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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
$390B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. The last earnings update was 11 days ago. More info.


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JNJ Share Price and Events
7 Day Returns
3.3%
NYSE:JNJ
3.4%
US Pharmaceuticals
1.6%
US Market
1 Year Returns
4.1%
NYSE:JNJ
18.7%
US Pharmaceuticals
12.4%
US Market
JNJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Johnson & Johnson (JNJ) 3.3% 8.6% 11.6% 4.1% 42.7% 54.1%
US Pharmaceuticals 3.4% 5.1% 9.3% 18.7% 31.7% 57.8%
US Market 1.6% 2.3% -2.2% 12.4% 55.2% 105.4%
1 Year Return vs Industry and Market
  • JNJ underperformed the Pharmaceuticals industry which returned 18.7% over the past year.
  • JNJ underperformed the Market in United States of America which returned 12.4% over the past year.
Price Volatility
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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Johnson & Johnson.

NYSE:JNJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:JNJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.694 (1 + (1- 21%) (8.02%))
0.738
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NYSE:JNJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Johnson & Johnson is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:JNJ DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 24,225.00 25,525.98 25,850.00 26,841.00 27,340.62
Source Analyst x6 Analyst x5 Analyst x1 Analyst x1 Est @ 1.86%
Present Value
Discounted (@ 8.59%)
22,308.68 21,647.25 20,187.90 19,303.65 18,107.53
Present value of next 5 years cash flows $101,555.00
NYSE:JNJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $27,340.62 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$499,063.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $499,063.29 ÷ (1 + 8.59%)5
$330,526.63
NYSE:JNJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $101,555.00 + $330,526.63
$432,081.64
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $432,081.64 / 2,681.98
$161.11
NYSE:JNJ Discount to Share Price
Calculation Result
Value per share (USD) From above. $161.11
Current discount Discount to share price of $145.34
= -1 x ($145.34 - $161.11) / $161.11
9.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Johnson & Johnson is available for.
Intrinsic value
10%
Share price is $145.34 vs Future cash flow value of $161.11
Current Discount Checks
For Johnson & Johnson to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Johnson & Johnson's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Johnson & Johnson's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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?
Raw Data
NYSE:JNJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.57
NYSE:JNJ Share Price ** NYSE (2018-11-09) in USD $145.34
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 28 Publicly-Listed Pharmaceuticals Companies 22.16x
United States of America Market PE Ratio Median Figure of 2,971 Publicly-Listed Companies 18.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Johnson & Johnson.

NYSE:JNJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:JNJ Share Price ÷ EPS (both in USD)

= 145.34 ÷ 0.57

252.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson & Johnson is overvalued based on earnings compared to the US Pharmaceuticals industry average.
  • Johnson & Johnson is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Johnson & Johnson's expected growth come at a high price?
Raw Data
NYSE:JNJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 252.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
25.3%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 23 Publicly-Listed Pharmaceuticals Companies 0.79x
United States of America Market PEG Ratio Median Figure of 2,086 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NYSE:JNJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 252.9x ÷ 25.3%

10x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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?
Raw Data
NYSE:JNJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $24.09
NYSE:JNJ Share Price * NYSE (2018-11-09) in USD $145.34
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 165 Publicly-Listed Pharmaceuticals Companies 2.95x
United States of America Market PB Ratio Median Figure of 4,972 Publicly-Listed Companies 1.88x
NYSE:JNJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:JNJ Share Price ÷ Book Value per Share (both in USD)

= 145.34 ÷ 24.09

6.03x

* Primary Listing of Johnson & Johnson.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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.

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

Future Performance

 How is Johnson & Johnson expected to perform in the next 1 to 3 years based on estimates from 18 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
25.3%
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 3%.
Growth vs Market Checks
  • Johnson & Johnson's earnings growth is expected to exceed the United States of America market average.
  • Johnson & Johnson's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:JNJ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:JNJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 25.3%
NYSE:JNJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.3%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 19.9%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:JNJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:JNJ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 92,268 35,729 5
2021-12-31 90,326 34,577 6
2020-12-31 86,785 29,757 22,736 13
2019-12-31 83,157 27,979 21,539 18
2018-12-31 81,371 22,905 18,702 16
NYSE:JNJ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 81,382 22,062 1,542
2018-07-01 80,684 22,056 1,372
2018-04-01 78,693 21,749 1,245
2017-12-31 76,450 21,056 1,300
2017-10-01 74,361 21,604 15,827
2017-07-02 72,531 20,699 16,335
2017-04-02 72,174 19,491 16,505
2017-01-01 71,890 18,767 16,540
2016-10-02 71,595 17,199 15,941
2016-07-03 70,877 17,978 15,027
2016-04-03 70,182 18,886 15,546
2016-01-03 70,074 19,569 15,409

*GAAP earnings excluding extraordinary items.

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 3.3% 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.
Raw Data
NYSE:JNJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Johnson & Johnson Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:JNJ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 8.56 9.24 8.22 3.00
2019-12-31 8.08 8.63 7.33 6.00
2018-12-31 6.76 8.15 5.99 6.00
NYSE:JNJ Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.57
2018-07-01 0.51
2018-04-01 0.46
2017-12-31 0.48
2017-10-01 5.86
2017-07-02 6.02
2017-04-02 6.06
2017-01-01 6.04
2016-10-02 5.80
2016-07-03 5.45
2016-04-03 5.62
2016-01-03 5.56

*GAAP earnings excluding extraordinary items.

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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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 was negative over the past 5 years and 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.
Raw Data

All data from Johnson & Johnson Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:JNJ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 81,382.00 1,542.00 22,580.00 11,154.00
2018-07-01 80,684.00 1,372.00 22,374.00 11,231.00
2018-04-01 78,693.00 1,245.00 21,920.00 10,888.00
2017-12-31 76,450.00 1,300.00 21,420.00 10,554.00
2017-10-01 74,361.00 15,827.00 20,601.00 9,591.00
2017-07-02 72,531.00 16,335.00 20,133.00 9,184.00
2017-04-02 72,174.00 16,505.00 20,020.00 9,152.00
2017-01-01 71,890.00 16,540.00 19,945.00 9,095.00
2016-10-02 71,595.00 15,941.00 20,527.00 9,319.00
2016-07-03 70,877.00 15,027.00 20,836.00 9,295.00
2016-04-03 70,182.00 15,546.00 21,044.00 9,160.00
2016-01-03 70,074.00 15,409.00 21,203.00 9,046.00
2015-09-27 70,517.00 14,715.00 21,134.00 8,817.00
2015-06-28 71,882.00 16,106.00 21,521.00 8,686.00
2015-03-29 73,590.00 15,916.00 21,618.00 8,562.00
2014-12-28 74,331.00 16,323.00 21,954.00 8,494.00
2014-09-28 74,232.00 17,321.00 22,049.00 8,270.00
2014-06-29 73,340.00 15,554.00 21,895.00 8,289.00
2014-03-30 71,722.00 15,061.00 21,790.00 8,230.00
2013-12-29 71,312.00 13,831.00 21,830.00 8,183.00
2013-09-29 70,515.00 12,879.00 21,574.00 8,103.00
2013-06-30 69,992.00 12,865.00 21,488.00 7,984.00
2013-03-31 68,590.00 10,440.00 21,077.00 7,804.00
2012-12-30 67,224.00 10,853.00 20,869.00 7,665.00
2012-09-30 65,921.00 8,504.00 20,666.00 7,489.00
2012-07-01 64,874.00 8,738.00 20,678.00 7,339.00
2012-04-01 64,996.00 10,106.00 20,928.00 7,455.00
2012-01-01 65,030.00 9,672.00 20,969.00 7,548.00

*GAAP earnings excluding extraordinary items.

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 0/6, 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 1.5x 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.
Raw Data

All data from Johnson & Johnson Company Filings, last reported 1 month ago.

NYSE:JNJ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 64,626.00 31,259.00 19,364.00
2018-07-01 62,889.00 32,083.00 18,139.00
2018-04-01 63,255.00 32,547.00 15,204.00
2017-12-31 60,160.00 34,590.00 18,296.00
2017-10-01 73,979.00 35,376.00 16,283.00
2017-07-02 71,922.00 34,845.00 12,857.00
2017-04-02 70,341.00 32,715.00 39,351.00
2017-01-01 70,418.00 27,508.00 41,915.00
2016-10-02 72,769.00 27,298.00 40,793.00
2016-07-03 72,473.00 26,557.00 42,870.00
2016-04-03 72,647.00 23,559.00 40,042.00
2016-01-03 71,150.00 20,100.00 38,384.00
2015-09-27 71,554.00 19,935.00 37,312.00
2015-06-28 71,131.00 19,449.00 33,961.00
2015-03-29 67,878.00 19,387.00 31,322.00
2014-12-28 69,752.00 18,768.00 33,091.00
2014-09-28 76,591.00 15,271.00 33,006.00
2014-06-29 78,048.00 17,132.00 31,625.00
2014-03-30 76,582.00 17,304.00 29,393.00
2013-12-29 74,053.00 18,206.00 29,206.00
2013-09-29 69,804.00 15,117.00 25,228.00
2013-06-30 69,665.00 15,010.00 25,129.00
2013-03-31 66,855.00 15,924.00 21,668.00
2012-12-30 64,826.00 16,175.00 21,091.00
2012-09-30 63,761.00 17,434.00 19,771.00
2012-07-01 60,434.00 18,264.00 16,915.00
2012-04-01 61,366.00 19,986.00 33,847.00
2012-01-01 57,080.00 20,221.00 32,261.00
  • Johnson & Johnson's level of debt (48.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.7% vs 48.4% today).
  • Debt is well covered by operating cash flow (70.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 39.5x 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 operating cash flow? (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.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


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
2.48%
Current annual income from Johnson & Johnson dividends. Estimated to be 2.62% next year.
If you bought $2,000 of Johnson & Johnson shares you are expected to receive $50 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 pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.37%).
  • Johnson & Johnson's dividend is below the markets top 25% of dividend payers in United States of America (3.5%).
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.
Raw Data
NYSE:JNJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:JNJ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 4.23 1.00
2021-12-31 4.07 1.00
2020-12-31 3.95 7.00
2019-12-31 3.81 10.00
2018-12-31 3.60 8.00
NYSE:JNJ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-18 3.600 2.563
2018-07-16 3.600 2.671
2018-04-26 3.600 2.914
2018-01-03 3.360 2.522
2017-10-19 3.360 2.394
2017-07-17 3.360 2.523
2017-04-27 3.360 2.596
2017-01-03 3.200 2.662
2016-10-20 3.200 2.786
2016-07-18 3.200 2.659
2016-04-28 3.200 2.753
2016-01-04 3.000 2.853
2015-10-22 3.000 2.941
2015-07-21 3.000 3.127
2015-04-23 3.000 3.002
2015-01-05 2.800 2.763
2014-10-16 2.800 2.644
2014-07-21 2.800 2.716
2014-04-24 2.800 2.733
2014-01-02 2.640 2.812
2013-10-17 2.640 2.836
2013-07-15 2.640 2.948
2013-04-25 2.640 3.066
2013-01-02 2.440 3.159
2012-10-17 2.440 3.472
2012-07-16 2.440 3.563
2012-04-26 2.440 3.755
2012-01-03 2.280 3.511
2011-10-21 2.280 3.553
2011-07-18 2.280 3.563
2011-04-28 2.280 3.435
2011-02-25 2.160 3.578
2011-01-25 2.160 3.564
2010-11-10 2.160 3.450
2010-10-19 2.160 3.378
2010-04-22 2.160 3.572
2010-04-20 1.960 2.998
2010-03-01 1.960 3.025
2010-01-26 1.960 3.099
2009-11-04 1.960 3.086
2009-10-13 1.960 3.257
2009-04-23 1.960 3.389
2009-04-14 1.960 3.771
2009-02-20 1.840 3.604
2009-01-20 1.840 3.219
2008-11-12 1.840 3.145

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 earnings (0.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x 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 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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
COMPENSATION $29,802,564
AGE 58
TENURE AS CEO 6.6 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 been consistent with company performance over the past year.
  • Alex's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

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

6.1
Average Tenure
57
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
$30M
AGE
58
TENURE
6.6 yrs

Paul Stoffels

TITLE
Vice Chairman of Executive Committee
COMPENSATION
$14M
AGE
56
TENURE
6.1 yrs

Joaquin Duato

TITLE
Vice Chairman of Executive Committee
COMPENSATION
$19M
AGE
55
TENURE
7.8 yrs

Joe Wolk

TITLE
Executive VP & CFO
TENURE
0.3 yrs

Ron Kapusta

TITLE
Controller & Chief Accounting Officer
AGE
59
TENURE
3.1 yrs

Chris DelOrefice

TITLE
Vice President of Investor Relations
TENURE
0.3 yrs

Mike Ullmann

TITLE
Executive VP & General Counsel
COMPENSATION
$6M
AGE
59
TENURE
6.8 yrs

Michael Sneed

TITLE
Executive VP of Global Corporate Affairs and Chief Communication Officer
TENURE
6.8 yrs

Peter Fasolo

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$4M
AGE
55
TENURE
2.6 yrs

Guy Lebeau

TITLE
Group Chairman of MD&D Business - EMEA
Board of Directors Tenure

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

6
Average Tenure
66.5
Average Age
  • The tenure for the Johnson & Johnson board of directors is about average.
Board of Directors

Alex Gorsky

TITLE
Chairman & CEO
COMPENSATION
$30M
AGE
58
TENURE
5.9 yrs

Chuck Prince

TITLE
Independent Director
COMPENSATION
$325K
AGE
68
TENURE
12.8 yrs

Bill Perez

TITLE
Independent Director
COMPENSATION
$325K
AGE
70
TENURE
11.4 yrs

Ron Williams

TITLE
Independent Director
COMPENSATION
$325K
AGE
69
TENURE
7.4 yrs

D. Davis

TITLE
Independent Director
COMPENSATION
$310K
AGE
66
TENURE
4.4 yrs

Mary Beckerle

TITLE
Independent Director
COMPENSATION
$325K
AGE
63
TENURE
3.4 yrs

Anne Mulcahy

TITLE
Lead Independent Director
COMPENSATION
$320K
AGE
66
TENURE
5.9 yrs

Ian Edward Davis

TITLE
Independent Director
COMPENSATION
$285K
AGE
67
TENURE
8.3 yrs

A. Washington

TITLE
Independent Director
COMPENSATION
$285K
AGE
67
TENURE
6 yrs

Mark McClellan

TITLE
Independent Director
COMPENSATION
$285K
AGE
54
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price ($) Value ($)
09. Nov 18 Sell Ronald Kapusta Individual 08. Nov 18 08. Nov 18 -8,441 $145.15 $-1,225,200.18
11. Sep 18 Sell Ronald Kapusta Individual 07. Sep 18 07. Sep 18 -7,899 $137.18 $-1,083,606.94
X
Management checks
We assess Johnson & Johnson's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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.

News

External News
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Simply Wall St News

Why Johnson & Johnson's (NYSE:JNJ) CEO Pay Matters To You

Alex Gorsky has been the CEO of Johnson & Johnson (NYSE:JNJ) since 2012. … This analysis aims first to contrast CEO compensation with other large companies. … At the time of writing our data says that Johnson & Johnson has a market cap of US$359.1b, and is paying total annual CEO compensation of US$30m.

Simply Wall St -

A Look At The Fair Value Of Johnson & Johnson (NYSE:JNJ)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Johnson & Johnson (NYSE:JNJ) as an investment opportunity. … by taking the expected future cash flows and discounting them to today's value. … If you are reading this and its not October 2018 then I highly recommend you check out the latest calculation for Johnson & Johnson by following the link below

Simply Wall St -

Did Johnson & Johnson (NYSE:JNJ) Create Value For Investors Over The Past Year?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Johnson & Johnson’s (NYSE:JNJ) most recent return on equity was a substandard 2.18% relative to its industry performance of 13.05% over the past year. … See our latest analysis for Johnson & Johnson

Simply Wall St -

What Should You Know About Johnson & Johnson's (NYSE:JNJ) Profit Growth?

Johnson & Johnson's (NYSE:JNJ) … stable earnings sentiment … has analysts forecasting

Simply Wall St -

What Investors Should Know About Johnson & Johnson's (NYSE:JNJ) Financial Strength

Investors pursuing a solid, dependable stock investment can often be led to Johnson & Johnson (NYSE:JNJ), a large-cap worth US$337.76b. … This article will examine Johnson & Johnson’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

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

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should Johnson & Johnson (NYSE:JNJ) Be Part Of Your Dividend Portfolio?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the past 10 years Johnson & Johnson (NYSE:JNJ) has returned an average of 3.00% per year to investors in the form of dividend payouts. … View out our latest analysis for Johnson & Johnson

Simply Wall St -

Have Investors Priced In Johnson & Johnson's (NYSE:JNJ) Growth?

Today we're going to take a look at the well-established Johnson & Johnson (NYSE:JNJ). … Let’s take a look at Johnson & Johnson’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, Johnson & Johnson seems to be fairly priced at around 9.26% below my intrinsic value, which means if you buy Johnson & Johnson today, you’d be paying a reasonable price for it.

Simply Wall St -

Johnson & Johnson (NYSE:JNJ): Does The -92.46% Earnings Drop Reflect A Longer Term Trend?

Today I will run you through a basic sense check to gain perspective on how Johnson & Johnson is doing by comparing its latest earnings with its long-term trend as well as the performance of its pharmaceuticals industry peers. … Check out our latest analysis for Johnson & Johnson Did JNJ perform worse than its track record and industry? … This suggests that whatever uplift the industry is enjoying, Johnson & Johnson has not been able to reap as much as its industry peers.What does this mean?

Simply Wall St -

Johnson & Johnson (NYSE:JNJ): Ex-Dividend Is In 3 Days, Should You Buy?

Check out our latest analysis for Johnson & Johnson How I analyze a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is its annual yield among the top 25% of dividend-paying companies? … NYSE:JNJ Historical Dividend Yield May 21st 18 How well does Johnson & Johnson fit our criteria? … In the near future, analysts are predicting a more sensible payout ratio of 44.72%, leading to a dividend yield of around 3.12%.

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
$389,798,678,014
2,681,977,969
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
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
134,000
Johnson & Johnson employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/11 21:07
End of day share price update: 2018/11/09 00:00
Last estimates confirmation: 2018/11/09
Last earnings filing: 2018/10/31
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times 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.