NYSE:JNJ

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

JNJ

-0.5%

US Pharmaceuticals

0.4%

US Market


1 Year Return

11.4%

JNJ

10.5%

US Pharmaceuticals

17.8%

US Market

Return vs Industry: JNJ exceeded the US Pharmaceuticals industry which returned 10.5% over the past year.

Return vs Market: JNJ underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

JNJIndustryMarket
7 Day-0.2%-0.5%0.4%
30 Day-1.2%0.8%6.1%
90 Day-1.9%0.1%8.9%
1 Year14.5%11.4%13.4%10.5%20.5%17.8%
3 Year11.5%2.8%26.6%17.2%42.3%32.9%
5 Year61.3%40.9%38.9%22.6%84.2%63.4%

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?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JNJ ($145.24) is trading below our estimate of fair value ($209.32)

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


Price To Earnings Ratio

PE vs Industry: JNJ's PE Ratio (22.5x) is in line with the US Pharmaceuticals industry average.

PE vs Market: JNJ is poor value based on its PE Ratio (22.5x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: JNJ is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: JNJ is overvalued based on its PB Ratio (5.9x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is Johnson & Johnson forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNJ's forecast earnings growth (10.4% per year) is above the savings rate (2.2%).

Earnings vs Market: JNJ's earnings (10.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: JNJ's revenue (5.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: JNJ's revenue (5.1% 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 (34.4%)


Next Steps

Past Performance

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

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JNJ has high quality earnings.

Growing Profit Margin: JNJ's current net profit margins (21%) are higher than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: JNJ's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: JNJ's earnings growth over the past year (19.8%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: JNJ earnings growth over the past year (19.8%) exceeded the Pharmaceuticals industry 12.6%.


Return on Equity

High ROE: JNJ's Return on Equity (26.3%) is considered high.


Next Steps

Financial Health

How is Johnson & Johnson's financial position?


Financial Position Analysis

Short Term Liabilities: JNJ's short term assets ($57.6B) exceed its short term liabilities ($38.8B).

Long Term Liabilities: JNJ's short term assets ($57.6B) do not cover its long term liabilities ($67.4B).


Debt to Equity History and Analysis

Debt Level: JNJ's debt to equity ratio (57%) is considered high.

Reducing Debt: JNJ's debt to equity ratio has increased from 27.9% to 57% over the past 5 years.

Debt Coverage: JNJ's debt is well covered by operating cash flow (58.7%).

Interest Coverage: JNJ's interest payments on its debt are well covered by EBIT (1007.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: JNJ's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: JNJ's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (60.8%), 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 (47.5% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Alex Gorsky (60 yo)

8.5yrs

Tenure

US$25,365,777

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 ($USD25.37M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Alex's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alex Gorsky
Chairman & CEO8.5yrsUS$25.37m0.017%
$ 65.2m
Joseph Wolk
Executive VP & CFO2.25yrsUS$7.50m0.00080%
$ 3.0m
Paulus Stoffels
Chief Scientific Officer8yrsUS$14.07m0.0097%
$ 36.7m
Joaquin Duato
Vice Chairman of Executive Committee9.75yrsUS$13.42m0.0067%
$ 25.5m
Jennifer Taubert
Executive VP & Worldwide Chairman of Pharmaceuticals8.75yrsUS$7.10m0.0041%
$ 15.5m
Robert Decker
Controller & Chief Accounting Officer0.83yrno data0.00053%
$ 2.0m
James Swanson
Executive VP & Global CIO0.92yrno datano data
Christopher DelOrefice
Vice President of Investor Relations2.17yrsno datano data
Michael Ullmann
Executive VP & General Counsel8.75yrsUS$5.34m0.0055%
$ 20.8m
Ashley Watson
Chief Compliance Officerno datano datano data
Michael Sneed
Executive VP of Global Corporate Affairs & Chief Communication Officer8.75yrsno data0.0023%
$ 8.6m
Peter Fasolo
Executive VP & Chief Human Resources Officer4.5yrsUS$3.62m0.0038%
$ 14.4m

8.0yrs

Average Tenure

57yo

Average Age

Experienced Management: JNJ's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alex Gorsky
Chairman & CEO8.5yrsUS$25.37m0.017%
$ 65.2m
Ronald Williams
Independent Director9.33yrsUS$334.98k0.00014%
$ 530.6k
Charles Prince
Independent Director14.67yrsUS$344.98k0.0011%
$ 4.2m
D. Davis
Independent Director6.33yrsUS$329.98kno data
Anne Mulcahy
Lead Independent Director7.83yrsUS$359.98k0.00028%
$ 1.1m
Hubert Joly
Director0.83yrUS$8.88k0.00019%
$ 720.1k
Marillyn Hewson
Independent Director1.5yrsUS$80.52k0.00011%
$ 416.9k
Ian Edward Davis
Independent Director10.25yrsUS$304.98k0.00016%
$ 606.4k
Mark McClellan
Independent Director7yrsUS$304.98kno data
Mary Beckerle
Independent Director5.33yrsUS$344.98kno data
A. Washington
Independent Director7.92yrsUS$324.98kno data
Jennifer Doudna
Independent Director2.5yrsUS$324.98kno data

7.4yrs

Average Tenure

67yo

Average Age

Experienced Board: JNJ's board of directors are considered experienced (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JNJ insiders have only sold shares 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$379.007b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JNJNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
JNJ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
JNJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
JNJSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
JNJXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
JNJBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
JNJSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
JNJ-UETLX (Eurotlx)YesCommon StockITEURJan 1968
JNJBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
JNJWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
JNJBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP O.20 ORD SHSARARSJan 2001
JNJB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHSBRBRLAug 2012
DJNJ3BASE (Buenos Aires Stock Exchange)CEDEAR(REPR 6.95% BDS)ARARSJul 2020

Biography

Johnson & Johnson 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 Con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:30
End of Day Share Price2020/10/26 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


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.