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Mead Johnson Nutrition Co
MJN : NYSE : Consumer Goods
$71.30 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 2,349,100
10/12/15 - 4:02 PM ET

Financial Analysis

MEAD JOHNSON NUTRITION CO's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. MEAD JOHNSON NUTRITION CO has strong liquidity. Currently, the Quick Ratio is 1.52 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 74.40% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)1032.41111.1
EBITDA ($mil)253.2267.5
EBIT ($mil)228.5245.3
Net Income ($mil)162.9171.4

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)1475.11586.3
Total Assets ($mil)3959.14112.5
Total Debt ($mil)1507.22007.8
Equity ($mil)757.1434.1

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin67.8763.59
EBITDA Margin24.5224.07
Operating Margin22.1322.08
Sales Turnover1.091.05
Return on Assets18.0916.96
Return on Equity94.61160.7
Debt Q2 FY15 Q2 FY14
Current Ratio2.131.59
Interest Expense16.517.8
Interest Coverage13.8513.78

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)202.8202.2
Div / share0.410.38
Book value / share3.732.15
Institutional Own % n/a n/a
Avg Daily Volume2314078.01612316.0


BUY. MEAD JOHNSON NUTRITION CO's P/E ratio indicates a discount compared to an average of 30.32 for the Food Products industry and a value on par with the S&P 500 average of 21.21. For additional comparison, its price-to-book ratio of 19.32 indicates a significant premium versus the S&P 500 average of 2.68 and a significant premium versus the industry average of 5.19. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MJN 20.49 Peers 30.32   MJN 15.45 Peers 16.53

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MJN is trading at a significant discount to its peers.


Average. 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.

MJN is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MJN 18.15 Peers 21.37   MJN 6.61 Peers 1.74

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

MJN is trading at a valuation on par with its peers.


Premium. 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.

MJN trades at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MJN 19.32 Peers 5.19   MJN 2.62 Peers -3.77

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MJN is trading at a significant premium to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MJN is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MJN 3.39 Peers 1.71   MJN -0.47 Peers 0.40

Premium. 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.

MJN is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MJN significantly trails its peers on the basis of sales growth



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