Johnson & Johnson
Find Ratings ReportsJOHNSON & JOHNSON's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. JOHNSON & JOHNSON has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 21395.0 | 19939.0 |
EBITDA ($mil) | 6333.0 | 6856.0 |
EBIT ($mil) | 4490.0 | 5084.0 |
Net Income ($mil) | 4049.0 | 3520.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 22927.0 | 23519.0 |
Total Assets ($mil) | 167558.0 | 187378.0 |
Total Debt ($mil) | 29332.0 | 39659.0 |
Equity ($mil) | 68774.0 | 76804.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 77.4 | 79.47 |
EBITDA Margin | 29.6 | 34.38 |
Operating Margin | 20.99 | 25.5 |
Sales Turnover | 0.51 | 0.43 |
Return on Assets | 20.97 | 9.57 |
Return on Equity | 19.38 | 21.31 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.16 | 0.99 |
Debt/Capital | 0.3 | 0.34 |
Interest Expense | 151.0 | 177.0 |
Interest Coverage | 29.74 | 28.72 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 2407.08 | 2613.6 |
Div / share | 1.19 | 1.13 |
EPS | 1.7 | 1.22 |
Book value / share | 28.57 | 29.39 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 7039055.0 | 6943665.0 |
HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.57 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, JOHNSON & JOHNSON proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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JNJ 30.33 | Peers 85.83 | JNJ 16.82 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. JNJ is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. JNJ is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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JNJ 14.44 | Peers 18.08 | JNJ 0.29 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. JNJ is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. JNJ trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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JNJ 5.57 | Peers 19.07 | JNJ -14.64 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. JNJ is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, JNJ is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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JNJ 4.50 | Peers 84.44 | JNJ 6.46 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. JNJ is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. JNJ significantly trails its peers on the basis of sales growth. |
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