About Johnson & Johnson
Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment provides a portfolio of products used in the surgery, orthopedic, cardiovascular, and vision fields distributed through wholesalers, hospitals and retailers, and used in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. This segment also offers products and enabling technologies that support joint reconstruction, trauma, spine, sports related injuries, and others, as well as open, laparoscopic, and robotic surgical procedures; instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies; breast aesthetics and reconstruction; contact lenses under the ACUVUE brand; intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures under the TECNIS brand. The company was founded in 1886 and is based in New Brunswick, New Jersey.
Johnson & Johnson (JNJ) is a Healthcare company in the Drug Manufacturers - General industry with a market capitalisation of $650.6B. The stock trades at 31.36x trailing earnings and yields 1.99%.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- Market cap
- $650.6B
- P/E ratio
- 31.36
- Forward P/E
- 22.24
- EPS (TTM)
- $8.61
- Revenue (TTM)
- $97.9B
- Free cash flow
- $16.9B
- Profit margin
- 21.5%
- Dividend yield
- 1.99%
- Beta
- 0.23
- Shares outstanding
- 2.4B
Financial health: Fair6.4/10
5 strengths, 2 concerns. Weakest points: earnings growth, peg ratio.
- Debt to equity: 0.51 (Watch, benchmark < 0.5) — Debt of 0.51x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 1.1y (Strong, benchmark < 4 years) — Net debt of $21.7B is 1.1x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 1.03 (Watch, benchmark > 1.5) — Short-term assets cover 1.03x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 25.7% (Strong, benchmark > 15%) — Earns 25.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 68.1% (Strong, benchmark > 40%) — Keeps 68.1% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 21.5% (Strong, benchmark > 10%) — Turns 21.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $19.7B (Strong, benchmark positive) — Generated $19.7B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 6.6% (Watch, benchmark > 10%) — Revenue changed 6.6% year on year, short of the > 10% mark.
- Earnings growth: -0.9% (Concern, benchmark > 10%) — Earnings changed -0.9% year on year, well short of the > 10% mark.
- PEG ratio: 2.83 (Concern, benchmark < 1) — At 2.83, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 60.8% (Watch, benchmark < 60%) — Pays out 60.8% of earnings as dividends — above the level usually considered sustainable.