Johnson Johnson Stock Beneish M Score

JNJ Stock  USD 158.19  0.23  0.15%   
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 Cash Flow To Debt Ratio is relatively stable compared to the past year. At this time, Johnson Johnson's Price To Free Cash Flows Ratio is relatively stable compared to the past year. Ebt Per Ebit is expected to hike to 0.77 this year, although the value of Price To Sales Ratio will most likely fall to 2.79.
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.
-2.88
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.92

Focus
Asset Quality

1.35

Focus
Expense Coverage

1.52

Focus
Gross Margin Strengs

1.12

Focus
Accruals Factor

1.52

Focus
Depreciation Resistance

0.74

Focus
Net Sales Growth

0.59

Focus
Financial Leverage Condition

1.0

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
Net ReceivablesB14.9 B
Way Down
Slightly volatile
Total Revenue50.1 B85.2 B
Way Down
Slightly volatile
Total Assets175.9 B167.6 B
Sufficiently Up
Slightly volatile
Total Current Assets31.1 B53.5 B
Way Down
Pretty Stable
Non Current Assets Total119.8 B114.1 B
Sufficiently Up
Slightly volatile
Property Plant Equipment15.8 B22.8 B
Way Down
Slightly volatile
Depreciation And Amortization7.9 B7.5 B
Sufficiently Up
Slightly volatile
Selling General Administrative19.2 B21.5 B
Moderately Down
Slightly volatile
Total Current Liabilities48.6 B46.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total55.1 B52.5 B
Sufficiently Up
Slightly volatile
Short Term DebtB3.5 B
Fairly Down
Very volatile
Long Term Debt15.4 B25.9 B
Way Down
Slightly volatile
Operating Income11.9 B21.9 B
Way Down
Slightly volatile
Total Cash From Operating Activities13.5 B22.8 B
Way Down
Slightly volatile
Short Term InvestmentsB1.1 B
Notably Down
Pretty Stable
Long Term Investments739.5 MB
Way Down
Slightly volatile
Gross Profit Margin0.770.686
Moderately Up
Very 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.

Other Operating Expenses

37.62 Billion

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

Johnson Johnson Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Johnson Johnson. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables14.5B13.6B15.3B16.2B14.9B8.0B
Total Revenue82.1B82.6B93.8B94.9B85.2B50.1B
Total Assets157.7B174.9B182.0B187.4B167.6B175.9B
Total Current Assets45.3B51.2B61.0B55.3B53.5B31.1B
Net Debt10.4B21.3B19.3B25.5B8.6B9.0B
Short Term Debt1.2B2.6B3.8B12.8B3.5B3.0B
Long Term Debt26.5B32.6B30.0B26.9B25.9B15.4B
Operating Income21.0B19.8B24.4B23.9B21.9B11.9B
Investments(533M)(9.0B)(5.4B)9.2B878M921.9M

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.

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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:
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.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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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.
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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.