Stock Analysis on Net
Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Johnson & Johnson, FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net earnings 14,066 35,153 17,941 20,878 14,714
Net noncash charges 8,363 (14,869) 7,264 6,770 6,132
Changes in assets and liabilities, net of effects from acquisitions and divestitures 1,837 2,507 (4,011) (4,238) 2,690
Net cash flows from operating activities 24,266 22,791 21,194 23,410 23,536
Additions to property, plant and equipment (4,424) (4,543) (4,009) (3,652) (3,347)
Proceeds from short-term debt 15,277 13,743 16,134 1,997 3,391
Repayment of short-term debt (9,463) (22,973) (6,550) (1,190) (2,663)
Proceeds from long-term debt, net of issuance costs 6,660 — 2 5 7,431
Repayment of long-term debt (1,453) (1,551) (2,134) (1,802) (1,064)
Settlement of convertible debt acquired from Shockwave (970) — — — —
Proceeds of short and long-term debt, net of issuance cost, related to the debt that transferred to Kenvue at separation — 8,047 — — —
Free cash flow to equity (FCFE) 29,893 15,514 24,637 18,768 27,284

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Johnson & Johnson equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Johnson & Johnson FCFE decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to FCFE Ratio, Current

Johnson & Johnson, current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 2,407,616,693
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 29,893
FCFE per share 12.42
Current share price (P) 159.68
Valuation Ratio
P/FCFE 12.86
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 14.14
Amgen Inc. 26.09
Bristol-Myers Squibb Co. 8.63
Danaher Corp. 40.83
Eli Lilly & Co. 65.39
Gilead Sciences Inc. 19.18
Merck & Co. Inc. 16.64
Pfizer Inc. 3.60
Regeneron Pharmaceuticals Inc. 20.65
Thermo Fisher Scientific Inc. 41.23
Vertex Pharmaceuticals Inc. 37.58
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.27
P/FCFE, Industry
Health Care 17.35

Based on: 10-K (reporting date: 2024-12-29).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Johnson & Johnson, historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 2,407,616,693 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 29,893 15,514 24,637 18,768 27,284
FCFE per share3 12.42 6.44 9.46 7.14 10.38
Share price1, 4 157.25 156.55 158.24 166.19 161.87
Valuation Ratio
P/FCFE5 12.67 24.31 16.73 23.28 15.60
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 13.57 17.37 22.66 18.76 13.16
Amgen Inc. 25.50 4.71 8.32 13.52 11.06
Bristol-Myers Squibb Co. — 7.52 22.85 16.17 7.80
Danaher Corp. 40.83 53.08 32.04 20.75 44.62
Eli Lilly & Co. 64.93 75.06 60.51 35.17 36.62
Gilead Sciences Inc. — 12.81 15.22 12.70 5.98
Merck & Co. Inc. — 24.48 22.40 18.72 17.85
Pfizer Inc. — 3.82 10.56 8.88 —
Regeneron Pharmaceuticals Inc. 21.27 26.52 19.29 10.35 13.30
Thermo Fisher Scientific Inc. 41.23 31.16 27.98 13.44 18.58
Vertex Pharmaceuticals Inc. — 33.45 19.91 26.08 18.46
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences — 16.91 19.28 16.49 17.09
P/FCFE, Industry
Health Care — 16.85 18.12 17.81 17.23

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 29,893,000,000 ÷ 2,407,616,693 = 12.42

4 Closing price as at the filing date of Johnson & Johnson Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 157.25 ÷ 12.42 = 12.67

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Johnson & Johnson P/FCFE ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.