JNJ Intrinsic Value – JOHNSON & JOHNSON Reports Fourth Quarter FY2022 Earnings with 25.7% Revenue Decrease and 4.4% Net Income Decrease.
January 30, 2023
Earnings report
JNJ Intrinsic Value – On December 31, 2022, JOHNSON & JOHNSON ($NYSE:JNJ) reported their earnings results for the fourth quarter of FY2022, ending on January 24, 2023. JOHNSON & JOHNSON is a publicly traded healthcare company that manufactures and markets products in the pharmaceutical, consumer, and medical devices industries. The company’s products include a variety of treatments and remedies for common illnesses and injuries, as well as products for skin care, baby care, and oral care. For the fourth quarter of FY2022, JOHNSON & JOHNSON reported total revenue of USD 3.5 billion, a decrease of 25.7% compared to the same period last year. Net income for the quarter was USD 23.7 billion, a decrease of 4.4% year over year.
This decrease was mainly driven by a decrease in sales in the consumer and medical devices divisions. Despite the decrease in revenue and net income for the fourth quarter, JOHNSON & JOHNSON’s overall performance was still strong. JOHNSON & JOHNSON’s strong overall performance during FY2022 reflects their ability to weather difficult economic conditions. Despite the decrease in revenue and net income for the fourth quarter, the company was still able to maintain its profitability and growth.
Market Price
On Tuesday, JOHNSON & JOHNSON reported their fourth quarter financial earnings for FY2022, with a 25.7% decrease in revenue and a 4.4% decrease in net income. This news had an immediate impact on the company’s stock which opened at $175.0 and closed at $168.3. JOHNSON & JOHNSON is a global manufacturer of health care products, household supplies, and personal care items. The decrease in revenue is attributed to the decrease in sales across the board. The company’s net income also saw a 4.4% decrease from the previous year. The company attributed this increase to the rising costs of raw materials, labor, and marketing expenses.
The company is still confident that they will be able to reach their growth targets for next quarter and the coming year. They are taking steps to improve their efficiency and reduce their expenses in order to remain competitive in the market. They are also investing in research and development to ensure they continue to provide innovative products and services to their customers. JOHNSON & JOHNSON is clearly feeling the effects of the pandemic, but they are taking the necessary steps to ensure their long-term success. Despite the decrease in revenue and net income, the company is still optimistic about its future prospects. 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 |
| 94.94k | 17.94k | 19.2% |
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 | 26.88 |
Key Ratios Snapshot
Some of the financial key ratios for JNJ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.0% | 4.2% | 25.0% |
| FCF Margin | ROE | ROA |
| 24.3% | 21.1% | 8.3% |
VI Analysis – JNJ Intrinsic Value
Analyzing JOHNSON & JOHNSON’s long-term potential has become easier with the help of the VI app. It takes into account the company’s fundamentals, such as its financial ratios, historical data, and other indicators, to provide an accurate valuation. According to the app, the intrinsic value of a JOHNSON & JOHNSON share is around $175.6, as calculated by our proprietary VI Line. Currently, the stock is traded at $168.3, which is a fair price but undervalued by 4.2%. Investors can use this information to make informed decisions on their portfolio. For example, they may choose to buy JOHNSON & JOHNSON stock at the current market price and wait for it to increase in value over time. Alternatively, they may decide to buy more shares as the price falls below the intrinsic value. The VI app also provides other useful information about JOHNSON & JOHNSON such as its dividend yield, EPS growth rate, and return on equity. Additionally, investors can compare JOHNSON & JOHNSON’s performance with that of its peers in order to get an idea of its competitive advantages. Overall, the VI app makes it easier to analyze and evaluate JOHNSON & JOHNSON’s long-term potential. With its help, investors can make better decisions regarding their investments in the company. More…
VI Peers
The competition between Johnson & Johnson and its competitors is fierce. AstraZeneca PLC, Pfizer Inc, and BioNTech SE are all major players in the pharmaceutical industry, and they are all vying for a piece of the pie. Johnson & Johnson is a well-established company with a long history of success, but its competitors are not to be underestimated. They are all large, well-funded companies with a lot to lose if they don’t win the competition.
– AstraZeneca PLC ($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
Investors in Johnson & Johnson were presented with mixed results for the fourth quarter of FY2022, ending on January 24, 2023. Total revenue for the quarter was USD 3.5 billion, a decrease of 25.7% compared to the same period last year. Net income was USD 23.7 billion, a decrease of 4.4% year over year. Despite the quarterly decline in revenue and net income, Johnson & Johnson has continued to make strategic investments that should provide long-term growth opportunities.
The company has been focusing on expanding its presence in emerging markets, as well as investing in innovative technologies and new products. Furthermore, Johnson & Johnson’s strong product portfolio and diverse business model have helped it to remain resilient despite the economic downturn. Looking ahead, investors may find that Johnson & Johnson’s strategies could help the company weather any further economic challenges and emerge with a more secure financial position.
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