JNJ · Verdict

A summary of rules, not a profit forecast — don’t buy just because of a green verdict.

• ▼ P/E 41.5 — expensive for this stock (over 10 y: from 11.4 to 297.3)
• ▼ P/S 6.6 — expensive for this stock (over 10 y: from 4.0 to 5.9)
• ▼ EV/EBITDA 19.9 — expensive for this stock (over 5 y: from 12.9 to 18.3)
• ▲ EV/EBITDA 19.9 vs peer median 22.3 — cheaper than peers
• ▼ FCF yield 2.9% — expensive for this stock (over 10 y: from 3.7% to 5.3%)
• ▼ FCF yield 2.9% vs peer median 3.4% — more expensive than peers
• ▲ Forward P/E 23.5 is below the current one — earnings growth expected

• ▼ Debt up 63% in 3 y
• ▲ Has raised its dividend 53 years in a row
• ▼ Piotroski 3/9 — weak financial health
• ▲ ROE 20% — high return on equity
• ▼ Net margin fell: 41.3% → 28.5%
• ▲ Debt / equity 0.59 — moderate debt
• ▲ Free cash flow positive every year

• ▲ Earnings per share grows 14.9% per year (5 y)
• ▼ Analysts cut the earnings forecast by -4.8% in 90 days

• ▼ Over 6 mo weaker than its sector (XLV) by 8%
• ▲ Price above SMA200 — long-term uptrend
• ▲ SMA50 above SMA200 — trend up
• ▲ Over a year +45% vs S&P 500 +11% — stronger than the market

• ▲ Risk/reward 1:4.4 — the target is farther than the stop
• ▲ Max drawdown in the period -24% — shallow

• ▲ Consensus of 22 analysts — buy
• ▼ Insiders selling over 6 mo

• ▲ S&P 500 above SMA200 — the market is in an uptrend
• ▲ Sector (XLV) above SMA200 — in an uptrend
• ▲ Sector (XLV) over 3 mo is stronger than the market by 11%