J&J is an American multinational company that has been around since 1886. It makes drugs, medical devices, and consumer goods.
In terms of sales in the United States, the company is in the top 40. Johnson & Johnson is also one of the companies with the highest dividends. The American company has raised its profit for 60 years in a row. Investors are getting a dividend yield of 2.7% right now.
Diversification is built into the company’s core, which helps it stay strong. The conglomerate is made up of close to 250 different companies. Some of the household staples that JNJ is known for are Tylenol, Neutrogena, Listerine, and the company’s own brand.
J&J has almost $18 billion in free cash flow, but almost $23 billion in debt, which is 9% less than last year. All of this is done while the company has a triple-A credit rating, which should give it enough money to invest in more growth.
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The company just announced its fourth-quarter earnings in January 2023, which were 5% higher than what was expected. But sales went down from the third quarter. Analysts are still hopeful about the company’s earnings growth potential, though.
Forward guidance says that Coca-Cola sales could go up by 5% from one year to the next in 2023, with earnings per share (EPS) going up by more than 4%. The price of JNJ stock is still below $200, but that might not last for long. The company is only 22% away from being too expensive for us to consider.
The forward price-to-earnings (P/E) ratio for the company is 14x. When compared to similar companies like Procter & Gamble, which have a forward P/E of 22x, this is a pretty low number.