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Market Cap

US$427.1b

Last Updated

2021/04/16 22:10 UTC

Data Sources

Company Financials +

Executive Summary

Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. More Details


Snowflake Analysis

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JNJ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: JNJ's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

JNJ

2.3%

US Pharmaceuticals

1.3%

US Market


1 Year Return

6.7%

JNJ

8.9%

US Pharmaceuticals

53.9%

US Market

Return vs Industry: JNJ underperformed the US Pharmaceuticals industry which returned 8.9% over the past year.

Return vs Market: JNJ underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

JNJIndustryMarket
7 Day0.6%2.3%1.3%
30 Day0.9%1.3%3.3%
90 Day1.2%-0.6%8.9%
1 Year9.6%6.7%13.1%8.9%56.6%53.9%
3 Year38.9%28.1%38.5%26.5%64.4%53.6%
5 Year63.7%43.2%46.8%27.7%120.4%95.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JNJ ($162.24) is trading below our estimate of fair value ($243.17)

Significantly Below Fair Value: JNJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JNJ is poor value based on its PE Ratio (29x) compared to the US Pharmaceuticals industry average (27.7x).

PE vs Market: JNJ is poor value based on its PE Ratio (29x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: JNJ is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: JNJ is overvalued based on its PB Ratio (6.7x) compared to the US Pharmaceuticals industry average (3.8x).


Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNJ's forecast earnings growth (9.6% per year) is above the savings rate (2%).

Earnings vs Market: JNJ's earnings (9.6% per year) are forecast to grow slower than the US market (18.1% per year).

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

Revenue vs Market: JNJ's revenue (4.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: JNJ's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JNJ's Return on Equity is forecast to be high in 3 years time (36.4%)


Past Performance

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

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JNJ has high quality earnings.

Growing Profit Margin: JNJ's current net profit margins (17.8%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: JNJ's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: JNJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JNJ had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-1.8%).


Return on Equity

High ROE: JNJ's Return on Equity (23.3%) is considered high.


Financial Health

How is Johnson & Johnson's financial position?


Financial Position Analysis

Short Term Liabilities: JNJ's short term assets ($51.2B) exceed its short term liabilities ($42.5B).

Long Term Liabilities: JNJ's short term assets ($51.2B) do not cover its long term liabilities ($69.1B).


Debt to Equity History and Analysis

Debt Level: JNJ's debt to equity ratio (55.7%) is considered high.

Reducing Debt: JNJ's debt to equity ratio has increased from 28.3% to 55.7% over the past 5 years.

Debt Coverage: JNJ's debt is well covered by operating cash flow (66.7%).

Interest Coverage: JNJ's interest payments on its debt are well covered by EBIT (222.4x coverage).


Balance Sheet


Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JNJ's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: JNJ's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.2%), JNJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JNJ's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Alex Gorsky (60 yo)

9yrs

Tenure

US$29,575,974

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 ($USD29.58M) is above average for companies of similar size in the US market ($USD11.14M).

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


Leadership Team

Experienced Management: JNJ's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: JNJ's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

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: 1886
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$427.146b
  • 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


Biography

Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. It operates through three segments: Consumer Health, Pharmaceutical, and Medical D...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:10
End of Day Share Price2021/04/16 00:00
Earnings2021/01/03
Annual Earnings2021/01/03


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.