NYSE:JNJ

Stock Analysis Report

Executive Summary

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide.

Snowflake

Fundamentals

Established dividend payer with proven 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


Market Performance


7 Day Return

1.0%

NYSE:JNJ

2.3%

US Pharmaceuticals

2.9%

US Market


1 Year Return

-2.3%

NYSE:JNJ

-5.8%

US Pharmaceuticals

0.2%

US Market

JNJ outperformed the Pharmaceuticals industry which returned -6.8% over the past year.

JNJ underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

JNJIndustryMarket
7 Day1.0%2.3%2.9%
30 Day2.2%-1.0%-2.3%
90 Day-5.9%-3.6%3.1%
1 Year0.3%-2.3%-3.5%-5.8%2.4%0.2%
3 Year19.2%10.8%11.3%3.7%41.7%32.4%
5 Year45.0%27.4%23.3%10.3%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Johnson & Johnson's share price is below the future cash flow value, and at a moderate discount (> 20%).

Johnson & Johnson's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

Johnson & Johnson is poor value based on expected growth next year.


Price Based on Value of Assets

Johnson & Johnson is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Johnson & Johnson expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Johnson & Johnson's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Johnson & Johnson's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

Johnson & Johnson's revenue growth is positive but not above the United States of America market average.

Johnson & Johnson's earnings growth is positive but not above the United States of America market average.

Johnson & Johnson's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Johnson & Johnson is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

-13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Johnson & Johnson's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Johnson & Johnson's 1-year earnings growth exceeds its 5-year average (1091.6% vs -13.2%)

Johnson & Johnson's earnings growth has exceeded the US Pharmaceuticals industry average in the past year (1091.6% vs 24.3%).


Return on Equity

Johnson & Johnson has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Johnson & Johnson used its assets less efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Johnson & Johnson has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Johnson & Johnson's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (21.9% vs 48.4% today).

Debt is well covered by operating cash flow (74.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 175.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

3.07%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Johnson & Johnson before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Johnson & Johnson's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Johnson & Johnson's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of Johnson & Johnson's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Alex Gorsky (59yo)

7.3yrs

Tenure

US$20,097,572

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

Alex's remuneration is higher than average for companies of similar size in United States of America.

Alex's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Johnson & Johnson management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

67.5yo

Average Age

The tenure for the Johnson & Johnson board of directors is about average.


Insider Trading

More shares have been bought than sold by Johnson & Johnson individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$419,04011 Jun 19
Marillyn Hewson
EntityIndividual
Shares3,000
Max PriceUS$139.68
BuyUS$268,73117 Dec 18
Charles Prince
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$134.37
BuyUS$100,05017 Dec 18
Anne Mulcahy
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares748
Max PriceUS$133.76
BuyUS$133,91017 Dec 18
William Perez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$133.91
SellUS$536,63814 Dec 18
Ronald Kapusta
EntityIndividual
Role
Chief Accounting Officer
Controller & Chief Accounting Officer
Shares3,643
Max PriceUS$147.31
SellUS$1,225,20009 Nov 18
Ronald Kapusta
EntityIndividual
Role
Chief Accounting Officer
Controller & Chief Accounting Officer
Shares8,441
Max PriceUS$145.15
SellUS$1,083,60711 Sep 18
Ronald Kapusta
EntityIndividual
Role
Chief Accounting Officer
Controller & Chief Accounting Officer
Shares7,899
Max PriceUS$137.18

Ownership Breakdown


Management Team

  • Paul Stoffels (57yo)

    Chief Scientific Officer

    • Tenure: 6.8yrs
    • Compensation: US$10.59m
  • Mike Ullmann (60yo)

    Executive VP & General Counsel

    • Tenure: 7.6yrs
    • Compensation: US$5.34m
  • Alex Gorsky (59yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$20.10m
  • Michael Sneed

    Executive VP of Global Corporate Affairs & Chief Communication Officer

    • Tenure: 7.6yrs
  • Guy Lebeau

    Group Chairman of MD&D Business - EMEA

    • Tenure: 0.0yrs
  • Joaquin Duato (56yo)

    Vice Chairman of Executive Committee

    • Tenure: 8.6yrs
    • Compensation: US$9.28m
  • Peter Fasolo (56yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 3.3yrs
    • Compensation: US$3.62m
  • Ron Kapusta (60yo)

    Controller & Chief Accounting Officer

    • Tenure: 3.8yrs
  • Joe Wolk (52yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$2.71m
  • Chris DelOrefice

    Vice President of Investor Relations

    • Tenure: 1.0yrs

Board Members

  • Bill Perez (71yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$339.94k
  • Ron Williams (70yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$339.94k
  • Chuck Prince (69yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$339.94k
  • D. Davis (67yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$324.94k
  • Anne Mulcahy (67yo)

    Lead Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$354.94k
  • Ian Edward Davis (68yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$299.94k
  • Alex Gorsky (59yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$20.10m
  • Mark McClellan (55yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$299.94k
  • Mary Beckerle (64yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$339.94k
  • A. Washington (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$319.94k

Company Information

Johnson & Johnson's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson & Johnson
  • Ticker: JNJ
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$347.129b
  • Shares outstanding: 2.64b
  • 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
JNJBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
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
JNJBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
JNJZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 1968
JNJSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
JNJ-UETLX (Eurotlx)YesCommon StockITEURJan 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

Biography

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceuti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:37
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.