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 43.21%, its profits have fallen by -3.1%
6
Market Beating Performance
- The stock has generated a return of 43.21% in the last 1 year, much higher than market (S&P 500) returns of 14.11%
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
60.47%
2.18
19.59%
S&P 500
16.26%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.67%
EBIT Growth (5y)
4.60%
EBIT to Interest (avg)
24.32
Debt to EBITDA (avg)
0.26
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.78
Tax Ratio
17.14%
Dividend Payout Ratio
46.59%
Pledged Shares
0
Institutional Holding
75.48%
ROCE (avg)
432,803.06%
ROE (avg)
387,416.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
8.54
EV to EBIT
28.27
EV to EBITDA
21.87
EV to Capital Employed
6.62
EV to Sales
7.69
PEG Ratio
2.19
Dividend Yield
1.94%
ROCE (Latest)
23.43%
ROE (Latest)
27.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 27,608 MM
DIVIDEND PER SHARE(HY)
Highest at USD 5.31
INTEREST COVERAGE RATIO(Q)
Highest at 2,568.87
RAW MATERIAL COST(Y)
Fallen by -0.36% (YoY
NET SALES(Q)
Highest at USD 25,317 MM
OPERATING PROFIT(Q)
Highest at USD 9,325 MM
PRE-TAX PROFIT(Q)
Highest at USD 7,874 MM
NET PROFIT(Q)
Highest at USD 6,458.38 MM
-4What is not working for the Company
INTEREST(9M)
At USD 1,271 MM has Grown at 28.77%
CASH AND EQV(HY)
Lowest at USD 42,809 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.31 times
Here's what is working for Johnson & Johnson
Interest Coverage Ratio
Highest at 2,568.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 5.31 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 27,608 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 25,317 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 9,325 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 7,874 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 6,458.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -0.36% (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
Here's what is not working for Johnson & Johnson
Interest
At USD 1,271 MM has Grown at 28.77%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 42,809 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 5.31 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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