Stock Under Review: Johnson & Johnson (JNJ)


Johnson & Johnson (JNJ) share price fell -0.11% to $133.09 in the last trading session. The Market Cap of the company is $359.36 Billion. The stock’s current distance from 20-Day Simple Moving Average (SMA20) is 0.11%, whereas SMA50 and SMA200 are 0.27% and 8.45% respectively. The Average Volume of the company is 5.75 Million, while the Volume of the company in the last trading session was 5.58 Billion.

Insider Trading

Insider trading is selling or purchasing of a security by someone who has access to material non-public information related to the security. Insider trading can legal or illegal at the same time, depending on when the insider makes the trade. It is illegal when the material information is still non-public—trading while having special information is deceitful to other traders who do not have access to such information.

“JNJ’s Exec VP, Chief Scientific Off Stoffels Paulus Sell 102692 shares of the company at a price of $133.14 on 2017-07-24. Separately, Exec VP, Finance; CFO Caruso Dominic J Sell 82591 shares of the company at a price of $136.72 on 2017-07-20.”

Piotroski F-Score

The Piotroski score is a discrete score ranging from 0-9 that shows nine criteria used to find out the strength of a company’s financial position. It is used to find out the best value stocks, 9 being the best. The company is given one point for every criteria that is met and no points if not met. Subsequently, the points are added up to determine the best value stocks.

JNJ’s mean Piotroski F-Score: 5 in the past 7 years.

Altman Z-Score

The Altman Z-score is a statistical tool used to calculate the likelihood of a company’s bankruptcy. It depends on 5 financial ratios, which can be calculated from data found on a firm’s annual 10K report. A score above three means the company is not likely to go bankrupt, while score less than 1.8 suggests the firm is probably headed for bankruptcy.

JNJs average Altman Z-Score: 4.69 in the past 7 years.

Free Cash Flow Growth

FCF is an indicator of a firm’s financial performance, measured as operating cash flow minus capital expenditures. It shows the cash a company is able to generate after spending the money need to maintain or grow its asset base. FCF is an important factor as it enables a company to pursue opportunities that boost shareholder value.

Johnson & Johnson’s average Free Cash Flow per Share Growth Rate was 23.9 percent during the past 12 months.

Book Value Growth

It is the net asset value of a company, calculated as total assets minus intangible assets and liabilities. Book value refers to the total amount a firm would be worth if it liquidated its assets and paid back all its liabilities.

Johnson & Johnson’s average Book Value per Share Growth Rate was 0.8 percent during the past 12 months.

Profitability and Growth Analysis

Johnson & Johnson (JNJ) shows its Return on Assets (ROA) value of 11.3 percent, while the Return on Equity (ROE) value is 22.9 percent and Return on Investment (ROI) value stands at 17 percent. The company’s Relative strength index is 52.04.

Analyst Recommendations Analysis

Among analysts who offered their Analysis on Johnson & Johnson (JNJ)—4 analysts issued Buy for the stock, 5 analysts gave Outperform rating, 10 think it’s a Hold, 0 issued Underperform, while 2 analyst gave a Sell rating. (These Recommendations are reported by Reuters and are only for the Current Month)

Quarterly Profit Outlook Analysis

A number of analysts offered their Estimated Earnings analysis for Johnson & Johnson (JNJ) for the current quarter. 19 analysts on average projected earnings of $1.79 per share for the current quarter. The High end of the forecast is $1.85 per share, while the Low end is $1.73 per share.

Quarterly Revenue Outlook Analysis

Average Revenue Estimate for the current quarter is $19.29 Billion, according to consensus forecast of 17 analysts. The High end of the Estimate is $19.41 Billion, while the Low end of the Estimate is $19.04 Billion. The company had Year Ago Sales of $18.58 Billion.