Seeking Alpha

JNJ
Johnson & Johnson - NYSE

7/10/2014, 5:39 AM ET
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  • Has Johnson & Johnson Finally Met Its Match?
    Team Money Research Yesterday, 3:46 PM 6 Comments

    Summary

    • In the latest instalment of our Head-To-Head series, we pitch two companies from the health care sector, Johnson & Johnson and Covidien, against one another.
    • The article focuses on the relative strengths and weaknesses of Johnson & Johnson and Covidien based on business performance and sustainability/dividends.
    • It concludes by discussing the current valuations of the two companies, and answers whether Johnson & Johnson represents good relative value at current price levels.
  • Johnson & Johnson's Artificial Pancreas May Be Launched Earlier Than Expected
    Andy Batts Yesterday, 1:47 PM 2 Comments

    Summary

    • J&J's diabetes division, Animas, recently launched its latest combo device Animas Vibe in Canada.
    • The company didn't disclose exactly when its artificial pancreas would hit the market.
    • I believe that J&J's artificial pancreas will be launched much earlier than anticipated.
  • Johnson & Johnson: Valuation Not Attractive Despite Impressive Strategic Alliance
    Andy Batts Fri, Jul. 4 25 Comments

    Summary

    • Johnson & Johnson has formed a strategic alliance with Tissue Regeneration Systems for developing patient-specific implants.
    • TRS is a start-up medical device company aimed at commercializing its technology in skeletal reconstruction and bone regeneration.
    • Despite this, Johnson & Johnson is expected to grow at a CAGR of ~10% for the next five years, its valuation isn't attractive enough.
  • Johnson & Johnson's Growth Avenues
    Trefis Thu, Jul. 3 2 Comments

    Summary

    • J&J's drug sales have registered a phenomenal growth in recent quarters with consumer segment doing better due to improvements in supply chain and manufacturing.
    • Oncology, or cancer therapeutics, is one of the key growth segments for J&J and for the pharmaceutical industry in general.
    • However, uncertain currency fluctuations, generic competition and pricing pressure in medical devices industry remain the primary risks.
  • Johnson & Johnson: A Compelling Buy, But I Would Wait For A Pullback
    Michael Grogan Sun, Jun. 29 8 Comments

    Summary

    • I use financial ratio analysis to compare Johnson & Johnson's financial performance against Procter & Gamble and Kimberly-Clark.
    • Johnson & Johnson has consistently shown superior performance on the measures of liquidity, solvency and profitability.
    • The dividend discount model yields a price target of $129. However, given Johnson and Johnson's current valuation, it is advisable to wait for a pullback of 10%-15%.
  • Johnson & Johnson: What If You Bought At These Highs?
    Tradevestor Wed, Jun. 25 22 Comments

    Summary

    • Stocks are at all-time highs, but most investors feel the urge to invest their money somewhere.
    • With interest rates expected to stay low, stocks look even more attractive.
    • What's likely to happen if an investor buys shares in Johnson & Johnson right now?
  • Johnson & Johnson: Buy The Dip...But Not Yet

    Summary

    • J&J hit a new 52-week high last week and the stock is up 20% in the past 4 months.
    • J&J is one of our "stocks to watch" in the Healthcare sector.
    • J&J is currently trading at 20.04x trailing earnings, which represents 2.7% and 15.2% premiums to the company's respective 3-year and 10-year historical averages.
  • Johnson & Johnson: Why I'm Not A Buyer And What I Would Buy Instead
    Sammy Pollack Sun, Jun. 22 28 Comments

    Summary

    • JNJ is currently trading at a high valuation relative to historic norms.
    • Investors are likely to rotate out of JNJ in favor of more cyclical names if the markets continue to advance.
    • Other high quality companies are trading at better valuations.
  • Johnson & Johnson: Expect Dividend Growth To Accelerate In Next 2 Years
    Stock Gamer Sun, Jun. 22 12 Comments

    Summary

    • Free cash flow will experience high single digit CAGR in next few years driven by solid revenue growth, improved profitability, and relatively steady capex trend.
    • Due to healthy EPS growth potential, JNJ can sustain 7%-8% dividend per share CAGR in next few years with free cash flow and earnings payout ratios being stable.
    • Dividend yield on cost may rise to 3.1% by Q2 2016.
    • Current stock valuation has only priced in a dividend growth rate of 6.0%-6.5%.
  • Johnson & Johnson: Good Value, Very Low Risk, And Little Cycle Dependence
    Donald van Deventer Thu, Jun. 19 4 Comments

    Summary

    • Johnson & Johnson default probabilities round to zero at short maturities and are 0.07% at 10 years (annualized).
    • Macro-factors determine only 11.9% of the variation in JNJ default probabilities over the last 20 years, so the bonds have low cycle risk.
    • Even with these strengths, the bonds are not over-priced. JNJ's two best heavily traded bonds ranked in the top 40% by value on June 17.
  • Johnson & Johnson: A New Marketing Strategy Could Drive Growth
    Efficient Alpha Thu, Jun. 12 1 Comment

    Summary

    • Shares are around fair value or higher, but upside exists on catalysts for higher earnings.
    • A strong R&D budget and few major patent expirations should support sales with potential in a new marketing strategy for faster growth.
    • A renewed focus on cost management should improve margins and bottom-line results.
  • Johnson & Johnson: Wonder Drug For Shareholders Or Snake Oil?
    Sure Dividend Mon, Jun. 9 19 Comments

    Summary

    • Johnson & Johnson has 52 consecutive years of dividend increases.
    • International pharmaceutical sales increased 16.9% in Q1.
    • The company's growth is being driven by favorable long-term macro trends.
    • Johnson & Johnson has the lowest standard deviation of any Dividend Aristocrat.
    • The company generates 70% of revenue from products with No. 1 or No. 2 global leadership positions.
  • How Johnson & Johnson Is Executing Well
    Trefis Thu, Jun. 5 3 Comments

    Summary

    • J&J has traditionally been known for its medical devices and diagnostics equipment, but that is slowly changing.
    • Growth in the consumer and medical devices business is flattening out whereas certain therapeutic areas such as oncology and immunology offer attractive growth opportunities for the company's drugs.
    • There is a good chance that the company will continue to downsize its consumer and medical devices businesses and focus more on the growing pharmaceutical segment.
  • Is Johnson & Johnson Over-Priced? Shares Remain 29% To 36% Undervalued At Present
    Richard Berger Thu, Jun. 5 49 Comments

    Summary

    • Johnson & Johnson is one of the cream of the Dividend Aristocrats, is 128 years old and has raised its dividend each of the last 52 years.
    • Now testing new highs almost daily, the question of a JNJ bubble is hotly debated. The issue is evaluated and settled in this analysis, based on clear and simple criteria.
    • The compelling case that shares are presently 29% to 36% undervalued is presented here in clear and simple steps.
  • Johnson & Johnson Hasn't Been This Expensive In Years
    Jeroen Jongbloed Wed, Jun. 4 40 Comments

    Summary

    • Recently hitting a new 52-week high, shares in JNJ are now yielding only 2.73%.
    • Both the forward P/E and P/S ratios are at 5-year highs.
    • On the bright side: JNJ's balance sheet is looking great.
    • I'm staying on the sidelines for now, waiting for a better entry price.
  • Why Johnson & Johnson Is In My Retirement Portfolio
    Regarded Solutions Wed, Jun. 4 44 Comments

    Summary

    • Johnson & Johnson is a dividend champion that is in rarefied air.
    • The company offers so much for everyone that it has no real competition.
    • The global footprint is enormous.
  • Johnson & Johnson: Buy Now Or Wait For A Better Entry?
    Stock Gamer Mon, May. 26 8 Comments

    Summary

    • Fundamentals are healthy with improved outlook for the MD&D segment.
    • Valuations remain reasonable relative to those of peers and overall market.
    • Current valuation implies 6.0%-6.5% dividend growth rate and JNJ will have sufficient capacity to sustain dividend growth at above 6.0%.
    • With a pessimistic dividend yield assumption, downside risk is only ~12%.
  • 2 Retailers Spotlighted By Barrons As Turnaround Plays
    Bret Jensen Sun, May. 18 1 Comment

    Summary

    • This week's focus on possible Barrons bouncers for Monday is on two beaten-down retailers.
    • Both have seen better days, but a sunnier future could be in the future.
    • These retailers both have the aspects of a significant turnaround in place and should reward patient long-term investors.
  • Johnson & Johnson: Now What?
    Jacob Steinberg Wed, May. 14 42 Comments

    Summary

    • JNJ continues to reward investors with price appreciation and dividend raises.
    • The company still looks cheap compared to historical standards despite a recent rally.
    • The pharmaceutical sector of the company will continue to account for most of the growth as we move forward.
    • As the margins are back to where they were prior to the recession, things are looking up and the analysts covering the company have high expectations.
JNJ vs. ETF Alternatives
Company Description

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.