ScoreWhy is Johnson & Johnson ?
1
High Management Efficiency with a high ROCE of 432,803.06%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.26 times
3
Poor long term growth as Operating profit has grown by an annual rate 0.96% of over the last 5 years
4
Flat results in Jun 25
- DEBT-EQUITY RATIO (HY) Highest at 40.63 %
- INTEREST(Q) Highest at USD 432 MM
5
With ROCE of 23.24%, it has a very attractive valuation with a 5.05 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 34.77%, its profits have fallen by -3.1%
6
Market Beating Performance
- The stock has generated a return of 34.77% in the last 1 year, much higher than market (S&P 500) returns of 12.94%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Johnson & Johnson should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Johnson & Johnson for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Johnson & Johnson
34.57%
2.05
19.30%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.39%
EBIT Growth (5y)
0.96%
EBIT to Interest (avg)
24.32
Debt to EBITDA (avg)
0.26
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.81
Tax Ratio
17.14%
Dividend Payout Ratio
84.80%
Pledged Shares
0
Institutional Holding
74.50%
ROCE (avg)
432,803.06%
ROE (avg)
387,416.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
5.74
EV to EBIT
21.71
EV to EBITDA
16.16
EV to Capital Employed
5.05
EV to Sales
5.17
PEG Ratio
NA
Dividend Yield
2.91%
ROCE (Latest)
23.24%
ROE (Latest)
25.13%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 30.21%
DIVIDEND PER SHARE(HY)
Highest at USD 5.39
RAW MATERIAL COST(Y)
Fallen by 0.74% (YoY
NET SALES(Q)
Highest at USD 23,741 MM
OPERATING PROFIT(Q)
Highest at USD 8,782 MM
OPERATING PROFIT MARGIN(Q)
Highest at 36.99 %
NET PROFIT(Q)
Highest at USD 5,920.86 MM
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 40.63 %
INTEREST(Q)
Highest at USD 432 MM
Here's what is working for Johnson & Johnson
Dividend per share
Highest at USD 5.39 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 23,741 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 8,782 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 36.99 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at USD 5,920.86 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by 0.74% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 1,943 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Johnson & Johnson
Interest
At USD 432 MM has Grown at 50.52%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 432 MM
in the last five periods and Increased by 50.52% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 40.63 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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