Johnson Johnson Stock Beneish M Score

JNJ Stock  USD 162.12  0.74  0.46%   
This module uses fundamental data of Johnson Johnson to approximate the value of its Beneish M Score. Johnson Johnson M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Johnson Johnson Piotroski F Score and Johnson Johnson Altman Z Score analysis.
For more information on how to buy Johnson Stock please use our How to buy in Johnson Stock guide.
  
At this time, Johnson Johnson's Total Debt is relatively stable as compared to the past year. Debt Current is expected to hike to about 4.5 B this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (3 B). At this time, Johnson Johnson's Accounts Payable Turnover is relatively stable as compared to the past year. Accrued Expenses Turnover is expected to hike to 4.04 this year, although the value of Cash and Equivalents Turnover will most likely fall to 4.42.
At this time, it appears that Johnson Johnson is an unlikely manipulator. The earnings manipulation may begin if Johnson Johnson's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Johnson Johnson executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Johnson Johnson's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.47
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.99

Focus
Asset Quality

1.07

Focus
Expense Coverage

0.9

Focus
Gross Margin Strengs

0.94

Focus
Accruals Factor

0.9

Focus
Depreciation Resistance

1.04

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.99

Focus

Johnson Johnson Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Johnson Johnson's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense20.3 B21.5 B
Notably Down
Slightly volatile
Revenues89.8 B85.2 B
Notably Up
Slightly volatile
Trade and Non Trade Receivables15.5 B14.9 B
Sufficiently Up
Slightly volatile
Property Plant and Equipment Net20.6 B19.9 B
Sufficiently Up
Slightly volatile
Operating Income22.5 B21.2 B
Notably Up
Pretty Stable
Net Cash Flow from Operations24.2 B22.8 B
Notably Up
Slightly volatile
Liabilities Non Current58 B52.5 B
Significantly Up
Slightly volatile
Current Liabilities45 B46.3 B
Fairly Down
Slightly volatile
Total Liabilities103 B98.8 B
Sufficiently Up
Slightly volatile
Investments Current1.1 B1.1 B
Fairly Up
Slightly volatile
Investments1.1 B1.1 B
Fairly Up
Slightly volatile
Gross Margin0.650.688
Notably Down
Slightly volatile
Depreciation Amortization and Accretion7.3 B7.5 B
Fairly Down
Slightly volatile
Debt Non Current27.5 B25.9 B
Notably Up
Slightly volatile
Debt Current4.5 B3.5 B
Significantly Up
Slightly volatile
Total Debt32 B29.3 B
Significantly Up
Slightly volatile
Assets Non Current119.2 B114.1 B
Sufficiently Up
Slightly volatile
Current Assets50.8 B53.5 B
Notably Down
Slightly volatile
Total Assets178.6 B167.6 B
Notably Up
Slightly volatile

Johnson Johnson Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Johnson Johnson's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Johnson Johnson in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Johnson Johnson's degree of accounting gimmicks and manipulations.

About Johnson Johnson Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

39.01 Billion

At this time, Johnson Johnson's Operating Expenses is relatively stable as compared to the past year.

Johnson Johnson ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Johnson Johnson's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Johnson Johnson's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Johnson Johnson Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Johnson Johnson's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Johnson Johnson using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Johnson Johnson based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Johnson Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company was founded in 1886 and is based in New Brunswick, New Jersey. Johnson Johnson operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 141700 people.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Johnson Johnson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Johnson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Johnson Johnson Stock. Highlighted below are key reports to facilitate an investment decision about Johnson Johnson Stock:

Complementary Tools for Johnson Stock analysis

When running Johnson Johnson's price analysis, check to measure Johnson Johnson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Johnson is operating at the current time. Most of Johnson Johnson's value examination focuses on studying past and present price action to predict the probability of Johnson Johnson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Johnson's price. Additionally, you may evaluate how the addition of Johnson Johnson to your portfolios can decrease your overall portfolio volatility.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Is Johnson Johnson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Johnson Johnson. If investors know Johnson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Johnson Johnson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.106
Dividend Share
4.7
Earnings Share
5.2
Revenue Per Share
33.613
Quarterly Revenue Growth
0.073
The market value of Johnson Johnson is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Johnson's value that differs from its market value or its book value, called intrinsic value, which is Johnson Johnson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Johnson Johnson's market value can be influenced by many factors that don't directly affect Johnson Johnson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Johnson Johnson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Johnson Johnson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Johnson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.