JNJ Intrinsic Value Calculation – J&J CFO & Pharma Head in Contention for CEO Role

December 5, 2023

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Johnson & Johnson ($NYSE:JNJ) (J&J) is a well-established and widely-recognized multinational healthcare company. Recent news about J&J has been that their CFO and the head of pharmaceuticals have been said to be contenders for the role of the company’s next CEO. This has caused speculation to arise among investors and analysts about who will take the helm of the giant healthcare organization. The two potential candidates have experience with the company and within their respective areas of expertise.

Regardless of who takes the role, there is no doubt that J&J will continue to be a leader in the healthcare field and provide quality products to its customers. With two highly qualified individuals in contention for the CEO position, investors, analysts, and consumers alike are eager to see who will lead this giant organization into the future.

Share Price

On Monday, JOHNSON & JOHNSON stock opened at $158.0 and closed at $158.9, up by 0.3% from the previous closing price of 158.4. This jump in the stock price came as news circulated that the CFO and head of Pharmaceuticals for J&J are both in contention for the CEO role. This news has excited investors, who are optimistic about the future of J&J under the new leader. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for JNJ. More…

    Total Revenues Net Income Net Margin
    98.66k 34.62k 13.3%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for JNJ. More…

    Operations Investing Financing
    23.42k -6.19k -18.02k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for JNJ. More…

    Total Assets Total Liabilities Book Value Per Share
    179.23k 108.96k 29.19
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for JNJ are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    6.9% 7.9% 24.4%
    FCF Margin ROE ROA
    24.3% 21.4% 8.4%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – JNJ Intrinsic Value Calculation

    At GoodWhale, we have conducted an analysis of JOHNSON & JOHNSON’s wellbeing. We believe that the fair value of a JOHNSON & JOHNSON share is around $179.5, which is the price calculated by our proprietary Valuation Line. However, at the time of writing, stocks of JOHNSON & JOHNSON are currently being traded at $158.9, which is a fair price that is undervalued by 11.5%. This presents a great buying opportunity for savvy investors in the stock market. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The competition between Johnson & Johnson and its competitors is fierce. AstraZeneca PLC, Pfizer Inc, and BioNTech SE are all major players in the pharmaceutical industry, and they are all vying for a piece of the pie. Johnson & Johnson is a well-established company with a long history of success, but its competitors are not to be underestimated. They are all large, well-funded companies with a lot to lose if they don’t win the competition.

    – AstraZeneca PLC ($LSE:AZN)

    AstraZeneca PLC is a biopharmaceutical company with a market cap of 152.13B as of 2022. The company focuses on the discovery, development, and commercialization of small molecule drugs in the areas of oncology, cardiovascular, and renal & metabolism. The company’s ROE for the year ended December 31, 2020 was -0.94%.

    – Pfizer Inc ($NYSE:PFE)

    Pfizer Inc is a pharmaceutical company with a market cap of 240.55B as of 2022. The company has a return on equity of 24.63%. Pfizer Inc is a research-based, global pharmaceutical company that discovers, develops, manufactures, and markets medicines for humans and animals. The company’s products include prescription and over-the-counter medicines, vaccines, and biologic therapies.

    – BioNTech SE ($NASDAQ:BNTX)

    BioNTech SE is a German biotech company founded in 2008 that focuses on the development of Innovation therapies against cancer and other serious diseases. The company has a market cap of 32.91B as of 2022 and a Return on Equity of 71.82%. BioNTech’s mission is to revolutionize the treatment of cancer and other serious diseases by leveraging the power of the immune system. The company is developing a portfolio of immunotherapy products based on its proprietary mRNA technology platform.

    Summary

    Johnson & Johnson (J&J) is an attractive investment opportunity for investors, as reports suggest that the CFO and head of pharma are in the running to be the company’s next CEO. This is likely to bring fresh perspectives and innovative ideas to the company, positively impacting overall performance. J&J has a long history of delivering solid returns, with a robust balance sheet and a diversified portfolio of products. It has delivered strong growth over the past decade, with a focus on driving innovation, expanding into new markets, and investing in new technologies.

    Its wide product range provides stability in volatile markets and its low debt levels provide room for additional growth. The company also pays out a steady dividend yield, making it attractive for income investors. With its strong track record and experienced leadership, J&J is well positioned to deliver consistent returns for long-term investors.

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