JNJ - Embedded Expectations Analysis - 2019 06 28
Johnson & Johnson (JNJ:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 17.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is excited about their debt structure, and is confident in their ability to sustain earnings growth, new anti-depression treatments, and long-term investment.Specifically, management generated an excitement marker when discussing their lower projected interest expense. Additionally, management is confident in their ability to continue their 35-year streak of operational earnings growth, and in the FDA's breakthrough designation for their depression treatment. Moreover, they are confident about their commitment to provide affordable and quality healthcare for humanity, and in their focus on long-term business investment.
Johnson & Johnson is a holding company engaged in the research and development, manufacture and sale of a range of products in the health care field. The company has three business segments: Consumer, which includes a range of products focused on personal healthcare used in the beauty, over-the-counter pharmaceutical, baby care, oral care, women's health and wound care markets; Pharmaceutical, which is focused on six therapeutic areas: immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism and pulmonary hypertension; and Medical Devices, which includes products used in the orthopaedic, surgery, interventional solutions, and eye health fields.
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