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
45.32%
2.18
19.59%
S&P 500
20.78%
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
74.67%
ROCE (avg)
432,803.06%
ROE (avg)
387,416.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
NA
EV to EBIT
23.62
EV to EBITDA
19.11
EV to Capital Employed
NA
EV to Sales
6.09
PEG Ratio
NA
Dividend Yield
2.35%
ROCE (Latest)
NA
ROE (Latest)
NA
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 24,530 MM
ROCE(HY)
Highest at 35.03%
DIVIDEND PER SHARE(HY)
Highest at USD 5.88
RAW MATERIAL COST(Y)
Fallen by 1.67% (YoY
NET SALES(Q)
Highest at USD 24,562 MM
NET PROFIT(Q)
Highest at USD 6,148.6 MM
-10What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,508.16
CASH AND EQV(HY)
Lowest at USD 38,664 MM
INTEREST(Q)
Highest at USD 490 MM
Here's what is working for Johnson & Johnson
Operating Cash Flow
Highest at USD 24,530 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 5.88 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 24,562 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 6,148.6 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by 1.67% (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 2,011 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 490 MM has Grown at 29.97%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,508.16
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 490 MM
in the last five periods and Increased by 29.97% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 38,664 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income
Highest at USD 0.22 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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