In typical fashion Johnson & Johnson announced that they have once again beat analyst consensus earnings estimates. Their quarterly earnings came in at $1.26/share, 6 cents above analyst estimates of $1.20/share. However, their two major businesses, pharmaceuticals and medical devices, would have experienced declines had it not been for the weak American dollar.
The recent increase in earnings due to currency is viewed as a negative by many analysts however, as an investor it helps to reaffirm one aspect of my investing strategy. One of the criteria that I used to select the U.S names in my portfolio is their international exposure. Over a year ago when I first initiated a position in JNJ I stated that one of the reason that I bought was that 44% of their sales were from outside of North America which would act as a built-in currency hedge. It works like this: JNJ reports their earnings in U.S dollars so the 44% of their revenue that was generated outside of the U.S. has to be converted back to American dollars for accounting purposes. This of course would inflate their international earnings as the U.S dollar falls and conversely shrink them as the U.S dollar rises.
Showing posts with label JNJ. Show all posts
Showing posts with label JNJ. Show all posts
Wednesday, April 16, 2008
Friday, February 22, 2008
Johnson & Johnson - (JNJ)
“Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.”
Dividend Yield: 2.64%
Dividend Yield 5yr Avg: 1.9 %
ROE levels of above 21% for the past 10 years
Current P/E– 17.3
Projected 2008 P/E –14.3
Projected 2009 P/E – 13.6
4 Star rating from S&P - $74 one year target
Argus rates it a buy with a $75 one year target
Other information:
-44 years of consistent dividend growth.
-3 year average dividend growth rate: 14%
-5 year average dividend growth rate: 15.5%
-5 year average dividend payout ratio: 40%
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-44% of sales outside of North America
Calculated Fair Value:
The fair price I calculated for this stock is $67.
(Disclaimer: I currently own shares of JNJ. However, I am not a financial advisor. Please do your own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice.)
Dividend Yield: 2.64%
Dividend Yield 5yr Avg: 1.9 %
ROE levels of above 21% for the past 10 years
Current P/E– 17.3
Projected 2008 P/E –14.3
Projected 2009 P/E – 13.6
4 Star rating from S&P - $74 one year target
Argus rates it a buy with a $75 one year target
Other information:
-44 years of consistent dividend growth.
-3 year average dividend growth rate: 14%
-5 year average dividend growth rate: 15.5%
-5 year average dividend payout ratio: 40%
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-44% of sales outside of North America
Calculated Fair Value:
The fair price I calculated for this stock is $67.
(Disclaimer: I currently own shares of JNJ. However, I am not a financial advisor. Please do your own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice.)
Wednesday, January 23, 2008
Johnson & Johnson (JNJ) - A Sliver of Good News
Well it’s been a pretty dismal couple of weeks for the markets with many companies (particularly financials) releasing earning reports that surprised even the bearish of analysts. However, despite all the doom and gloom there are a few positive results out there.
Yesterday Johnson & Johnson announced record sales of $16 billion (a 16.6% increase from Q4 2006) and a 10.8% increase in fourth quarter EPS. Excluding special items their fourth quarter EPS was $0.88 beating the analyst consensus of $0.86 a share. Although these aren’t blockbuster results they are exactly what I’d expect from JNJ, consistent and steady. Even more importantly I think it’s important to look at where the growth is coming from:
CONSUMER SEGMENT
U.S Sales: Up 37.6% to $1.63 billion from $1.18 billion
International Sales: Up 57.9% to $2.18 billion from $1.38 billion
Total Growth: Up 48.5%
(The huge increase in this sector is partially a result of the acquisition of Pfizer’s consumer division.)
PHARMACEUTICAL SEGEMENT
U.S Sales: Up 2% from last year's $3.87 billion
International Sales: Up 17.8% to $2.45 billion from $2.08 billion a year ago
Total Growth: Up 7.5%
MEDICAL DEVICES & DIAGNOSTICS SEGMENT
U.S Sales: 6.8% to $2.66 billion from $2.49 billion
International Sales: Up 15.4% to $3.09 billion from $2.68 billion
Total Growth: Up 11.3%
The results are certainly indicative of where the growth is for JNJ (international) and also one of the reasons I originally initiated a position in JNJ.
The company also gave guidance for 2008 and indicated that their EPS would be in the range of $4.39 - $4.44. This represents an increase of 5.8% to 7% not bad considering it looks like we're heading into a recession.
(Disclaimer: I currently have a position in JNJ but am not a financial advisor. Please do your own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
Yesterday Johnson & Johnson announced record sales of $16 billion (a 16.6% increase from Q4 2006) and a 10.8% increase in fourth quarter EPS. Excluding special items their fourth quarter EPS was $0.88 beating the analyst consensus of $0.86 a share. Although these aren’t blockbuster results they are exactly what I’d expect from JNJ, consistent and steady. Even more importantly I think it’s important to look at where the growth is coming from:
CONSUMER SEGMENT
U.S Sales: Up 37.6% to $1.63 billion from $1.18 billion
International Sales: Up 57.9% to $2.18 billion from $1.38 billion
Total Growth: Up 48.5%
(The huge increase in this sector is partially a result of the acquisition of Pfizer’s consumer division.)
PHARMACEUTICAL SEGEMENT
U.S Sales: Up 2% from last year's $3.87 billion
International Sales: Up 17.8% to $2.45 billion from $2.08 billion a year ago
Total Growth: Up 7.5%
MEDICAL DEVICES & DIAGNOSTICS SEGMENT
U.S Sales: 6.8% to $2.66 billion from $2.49 billion
International Sales: Up 15.4% to $3.09 billion from $2.68 billion
Total Growth: Up 11.3%
The results are certainly indicative of where the growth is for JNJ (international) and also one of the reasons I originally initiated a position in JNJ.
The company also gave guidance for 2008 and indicated that their EPS would be in the range of $4.39 - $4.44. This represents an increase of 5.8% to 7% not bad considering it looks like we're heading into a recession.
(Disclaimer: I currently have a position in JNJ but am not a financial advisor. Please do your own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
Tuesday, October 9, 2007
Investing based on Demographics - Johnson & Johnson (JNJ)
“Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.”
Dividend Yield: 2.6%
Dividend Yield 5yr Avg: 1.9 %
ROE levels of above 21% for the past 10 years
Current P/E– 18
Projected 2007 P/E –16
Projected 2008 P/E – 15
4 Star rating from S&P - $74 one year target
Argus rates it a buy with a $76 one year target
Other information:
-44 years of consistent dividend growth.
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-44% of sales outside of North America
THESIS: JNJ sells hundreds of brand name products in the health care space. As the population ages they will increasingly be using more health care products and devices made be JNJ. I am very bullish on the long term prospects of JNJ and currently have close to 6% of my portfolio invested with them. I would continue to accumulate as both JNJ and the American dollar dips.
Dividend Yield: 2.6%
Dividend Yield 5yr Avg: 1.9 %
ROE levels of above 21% for the past 10 years
Current P/E– 18
Projected 2007 P/E –16
Projected 2008 P/E – 15
4 Star rating from S&P - $74 one year target
Argus rates it a buy with a $76 one year target
Other information:
-44 years of consistent dividend growth.
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-44% of sales outside of North America
THESIS: JNJ sells hundreds of brand name products in the health care space. As the population ages they will increasingly be using more health care products and devices made be JNJ. I am very bullish on the long term prospects of JNJ and currently have close to 6% of my portfolio invested with them. I would continue to accumulate as both JNJ and the American dollar dips.
Friday, May 25, 2007
JNJ (again)
With the CDN pushing against 30 year highs I decided to increase my position in JNJ. I’ve posted these reasons before but here they are again:
-44 years of consistent dividend growth.
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-Current yield of 2.50%
-44% of sales outside of North America
-ROE levels of above 21% for the past 10 years
-Current P/E – 16.18
-Projected 2007 P/E – 15.3
-Projected 2008 P/E – 13.44
-4 Star rating from S&P - $74 one year target
-Argus rates it a buy with a $76 one year target
I like their diversified holdings within the healthcare sector particularly their consumer products.
(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
-44 years of consistent dividend growth.
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-Current yield of 2.50%
-44% of sales outside of North America
-ROE levels of above 21% for the past 10 years
-Current P/E – 16.18
-Projected 2007 P/E – 15.3
-Projected 2008 P/E – 13.44
-4 Star rating from S&P - $74 one year target
-Argus rates it a buy with a $76 one year target
I like their diversified holdings within the healthcare sector particularly their consumer products.
(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
Friday, May 11, 2007
Dividend Growing Stocks – III
JNJ
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.65%
- Estimated 2007 P/E of 15.4
- 44% of sales outside of North America
For more information on the company please follow the link to their website.
"Johnson & Johnson, through its operating companies, is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 121,000 men and women in 57 countries and sell products throughout the world."
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.65%
- Estimated 2007 P/E of 15.4
- 44% of sales outside of North America
For more information on the company please follow the link to their website.
Thursday, March 29, 2007
JNJ
I purchased JNJ yesterday for a long term hold and here are my reasons why:
- 44 years of consistent dividend growth.
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.50%
- 44% of sales outside of North America (built-in currency hedge)
- ROE levels of above 21% for the past 10 years
- Current P/E – 16.18
- Projected 2007 P/E – 15.3
- Projected 2008 P/E – 13.44
- 4 Star rating from S&P - $74 one year target
- Argus rates it a buy with a $76 one year target
- I like their diversified holdings within the healthcare sector particularly their consumer products.
(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
- 44 years of consistent dividend growth.
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.50%
- 44% of sales outside of North America (built-in currency hedge)
- ROE levels of above 21% for the past 10 years
- Current P/E – 16.18
- Projected 2007 P/E – 15.3
- Projected 2008 P/E – 13.44
- 4 Star rating from S&P - $74 one year target
- Argus rates it a buy with a $76 one year target
- I like their diversified holdings within the healthcare sector particularly their consumer products.
(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)
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