Johnson & Johnson
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
Rewards
Risk Analysis
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
| JNJ | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 2.3% | 1.3% |
| 30 Day | 0.9% | 1.3% | 3.3% |
| 90 Day | 1.2% | -0.6% | 8.9% |
| 1 Year | 9.6%6.7% | 13.1%8.9% | 56.6%53.9% |
| 3 Year | 38.9%28.1% | 38.5%26.5% | 64.4%53.6% |
| 5 Year | 63.7%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
1 day ago | Simply Wall St
Johnson & Johnson's (NYSE:JNJ) CEO Compensation Is Looking A Bit Stretched At The Moment5 days ago | Simply Wall St
Are Institutions Heavily Invested In Johnson & Johnson's (NYSE:JNJ) Shares?2 weeks ago | Simply Wall St
Do Fundamentals Have Any Role To Play In Driving Johnson & Johnson's (NYSE:JNJ) Stock Up Recently?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:10 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2021/01/03 |
| Annual Earnings | 2021/01/03 |
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.