The stock has performed well this year and seems to be on track to perform well for the rest of the year. Certainly something can pull that back and erase gains, but as of now, everything seems to be going well. Some other news to look at include the successful late-stage study of a combo HIV pill. There have been solid indication coming out of the phase 3 clinical trial which would be good news for investors.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Johnson Johnson income statement, its balance sheet, and the statement of cash flows. Potential Johnson Johnson investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Johnson Johnson investors may use each financial statement separately, they are all related. The changes in Johnson Johnson's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Johnson Johnson's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Johnson Johnson
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Johnson Johnson performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Johnson Johnson shares is the value that is considered the true value of the share. If
the intrinsic value of Johnson is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Johnson Johnson. Please read more on our
fundamental analysis page.
How effective is Johnson Johnson in utilizing its assets?
Johnson Johnson reports assets on its Balance Sheet. It represents the amount of Johnson resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Johnson Johnson aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Pharmaceuticals space. To get a better handle on how balance sheet or income statements item affect Johnson volatility, please check the breakdown of all its
fundamentals.
Are Johnson Johnson Earnings Expected to grow?
The
future earnings power of Johnson Johnson involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Johnson Johnson factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Johnson Johnson
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Johnson
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Johnson Johnson earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Johnson Johnson dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Johnson one year expected dividend income is about USD3.09 per share.
Dividend Paid And Capex Coverage Ratio is expected to hike to 4.30 this year, although the value of
Dividends Paid is projected to rise to (11.2
B).
Investing in dividend-paying stocks, such as Johnson Johnson is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Johnson Johnson must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Johnson Johnson. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Johnson Johnson Gross Profit
Johnson Johnson Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Johnson Johnson previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Johnson Johnson Gross Profit growth over the last 10 years. Please check Johnson Johnson's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
With everything going seemingly well, it is important to take a peek at some of the risks that could creep up and pull value down. First, this business relies heavily on tests and studies. This is because the products are typically medical related. Whether it is a mouthwash or a cream, these all need to be tested to ensure they are safe for human use. Secondly, you have to watch to ensure their product quality is up to par. It doesn’t take much for word to spread about a bad product and people to stop using it. Not only does that apply to medical, but it happens in almost every sector. Lastly, brand image is something that must be maintained. Many begin to trust a brand and become loyal, which is wonderful for recurring revenue. However, you want to be careful because you don’t want too much riding on just brand name.
Other items to consider are this market is heavily regulated so there may be political aspects that can come into play with the changing administrations. Certainly this will always fluctuate but it is worth knowing what is going on. Also, competition in this space is stiff. If you find another brand is winning, check out the fundamental data and see what they are about.
Fundamental analysis is a reliable method of analysis to use for a company such as this. There are multiple moving parts and you want to ensure everything is sound. Look for future product invention and understand where current projects are in testing. Johnson & Johnson is a household name and continues to be a widely trusted brand. Provided anything drastic, this company should be around for a while.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Johnson Johnson. Please refer to our
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