Johnson & Johnson researches and develops, manufactures, and sells various products in the health-care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. Some of its well-known brands include Tylenol-fever, Listerine-bad breath, Splenda-no-calorie sweetener, Neutrogena-skin care, Pepcid-heartburn, Zyrtec - allergy, Motrin-ibuprofen, Sudafed-allergy, and plenty more. The company was founded in 1885 and is based in New Brunswick, New Jersey.
JNJ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Johnson & Johnson. To summarize, we found that Johnson & Johnson ranked in the 27th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Johnson & Johnson, consider:
In the past 5.74 years, Johnson & Johnson has a compound free cash flow growth rate of 0.03%; that's higher than merely 24.14% of free cash flow generating stocks in the Healthcare sector.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately just 18.2% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
JNJ's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 41.02% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HAPP, XRAY, CPIX, WAT, and HOLX can be thought of as valuation peers to JNJ, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Johnson & Johnson (JNJ) Morgan Stanley 18th Annual Global Healthcare Conference Call September 16, 2020 10:15 ET Company Participants Alex Gorsky - Chairman and Chief Executive Officer Conference Call Participants David Lewis - Morgan Stanley Presentation David Lewis I want to welcome to the Morgan Stanley Healthcare Conference 2020. Thanks...
SA Transcripts on Seeking Alpha | September 16, 2020
COMPANY CLOSE UPDATES Terrence Horan Shares of Johnson & Johnson JNJ dropped 0.33% to $148.40 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average DJIA rising 0.
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Donovan Jones on Seeking Alpha | September 15, 2020
News of serious side effects in one participant of AstraZeneca's Covid-19 vaccine trial led some volunteers in Johnson & Johnson's vaccine trial in Spain to drop out, its lead investigator told Reuters on Tuesday