NYSE:JNJ

Stock Analysis Report

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Market Cap

US$453.3b

Last Updated

2021/07/31 05:30 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

Outstanding track record established dividend payer.


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

0.2%

JNJ

-0.02%

US Pharmaceuticals

-0.5%

US Market


1 Year Return

18.1%

JNJ

17.5%

US Pharmaceuticals

35.9%

US Market

Return vs Industry: JNJ matched the US Pharmaceuticals industry which returned 17.5% over the past year.

Return vs Market: JNJ underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

JNJIndustryMarket
7 Day0.2%-0.02%-0.5%
30 Day3.8%3.4%0.3%
90 Day5.8%9.2%3.1%
1 Year21.3%18.1%22.4%17.5%38.0%35.9%
3 Year41.4%30.5%32.9%21.7%62.9%52.7%
5 Year58.3%38.6%49.0%29.8%121.7%97.3%

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?

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JNJ ($172.2) is trading below our estimate of fair value ($251.06)

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 (25.5x) compared to the US Pharmaceuticals industry average (23x).

PE vs Market: JNJ is poor value based on its PE Ratio (25.5x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: JNJ is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: JNJ is overvalued based on its PB Ratio (6.9x) compared to the US Pharmaceuticals industry average (2.9x).


Future Growth

How is Johnson & Johnson forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNJ's forecast earnings growth (9.4% per year) is above the savings rate (2%).

Earnings vs Market: JNJ's earnings (9.4% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: JNJ's revenue (2.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: JNJ's revenue (2.5% 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 (25.7%)


Past Performance

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

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JNJ has high quality earnings.

Growing Profit Margin: JNJ's current net profit margins (19.9%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: JNJ's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: JNJ's earnings growth over the past year (16.1%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: JNJ earnings growth over the past year (16.1%) exceeded the Pharmaceuticals industry 12.9%.


Return on Equity

High ROE: JNJ's Return on Equity (27%) is considered high.


Financial Health

How is Johnson & Johnson's financial position?


Financial Position Analysis

Short Term Liabilities: JNJ's short term assets ($52.5B) exceed its short term liabilities ($40.9B).

Long Term Liabilities: JNJ's short term assets ($52.5B) do not cover its long term liabilities ($65.8B).


Debt to Equity History and Analysis

Debt Level: JNJ's debt to equity ratio (49.4%) is considered high.

Reducing Debt: JNJ's debt to equity ratio has increased from 36.7% to 49.4% over the past 5 years.

Debt Coverage: JNJ's debt is well covered by operating cash flow (74.6%).

Interest Coverage: JNJ's interest payments on its debt are well covered by EBIT (126.5x coverage).


Balance Sheet


Dividend

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

2.46%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateAug 23 2021Dividend Pay DateSep 07 202115 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: JNJ's dividend (2.46%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: JNJ's dividend (2.46%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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 (60.6%), 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 (42% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Alex Gorsky (61 yo)

9.17yrs

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 ($USD29.58M) is above average for companies of similar size in the US market ($USD11.17M).

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 (8.8 years average tenure).


Board Members

Experienced Board: JNJ's board of directors are considered experienced (8.2 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.


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$453.313b
  • 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 Analysis2021/07/31 05:30
End of Day Share Price2021/07/30 00:00
Earnings2021/07/04
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.