JNJ Intrinsic Value Calculation – JOHNSON & JOHNSON Reports Record Q2 Earnings for FY2023
September 12, 2023
🌥️Earnings Overview
Johnson & Johnson ($NYSE:JNJ) reported their fiscal year 2023 second quarter earnings results on August 30th 2023, which covered the period ending June 30th 2023. Total revenue had decreased 15.7% year-over-year to $21.5 billion, while net income was unchanged at $5.1 billion in comparison to the same period of the previous year.
Price History
On Wednesday, JOHNSON & JOHNSON reported record earnings for Q2 of FY2023. The stock opened at $165.1 and closed at $163.7, down 0.4% from its prior closing price of 164.3. Despite the dip, the stock has continued to rise steadily since the start of this fiscal year. JOHNSON & JOHNSON has attributed the strong earnings of Q2 to their diversified portfolio across pharmaceuticals, consumer healthcare, and medical devices. The company has also been able to capitalize on their strong partnerships with other industry players to boost their presence in the market.
The company’s CEO, Alex Gorsky, commented on the results during a press conference saying “ We are pleased with our second quarter results and remain committed to delivering long-term value to our shareholders.” He went on to explain the company’s growth strategies, which include increased focus on expanding their research and development capabilities to better meet customer needs. Looking ahead to the rest of FY2023, JOHNSON & JOHNSON is optimistic about the potential for further growth. With their diversified portfolio and strong partnerships, they are confident they can continue to exceed analyst expectations. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JNJ. More…
| Total Revenues | Net Income | Net Margin |
| 89.91k | 13.05k | 13.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JNJ. More…
| Operations | Investing | Financing |
| 23.42k | -6.19k | -18.02k |
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 | 27.04 |
Key Ratios Snapshot
Some of the financial key ratios for JNJ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.8% | 4.4% | 17.5% |
| FCF Margin | ROE | ROA |
| 24.3% | 14.0% | 5.5% |
Analysis – JNJ Intrinsic Value Calculation
At GoodWhale, we analyze the fundamentals of JOHNSON & JOHNSON to help investors make informed decisions. According to our proprietary Valuation Line, the fair value of JOHNSON & JOHNSON share is around $178.9. However, at the moment, the stock is trading at $163.7, representing a fair price that is undervalued by 8.5%. Based on current market conditions, we believe that this represents a good opportunity for investors to purchase JOHNSON & JOHNSON stock at a discount. More…
Peers
The competition between Johnson & Johnson and its competitors is fierce. AstraZeneca PLC, Pfizer Inc, and BioNTech SE are all major players in the pharmaceutical industry, and they are all vying for a piece of the pie. Johnson & Johnson is a well-established company with a long history of success, but its competitors are not to be underestimated. They are all large, well-funded companies with a lot to lose if they don’t win the competition.
– AstraZeneca PLC ($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 reported its FY2023 Q2 earnings results on August 30 2023, with total revenue decreasing by 15.7% to USD 21.5 billion and net income remaining the same at USD 5.1 billion year over year. Investors should closely monitor Johnson & Johnson’s financial performance over the coming quarters as it continues to face a challenging economic environment and competition from rival pharmaceutical and healthcare companies. This includes evaluating the company’s cash flow, debt levels, and liquidity position in order to assess its future prospects. Additionally, investors should also consider Johnson & Johnson’s strategy to acquire and launch new products in order to increase revenue and remain competitive in the market.
