Johnson&Johnson
Ticker: ● JNJ:US Recommendation: ● Buy
Price: ● USD 90.4
Price Target: ● USD 110.13
2010
2011
2012
2013F
2014F
2015F
2016F
2017F
In million
Revenue
61,587
65,030
67,224
70,237
73,385
76,674
80,111
83,702
Net income
13,334
9,672
10,853
12,178
13,665
13,334
14,962
16,789
Per share
EPS
4.4
3.49
3.86
3.68
3.60
3.65
3.70
3.75
Dividend/ share
2.11
2.25
2.40
2.40
2.44
2.45
2.3
2.5
BV per share
20.60
20.90
23.33
23.38
23.80
24.00
24.05
24.10
%
ROA %
13.79%
8.68%
9.19%
8.74%
8.53%
9.10%
8.34%
8.20%
ROE%
24.28%
16.08%
17.34%
16.32%
16.45%
16.50%
16.65%
17.09%
Source: Company data and team’s estimates
Highlights
Valuation indicates a buy signal: The JNJ stock is currently undervalue and expect to outperform in the future. The actual price is $90.40 compare with the target price of $110.13; we will get 21.82% gain from buying this stock. The historical earnings show the company has growth every year, therefore we expect the company to have high potential growth in the future as well.
Experienced company: Johnson & Johnson was founded in 1886 and listed on the NYSE in 1944. Throughout these 127 years, Johnson & Johnson have built up a solid based in the industry. It has faced many obstacles in the past and it is able to overcome them. By investing in this stable company, there is a low default risk.
Dominate the market: By comparing Johnson & Johnson with its competitors, such as Pfizer, Novartis, and Covidien, we see that Johnson & Johnson is far away successful than these competitors. Johnson & Johnson has widely expanded its stores internationally, in which not every company could afford. In addition, JNJ’s strong capital base is strength against other small heath care businesses. By having strong
Price: ● USD 90.4
Price Target: ● USD 110.13
2010
2011
2012
2013F
2014F
2015F
2016F
2017F
In million
Revenue
61,587
65,030
67,224
70,237
73,385
76,674
80,111
83,702
Net income
13,334
9,672
10,853
12,178
13,665
13,334
14,962
16,789
Per share
EPS
4.4
3.49
3.86
3.68
3.60
3.65
3.70
3.75
Dividend/ share
2.11
2.25
2.40
2.40
2.44
2.45
2.3
2.5
BV per share
20.60
20.90
23.33
23.38
23.80
24.00
24.05
24.10
%
ROA %
13.79%
8.68%
9.19%
8.74%
8.53%
9.10%
8.34%
8.20%
ROE%
24.28%
16.08%
17.34%
16.32%
16.45%
16.50%
16.65%
17.09%
Source: Company data and team’s estimates
Highlights
Valuation indicates a buy signal: The JNJ stock is currently undervalue and expect to outperform in the future. The actual price is $90.40 compare with the target price of $110.13; we will get 21.82% gain from buying this stock. The historical earnings show the company has growth every year, therefore we expect the company to have high potential growth in the future as well.
Experienced company: Johnson & Johnson was founded in 1886 and listed on the NYSE in 1944. Throughout these 127 years, Johnson & Johnson have built up a solid based in the industry. It has faced many obstacles in the past and it is able to overcome them. By investing in this stable company, there is a low default risk.
Dominate the market: By comparing Johnson & Johnson with its competitors, such as Pfizer, Novartis, and Covidien, we see that Johnson & Johnson is far away successful than these competitors. Johnson & Johnson has widely expanded its stores internationally, in which not every company could afford. In addition, JNJ’s strong capital base is strength against other small heath care businesses. By having strong