JNJ Stock Intrinsic Value – JOHNSON & JOHNSON Releases Second Quarter Fiscal Year 2023 Earnings Results on July 31, 2023
August 20, 2023
🌥️Earnings Overview
On July 31 2023, JOHNSON & JOHNSON ($NYSE:JNJ) reported their earnings results for the second quarter of fiscal year 2023 (ending June 30 2023). Total revenue for the quarter amounted to USD 25.5 billion, representing no change from the same period in the previous year. Net income was also USD 5.1 billion, showing no difference compared to the same period last year.
Share Price
The stock opened at $169.7 on the day, but closed at $167.5 per share, down by 4.0% from its last closing price of 174.5. The company reported that its earnings were largely in-line with analysts’ estimates, however, the market’s reaction was negative, leading to the decline in share price. Despite the negative response, JOHNSON & JOHNSON reported better than expected revenue growth in its consumer health business, as well as improved profit margins in its pharmaceutical division.
These results suggest promise for the company’s future prospects, and may potentially lead to an increase in share price over the upcoming weeks. Analysts have maintained a positive outlook on the stock and are confident that JOHNSON & JOHNSON will continue to show strong performance in the long-term. 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 |
| 97.77k | 13.05k | 12.5% |
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 |
| 6.7% | 6.9% | 24.3% |
| FCF Margin | ROE | ROA |
| 24.3% | 21.1% | 8.3% |
Analysis – JNJ Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of JOHNSON & JOHNSON’s financials. According to our proprietary Valuation Line, the intrinsic value of JOHNSON & JOHNSON share is around $179.2. This means that the stock is currently undervalued by 6.6%, with its price at $167.5. We believe that this is a fair price for the stock, and that investors could benefit from investing in it at this price. More…
Peers
The competition between Johnson & Johnson and its competitors is fierce. AstraZeneca PLC, Pfizer Inc, and BioNTech SE are all major players in the pharmaceutical industry, and they are all vying for a piece of the pie. Johnson & Johnson is a well-established company with a long history of success, but its competitors are not to be underestimated. They are all large, well-funded companies with a lot to lose if they don’t win the competition.
– AstraZeneca PLC ($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 their earnings results for the second quarter of 2023 on July 31st, with total revenue of USD 25.5 billion and a reported net income of USD 5.1 billion, both unchanging from the same period last year. Despite this, the company’s stock price dropped on the same day, which is concerning for potential investors. It is important to thoroughly research the company’s financial performance and industry outlook before making an investment decision. Investors should consider factors such as potential risks and rewards, the company’s competitive advantage and future prospects.
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