Loading...

Johnson & Johnson

NYSE:JNJ
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JNJ
NYSE
$349B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
2018/02/24
Company description

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


Add to Portfolio Compare Print Invest
SHARE PRICE
3 Month History
JNJ
Industry
5yr Volatility vs Market

Value

 Is Johnson & Johnson undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Johnson & Johnson to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

  • The current share price of Johnson & Johnson is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Johnson & Johnson's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Johnson & Johnson's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Johnson & Johnson is overvalued based on earnings compared to the US Pharmaceuticals industry average.
  • Johnson & Johnson is overvalued based on earnings compared to the US market.
Price based on expected Growth
Does Johnson & Johnson's expected growth come at a high price?
  • Johnson & Johnson is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Johnson & Johnson's assets?
  • Johnson & Johnson is overvalued based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Johnson & Johnson's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Johnson & Johnson has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (1390.93%).

    Full details on the Value part of the Simply Wall St company analysis model.
X
Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Johnson & Johnson is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
$84,225

Terminal Value

Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = $22,178 × (1 + 2.47%) ÷ (8.49% – 2.47%)

Terminal value based on the Perpetuity Method where growth (g) = 2.47%:
$377,250

Present value of terminal value:
$250,958

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
$335,182 = $84,225 + $250,958

Value = Total value / Shares Outstanding ($335,182 / 2,683)

Discount to Share Price

Value per share:
$124.93

Current discount (share price of $132.02): -5.67%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($348,535,740,750).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

0.595 = 0.561 (1 + (1- 40%) (10.15%))

Levered Beta used in calculation = 0.8



Assumptions
  1. The risk free rate of 2.47% is from the 10 year government bond rate in USD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.53%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Johnson & Johnson expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Johnson & Johnson expected to grow at an attractive rate?
  • Johnson & Johnson's earnings growth is expected to exceed the low risk savings rate of 4.5%.
Growth vs Market Checks
  • Johnson & Johnson's earnings growth is expected to exceed the US market average.
  • Johnson & Johnson's revenue growth is positive but not above the US market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Johnson & Johnson's earnings are expected to grow significantly at over 20% yearly.
  • Johnson & Johnson's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Johnson & Johnson is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Johnson & Johnson's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the US market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the US market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Johnson & Johnson has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Johnson & Johnson's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Johnson & Johnson's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Johnson & Johnson's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Johnson & Johnson's 1-year earnings growth is negative, it can't be compared to the US Pharmaceuticals industry average.
Earnings and Revenue History
Johnson & Johnson's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Johnson & Johnson has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Johnson & Johnson used its assets less efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.
  • Johnson & Johnson's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Johnson & Johnson's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Johnson & Johnson has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Johnson & Johnson's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Johnson & Johnson's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Johnson & Johnson is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Johnson & Johnson's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Johnson & Johnson's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Johnson & Johnson's level of debt (47.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24.9% vs 47.8% today).
  • Debt is well covered by operating cash flow (61.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35x coverage).
X
Financial health checks
We assess Johnson & Johnson's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Johnson & Johnson has a total score of 3/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.55%
Current annual income from Johnson & Johnson dividends. Estimated to be 2.93% next year.
If you bought $2,000 of Johnson & Johnson shares you are expected to receive $51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Johnson & Johnson's dividend is above the low risk savings rate (2.25%).
  • Johnson & Johnson's dividend is below the markets top dividend payers (3.18%).
Upcoming dividend payment

Purchase Johnson & Johnson on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Johnson & Johnson's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by net profit (0.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (2.2x coverage).
X
Income/ dividend checks
We assess Johnson & Johnson's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Johnson & Johnson afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Johnson & Johnson has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alex Gorsky, image provided by Google.
Alex Gorsky
COMPENSATION $26,871,720
AGE 57
TENURE AS CEO 5.8 years
CEO Bio

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 General Medicines at Novartis Pharmaceuticals Corporation from May 2004 to February 2008. He also served as the Chief Executive Officer of Novartis Pharmaceuticals from 2005 to February 2008 and as its Head of Pharma North America since 2005. He was responsible for North American pharmaceutical operations of NPC which includes both the United States and Canada. He served as Chief Executive of U.S at Novartis Corporation until February 2008. He served as Head of USA Pharmaceutical Business at Novartis AG until April 2008. He served as Worldwide Chairman of Surgical Care Group at Johnson & Johnson since January 1, 2009 until September 2009. He served for 15 years in various sales, marketing and management roles with Janssen Pharmaceutica, a Johnson & Johnson unit. He first joined Johnson & Johnson in 1988. In 2001, he was appointed President of Janssen's U.S. operations/president of Janssen Pharmaceutical Inc. As leader of Janssen's management board, Mr. Gorsky had responsibility for all of its functional areas, including: administration and community affairs; finance; human resources; information management; marketing; medical affairs; public relations; sales and process excellence. He began his pharmaceutical career as a sales representative and held various roles of increasing responsibility in sales, marketing and general management. He also oversaw the launches of Aciphex(R), a proton pump inhibitor for GI disorders and Reminyl(R), a treatment for Alzheimer's disease. Mr. Gorsky left Johnson & Johnson in 2004 to join the Novartis Pharmaceuticals Corporation. He served as Worldwide Chairman of the Surgical Care Group at Johnson & Johnson since 2009 and Worldwide Chairman of the Medical Devices and Diagnostics Group since September 2009. He served as Company Group Chairman of Johnson & Johnson's pharmaceutical business in Europe, the Middle East and Africa since 2003. He served for six years in the U.S. Army, finishing his career with the rank of Captain. During that same time, he earned the Ranger Tab, Airborne Wings and served in Europe, the United States and Panama. His landmark achievements at Janssen include the commercialization of blockbusters Risperdal(R), an atypical anti-psychotic medicine and Duragesic(R) for pain. Mr. Gorsky served as Company Group Chairman of for Ethicon Inc. since 2008. Mr. Gorsky has been a Director of Johnson & Johnson since April 26, 2012. He has been a Director at International Business Machines Corporation since September 1, 2014. He serves on the board of AdvaMed, the U.S. trade association for the medical device and diagnostics industry. He is an Executive Sponsor of two Johnson & Johnson affinity groups, the Women's Leadership Initiative and the Veteran's Leadership Council. He is actively involved in the National Alliance for the Mentally Ill, the National Alliance on Aging, the Philadelphia College of Pharmacy, the Doylestown Hospital Board, the Boy Scouts of America and as a Youth League Coach for Lacrosse. Mr. Gorsky also serves on the boards of the Travis Manion Foundation, the Congressional Medal of Honor Foundation, the National Academy Foundation and the Wharton Board of Overseers. He is a member of the Business Roundtable and The Business Council. A longtime advocate of diversity and inclusion, Mr. Gorsky was named the 2009 Mentor of the Year by the Healthcare Businesswomen's Association. Mr. Gorsky holds a Bachelor's of science degree from the U.S. Military Academy in West Point, N.Y., in 1982. He obtained a Master of Business Administration degree from The Wharton School of the University of Pennsylvania in 1996.

CEO Compensation
  • Alex's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Alex's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Johnson & Johnson management team in years:

5.2
Average Tenure
56.6
Average Age
  • The average tenure for the Johnson & Johnson management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alex Gorsky

TITLE
Chairman & CEO
COMPENSATION
$27M
AGE
57
TENURE
5.8 yrs

Dominic Caruso

TITLE
Executive VP & CFO
COMPENSATION
$11M
AGE
59
TENURE
11.1 yrs

Paul Stoffels

TITLE
Executive VP & Chief Scientific Officer
COMPENSATION
$13M
AGE
55
TENURE
5.3 yrs

Joaquin Duato

TITLE
Executive VP & Worldwide Chairman of Pharmaceuticals
COMPENSATION
$10M
AGE
54
TENURE
7.1 yrs

Sandi Peterson

TITLE
Executive VP & Group Worldwide Chairman
COMPENSATION
$9M
AGE
58
TENURE
5.2 yrs

Ron Kapusta

TITLE
Controller & Chief Accounting Officer
AGE
58
TENURE
2.3 yrs

Joe Wolk

TITLE
Vice President of Investor Relations
TENURE
1.5 yrs

Mike Ullmann

TITLE
Executive VP & General Counsel
COMPENSATION
$6M
AGE
58
TENURE
6.1 yrs

Michael Sneed

TITLE
Worldwide VP of Global Corporate Affairs & Chief Communication Officer
TENURE
6.1 yrs

Peter Fasolo

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$4M
AGE
54
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Johnson & Johnson board of directors in years:

6.4
Average Tenure
63.4
Average Age
  • The tenure for the Johnson & Johnson board of directors is about average.
Board of Directors

Chuck Prince

TITLE
Independent Director
COMPENSATION
$315K
AGE
67
TENURE
12 yrs

Alex Gorsky

TITLE
Chairman & CEO
COMPENSATION
$27M
AGE
57
TENURE
5.2 yrs

Bill Perez

TITLE
Independent Director
COMPENSATION
$315K
AGE
69
TENURE
10.7 yrs

Ron Williams

TITLE
Independent Director
COMPENSATION
$315K
AGE
68
TENURE
6.7 yrs

D. Davis

TITLE
Independent Director
COMPENSATION
$300K
AGE
65
TENURE
3.7 yrs

Mary Beckerle

TITLE
Independent Director
COMPENSATION
$294K
AGE
62
TENURE
2.7 yrs

Anne Mulcahy

TITLE
Lead Independent Director
COMPENSATION
$325K
AGE
64
TENURE
5.2 yrs

Ian Edward Davis

TITLE
Independent Director
COMPENSATION
$275K
AGE
66
TENURE
7.6 yrs

Mark McClellan

TITLE
Independent Director
COMPENSATION
$275K
AGE
53
TENURE
4.3 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Johnson & Johnson's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Johnson & Johnson has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

External News
Loading...
Simply Wall St News

Is Buying Johnson & Johnson (NYSE:JNJ) For Its Upcoming $0.84 Dividend A Good Choice?

See our latest analysis for Johnson & Johnson 5 checks you should use to assess a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … Based on future earnings growth, will it be able to continue to payout dividend at the current rate? … NYSE:JNJ Historical Dividend Yield Feb 22nd 18 How well does Johnson & Johnson fit our criteria?

Simply Wall St -

Does Johnson & Johnson's (NYSE:JNJ) February Stock Price Reflect Its Future Growth?

JNJ is trading at a very high price-to-earnings (PE) ratio of 281.18x, meaning Johnson & Johnson is overvalued based on current earnings compared to the pharmaceuticals industry average of 23.63x , and overvalued compared to the US market average ratio of 18.99x. … However, since Johnson & Johnson is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … This means that, when we account for Johnson & Johnson's growth, the stock can be viewed as somewhat overvalued , based on the fundamentals.

Simply Wall St -

Is Johnson & Johnson's (NYSE:JNJ) Balance Sheet A Threat To Its Future?

See our latest analysis for Johnson & Johnson Does JNJ produce enough cash relative to debt? … Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Next Steps: JNJ’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

What You Must Know About Johnson & Johnson's (NYSE:JNJ) ROE

View our latest analysis for Johnson & Johnson Breaking down Return on Equity Return on Equity (ROE) is a measure of Johnson & Johnson’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Johnson & Johnson’s equity capital deployed. … This means Johnson & Johnson returns enough to cover its own cost of equity, with a buffer of 13.08%.

Simply Wall St -

Estimating The Intrinsic Value Of Johnson & Johnson (NYSE:JNJ)

I am going to run you through how I calculated the intrinsic value of Johnson & Johnson (NYSE:JNJ) by taking the expected future cash flows and discounting them to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $19,671.90 $20,639.43 $20,369.00 $20,973.50 $21,506.50 Source Analyst x6 Analyst x5 Analyst x2 Analyst x2 Analyst x2 Present Value Discounted @ 8.49% $18,131.78 $17,534.21 $15,949.70 $15,137.29 $14,306.75 Present Value of 5-year Cash Flow (PVCF)= $81,060 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $21,507 × (1 + 2.5%) ÷ (8.5% – 2.5%) = $365,832 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $365,832 / ( 1 + 8.5%)5 = $243,362 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $324,422.

Simply Wall St -

Johnson & Johnson (NYSE:JNJ): Are forecasts sustainable?

To get some insight, I will shine a light on the behaviour of Johnson & Johnson’s margins so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for JNJ Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 15.83 Billion ÷ 74.36 Billion = 21.28% The past five years have seen Johnson & Johnson's margin expand, with average net income growth of 8.12% outstripping a 2.14% average growth in revenue, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Understanding what could be driving Johnson & Johnson's future earnings It is expected that margins will expand further, with an expectation of 3.70% in annual revenue growth and 6.60% earnings growth expected annually.

Simply Wall St -

Interested In Johnson & Johnson (NYSE:JNJ)? Here's What Its Recent Track-Record Looks Like

In this commentary, I will examine Johnson & Johnson's (NYSE:JNJ) latest earnings update (01 October 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the pharmaceuticals industry performed. … View our latest analysis for Johnson & Johnson How Did JNJ's Recent Performance Stack Up Against Its Past? … This means that, on average, Johnson & Johnson has been able to increase its earnings over the last couple of years.

Simply Wall St -

Will Johnson & Johnson's (NYSE:JNJ) Earnings Grow Over The Couple Of Years?

Below, I've laid out key numbers on how market analysts predict Johnson & Johnson's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … The benefit of this approach is that we can get a better picture of the direction of Johnson & Johnson's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. … This means, we can assume Johnson & Johnson will grow its earnings by 8.65% every year for the next couple of years.

Simply Wall St -

Johnson & Johnson (JNJ): What Does The Future Look Like?

Since Johnson & Johnson (NYSE:JNJ) released its earnings in October 2017, the consensus outlook from analysts appear fairly confident, as a 17.22% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 7.38%. … To understand the overall trajectory of JNJ's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NYSE:JNJ Future Profit Dec 12th 17 From the current net income level of $16,540.0M and the final forecast of $22,198.0M by 2020, the annual rate of growth for JNJ’s earnings is 8.63%.

Simply Wall St -

Is Buying Johnson & Johnson (JNJ) For Its Upcoming $0.84 Dividend A Good Choice?

Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. … With Johnson & Johnson producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. … Taking into account the dividend metrics, Johnson & Johnson ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.

Simply Wall St -

Company Info

Map
Description

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. Its Consumer segment offers baby care products under the JOHNSON’S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, JOHNSON’S Adult, LE PETITE MARSEILLAIS, NEUTROGENA, RoC, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment also provides women’s health products, such as sanitary pads under the STAYFREE and CAREFREE brands, and tampons under the o.b. brand; wound care products comprising adhesive bandages under the BAND-AID brand and first aid products under the NEOSPORIN brand. The company’s Pharmaceutical segment offers various products in the areas of immunology, infectious diseases and vaccines, neuroscience, oncology, cardiovascular and metabolic, and pulmonary hypertension diseases. Its Medical Devices segment provides orthopedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular disease; sterilization and disinfection products to reduce surgical infection; diabetes care products that include blood glucose monitoring; and vision care products, such as disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery. The company markets its products to general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals for prescription use, as well as for use in the professional fields by physicians, nurses, hospitals, eye care professionals, and clinics. Johnson & Johnson was founded in 1885 and is based in New Brunswick, New Jersey.

Details
Name: Johnson & Johnson
JNJ
Exchange: NYSE
Founded: 1885
$348,535,740,750
2,682,901,553
Website: http://www.jnj.com
Address: Johnson & Johnson
One Johnson & Johnson Plaza,
New Brunswick,
New Jersey, 08933,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE JNJ Common Stock New York Stock Exchange US USD 02. Jan 1968
DB JNJ Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA JNJ Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
SWX JNJ Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
SWX JNJ Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG JNJ Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE JNJ Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BVC JNJ Common Stock Bolsa de Valores de Colombia CO COP 02. Jan 1968
BMV JNJ * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BVL JNJ Common Stock Bolsa de Valores de Lima PE USD 02. Jan 1968
BATS-CHIXE JNJZ Common Stock BATS 'Chi-X Europe' GB CHF 02. Jan 1968
BOVESPA JNJB34 BDR EA REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
BASE JNJ CEDEAR EACH REP O.20 ORD SHS Buenos Aires Stock Exchange AR ARS 18. Jan 2001
Number of employees
Current staff
Staff numbers
126,400
Johnson & Johnson employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/02/24
Last estimates confirmation: 2018/02/21
Last earnings update: 2017/12/31
Last annual earnings update: 2017/12/31


All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.