Johnson & Johnson

www.InvestingSidekick.com

JNJ

Value Report

I.S.Q. Score: 10/10

TTM EPS:
Next year EPS estimate:
Net cash* / (debt) p.s:
Net debt EBITDA:
Net debt Equity:

5.74
6.41
4.45
-

Op. profit p.s.

Jun

Sep

Dec

Mar

TTM

12M ending 2015

12M ending 2014
12M ending 2013
12M ending 2012
12M ending 2011

2.03
1.74
0.69
1.29
1.55

2.47
1.33
1.34
1.55
1.57

0.99
1.90
1.73
1.18
0.57

2.05
1.96
1.56
1.88
1.68

7.55
6.93
5.33
5.90
5.38

Operational Performance (Rolling 12 months)

Gross Margin**

SG&A %

R&D %

Net Debt / EBITDA**

Op Margin

70%

35%

70%

30%

ROE

ROIC
35%

0.0
0.0

30%

0.0

25%

69%

25%

0.0

69%

20%

0.0

20%

68%

15%

0.0

15%

68%

10%

0.0
10%

0.0
67%

5%

67%

0%

2010

$ millions

2011

2012

5%

0.0

0%

2012

2013

2014

TTM

Income Statement
Revenue

CAGR/average
5 year

10 year

61,897
18,890
15,590
12,266
4.45
13,577
1.93

61,587
20,234
16,527
13,334
4.87
13,334
2.11

65,030
15,999
15,584
9,672
3.55
10,365
2.25

67,224
17,909
15,869
10,514
3.78
10,514
2.40

71,312
19,983
18,377
13,831
4.90
13,831
2.59

74,331
24,924
20,959
16,323
5.86
16,323
2.76

73,590
24,958
21,111
15,916
5.74
15,916
2.80

4%
6%
6%
6%
6%
4%
7%

5%
5%
5%
7%
7%
7%
10%

4,884
50,588
19,403
7.04

10,885
56,579
24,569
8.97

12,634
57,080
22,804
8.37

4,924
64,826
13,650
4.91

11,026
74,053
23,308
8.26

14,329
69,752
20,698
7.44

12,336
67,878
19,508
7.03

24%
7%
1%
1%

4%
8%
0%
1%

2,774
16,571
(2,365)
(2,470)

2,939
16,385
(2,384)
(1,269)

3,158
14,298
(2,893)
(2,797)

3,666
15,396
(2,934)
(4,486)

4,104
17,414
(3,595)
(835)

3,895
18,471
(3,714)
(2,129)

3,777
17,420
(3,627)
-

7%
2%
9%
-3%

6%
5%
-3%
14%

14,206
2,754
57
102

14,001
2,738
58
104

11,405
2,724
59
113

12,462
2,778
61
126

13,819
2,821
60
129

14,757
2,783
54
131

13,793
2,773
57
131

1%
0%
59
121

5%
-1%
57
113

Gross Margin

70.2%

69.5%

68.7%

67.8%

68.7%

69.4%

69.3%

68.8%

70.0%

Operating Margin

25.2%

26.8%

24.0%

23.6%

25.8%

28.2%

28.7%

25.7%

25.1%

Adjusted Net Profit Margin

21.9%

21.7%

15.9%

15.6%

19.4%

22.0%

21.6%

18.9%

19.7%

ROIC

27.5%

29.8%

22.6%

18.1%

22.5%

30.1%

29.3%

24.6%

27.2%

1.6

1.4

EBITDA
Operating Profit
Net profit (continuing)
EPS (continuing)
Adjusted net income
Dividend per share

Balance Sheet
Net cash* / (debt)
Shareholders equity
Tangible book value
TBV per share

Cash Flow
Depreciation & amortization
Net cash from operations
Net Cap Ex
Net Disposals (acquisitions)

Other Information
Free cash flow
Shares outstanding (mil)
Accts Receivable days
Inventory days

Ratios

Quick Ratio

1.3
Report updated on:

23-May-15

1.6

1.9

1.3

Share price at report date:

1.6
$102.27

1.8

1.8

Market Cap: $283,599m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments. **Plotted against Left hand axis
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.

Johnson & Johnson

www.InvestingSidekick.com

JNJ

Value Report

EV/OP trading range

Conservative model value

Aggressive model value

Current EV/OP (TTM)

Current EV/OP 12.8

(Enterprise Value / Operating Profit)

Return on Invested Capital

Free Cash ROIC

17.9

24.6%
25.7%

(5 year average)

Free Cash Flow Operating Profit

78%
15 years
79%
10 years
76%
5 years

15.9

13.9
11.9

% spending of FCF on
9.9

Net Acquisitions/(divestitures)

7.9

Share buybacks / (issues)

28%
45%
29%
2%
(6%)

Dividends
Decrease/(increase) of net debt

5.9

Other spending/(asset sales)

(cumulative last 10 years)

P/B trading range

P/B = 1

Book value p.s. 24.48

Current P/B

Tangible Book (TBV) p.s.

Net Net Curr. Assets p.s.
Net cash* / (debt) p.s.

6.9

7.03
(0.91)
4.45

5.9

Average annual change in

Book Value p.s.
TBV p.s.
10.5%
11.5%
15 years
15 years
9.1%
8.4%
10 years
10 years
6.6%
7.5%
5 years
5 years

4.9
3.9

2.9

Compounded annual growth in

Book Value p.s.
TBV p.s.
9.8%
4.2%
15 years
15 years
7.8%
10 years
10 years (1.7%)
4.9%
5 years
5 years (4.6%)

0.9

Operating Income

Free Cash Flow

Tangible Book Value per share

Book Value per share

20
15,000
15
10,000
10
5,000

160.0
140.0

200%

Quick Ratio

25

20,000

Inventory days

250%

30

Book Value per share ($)

Operating Profit / FCF ($mil)

25,000

Quick Ratio (Acid test)

Accounts receivable days

120.0
100.0

150%

80.0
100%

60.0
40.0

50%

20.0
0%

0.0

Inventory/Accounts receivable days

1.9

(Seasonally adjusted data)

Report updated on: 23-May-15

Share price at report date:

$102.27

Market Cap: $283,599m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments.
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.