Johnson & Johnson [NYSE: JNJ] shares went lower by -0.27% from its previous closing of $130.43, now trading at the price of $130.08, also adding -0.35 points. Is JNJ stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.79 million contracts. Compared to the average trading volume of JNJ shares, the company saw a far better performance. Moreover, the stock has a 2.64B float and a +1.52% run over in the last seven days. JNJ share price has been hovering between $148.99 and $121.00 lately, and is definitely worthy of attention.
Johnson & Johnson [NYSE:JNJ]: Analyst Rating and Earnings
Its stock price has been found in the range of 121.00 to 148.99. This is compared to its latest closing price of $130.43.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 15 Oct (In 32 Days).
Fundamental Analysis of Johnson & Johnson [JNJ]
Now let’s turn to look at profitability: with a current Operating Margin for Johnson & Johnson [JNJ] sitting at +26.07 and its Gross Margin at +66.66, this company’s Net Margin is now 20.10%. These measurements indicate that Johnson & Johnson [JNJ] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 22.98, and its Return on Invested Capital has reached 17.00%. Its Return on Equity is 25.51, and its Return on Assets is 9.86. These metrics all suggest that Johnson & Johnson is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Johnson & Johnson [JNJ] has generated a Total Debt to Total Equity ratio of 51.01. Similarly, its Total Debt to Total Capital is 33.78, while its Total Debt to Total Assets stands at 19.93. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 16.60, and its Long-Term Debt to Total Capital is 46.33.
What about valuation? This company’s Enterprise Value to EBITDA is 12.42 and its Total Debt to EBITDA Value is 1.08. The Enterprise Value to Sales for this firm is now 4.30, and its Total Debt to Enterprise Value stands at 0.09. Johnson & Johnson [JNJ] has a Price to Book Ratio of 5.67, a Price to Cash Flow Ratio of 15.64 and P/E Ratio of 21.56. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Johnson & Johnson [JNJ] earns $603,509 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.91 and its Total Asset Turnover is 0.53. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.20 and its Current Ratio is 1.47. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Johnson & Johnson [JNJ] has 2.65B shares outstanding, amounting to a total market cap of $345.22B. Its stock price has been found in the range of 121.00 to 148.99. At its current price, it has moved down by -12.69% from its 52-week high, and it has moved up 7.50% from its 52-week low.
This stock’s Beta value is currently 0.69, which indicates that it is 1.54% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.76. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Johnson & Johnson [JNJ] a Reliable Buy?
Shares of Johnson & Johnson [JNJ], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.