compensation vs Market: Alex's total compensation ($USD29.58M) is above average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.
Experienced Management: JNJ's management team is seasoned and experienced (8.5 years average tenure).
Experienced Board: JNJ's board of directors are considered experienced (7.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Johnson & Johnson's company bio, employee growth, exchange listings and data sources
- Name: Johnson & Johnson
- Ticker: JNJ
- Exchange: NYSE
- Founded: 1886
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$427.146b
- Shares outstanding: 2.63b
- Website: https://www.jnj.com
Number of Employees
- Johnson & Johnson
- One Johnson & Johnson Plaza
- New Brunswick
- New Jersey
- United States
Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. It operates through three segments: Consumer Health, Pharmaceutical, and Medical D...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:10|
|End of Day Share Price||2021/04/16 00:00|
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.