Johnson & Johnson
Market Cap
US$392.4b
Last Updated
2020/02/20 00:44 UTC
Data Sources
Company Financials +
Executive Summary
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with reasonable growth potential.
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
Stable Share Price: JNJ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
JNJ
-1.0%
US Pharmaceuticals
0.5%
US Market
1 Year Return
10.0%
JNJ
6.7%
US Pharmaceuticals
20.3%
US Market
Return vs Industry: JNJ exceeded the US Pharmaceuticals industry which returned 6.7% over the past year.
Return vs Market: JNJ underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| JNJ | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -1.0% | 0.5% |
| 30 Day | -0.2% | -3.3% | 2.0% |
| 90 Day | 7.9% | 5.7% | 9.4% |
| 1 Year | 13.1%10.0% | 9.4%6.7% | 22.8%20.3% |
| 3 Year | 32.6%22.4% | 25.9%16.9% | 50.1%40.4% |
| 5 Year | 65.0%44.9% | 21.3%9.0% | 73.1%54.1% |
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
1 day ago | Simply Wall St
Why You Should Leave Johnson & Johnson (NYSE:JNJ)'s Upcoming Dividend On The Shelf1 week ago | Simply Wall St
What Kind Of Shareholders Own Johnson & Johnson (NYSE:JNJ)?3 weeks ago | Simply Wall St
A Closer Look At Johnson & Johnson's (NYSE:JNJ) Impressive ROEValuation
Is Johnson & Johnson undervalued compared to its fair value and its price relative to the market?
22.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: JNJ ($148.94) is trading below our estimate of fair value ($190.87)
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 (26.4x) compared to the Pharmaceuticals industry average (21.5x).
PE vs Market: JNJ is poor value based on its PE Ratio (26.4x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: JNJ is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: JNJ is overvalued based on its PB Ratio (6.7x) compared to the US Pharmaceuticals industry average (3.1x).
Next Steps
Future Growth
How is Johnson & Johnson forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
21.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JNJ's forecast earnings growth (21% per year) is above the savings rate (1.7%).
Earnings vs Market: JNJ's earnings (21% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: JNJ's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: JNJ's revenue (4.3% 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 (26.8%)
Next Steps
Past Performance
How has Johnson & Johnson performed over the past 5 years?
-9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JNJ has a high level of non-cash earnings.
Growing Profit Margin: JNJ's current net profit margins (18.4%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: JNJ's earnings have declined by -9.1% 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 (-0.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (2.4%).
Return on Equity
High ROE: JNJ's Return on Equity (26%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Johnson & Johnson's financial position?
Financial Position Analysis
Short Term Liabilities: JNJ's short term assets ($44.3B) exceed its short term liabilities ($35.2B).
Long Term Liabilities: JNJ's short term assets ($44.3B) do not cover its long term liabilities ($62.1B).
Debt to Equity History and Analysis
Debt Level: JNJ's debt to equity ratio (50.2%) is considered high.
Reducing Debt: JNJ's debt to equity ratio has increased from 26.9% to 50.2% over the past 5 years.
Debt Coverage: JNJ's debt is well covered by operating cash flow (79.6%).
Interest Coverage: JNJ earns more interest than it pays, so coverage of interest payments is not a concern.
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 1.5x debt).
Next Steps
Dividend
What is Johnson & Johnson's current dividend yield, its reliability and sustainability?
2.55%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Johnson & Johnson before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: JNJ's dividend (2.55%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: JNJ's dividend (2.55%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 (66.6%), 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 (41.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Alex Gorsky (59yo)
7.8yrs
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 above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 7.8yrs | US$20.10m | 0.015% $58.3m | |
| Executive VP & CFO | 1.6yrs | US$2.71m | 0.00060% $2.4m | |
| Chief Scientific Officer | 7.3yrs | US$10.59m | 0.0088% $34.5m | |
| Executive VP & General Counsel | 8.1yrs | US$5.34m | 0.0051% $20.0m | |
| Vice Chairman of Executive Committee | 9.1yrs | US$9.28m | 0.0044% $17.2m | |
| Controller & Chief Accounting Officer | 0.2yrs | no data | 0.00050% $2.0m | |
| Executive VP & Global CIO | 0.3yrs | no data | no data | |
| Vice President of Investor Relations | 1.5yrs | no data | no data | |
| Executive VP of Global Corporate Affairs & Chief Communication Officer | 8.1yrs | no data | 0.0020% $7.9m | |
| Executive VP & Chief Human Resources Officer | 3.8yrs | US$3.62m | 0.0034% $13.2m |
5.6yrs
Average Tenure
56.5yo
Average Age
Experienced Management: JNJ's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 7.8yrs | US$20.10m | 0.015% $58.3m | |
| Independent Director | 12.7yrs | US$339.94k | 0.00059% $2.3m | |
| Independent Director | 8.7yrs | US$339.94k | 0.00014% $549.4k | |
| Independent Director | 14yrs | US$339.94k | 0.0011% $4.4m | |
| Independent Director | 5.7yrs | US$324.94k | no data | |
| Lead Independent Director | 7.2yrs | US$354.94k | 0.00028% $1.1m | |
| Independent Director | 9.6yrs | US$299.94k | 0.00016% $627.9k | |
| Independent Director | 6.3yrs | US$299.94k | no data | |
| Independent Director | 4.7yrs | US$339.94k | no data | |
| Independent Director | 7.3yrs | US$319.94k | no data |
7.2yrs
Average Tenure
67.5yo
Average Age
Experienced Board: JNJ's board of directors are considered experienced (7.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: JNJ insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$392.415b
- Shares outstanding: 2.63b
- Website: https://www.jnj.com
Number of Employees
Location
- Johnson & Johnson
- One Johnson & Johnson Plaza
- New Brunswick
- New Jersey
- 8933
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| JNJ | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| JNJ * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| JNJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| JNJ | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| JNJ | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| JNJ | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | Jan 1968 |
| JNJ | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| JNJ-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| JNJ | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Jan 1968 |
| JNJ | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| JNJ | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP O.20 ORD SHS | AR | ARS | Jan 2001 | |
| JNJB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1 COM SHS | BR | BRL | Aug 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, Pharmaceutical, and Medical Devices. The 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, 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 and tampons under the STAYFREE, CAREFREE, and o.b. brands; wound care products comprising adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. The Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases. The Medical Devices segment provides orthopedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular diseases; sterilization and disinfection products to reduce surgical infection; diabetes care products; 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, and retail outlets and distributors, as well as distributes directly to wholesalers, hospitals, and health care professionals for prescription use. It has research and collaboration alliance with Morphic Therapeutic. The company was incorporated in 1887 and is based in New Brunswick, New Jersey.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:44 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/29 |
| Annual Earnings | 2019/12/29 |
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.