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 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Net earnings 35,153 17,941 20,878 14,714 15,119
Net noncash charges (14,869) 7,264 6,770 6,132 4,432
Changes in assets and liabilities, net of effects from acquisitions and divestitures 2,507 (4,011) (4,238) 2,690 3,865
Net cash flows from operating activities 22,791 21,194 23,410 23,536 23,416
Additions to property, plant and equipment (4,543) (4,009) (3,652) (3,347) (3,498)
Proceeds from short-term debt 13,743 16,134 1,997 3,391 39
Repayment of short-term debt (22,973) (6,550) (1,190) (2,663) (100)
Proceeds from long-term debt, net of issuance costs — 2 5 7,431 3
Repayment of long-term debt (1,551) (2,134) (1,802) (1,064) (2,823)
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) 15,514 24,637 18,768 27,284 17,037

Based on: 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), 10-K (reporting date: 2019-12-29).

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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 2,407,622,972
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 15,514
FCFE per share 6.44
Current share price (P) 147.03
Valuation Ratio
P/FCFE 22.82
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 16.96
Amgen Inc. 4.43
Bristol-Myers Squibb Co. 8.71
Danaher Corp. 49.29
Eli Lilly & Co. 72.96
Gilead Sciences Inc. 16.01
Merck & Co. Inc. 18.59
Pfizer Inc. 3.66
Regeneron Pharmaceuticals Inc. 19.33
Thermo Fisher Scientific Inc. 31.21
Vertex Pharmaceuticals Inc. 33.01
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.03
P/FCFE, Industry
Health Care 16.26

Based on: 10-K (reporting date: 2023-12-31).

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 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
No. shares of common stock outstanding1 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824 2,634,721,257
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 15,514 24,637 18,768 27,284 17,037
FCFE per share3 6.44 9.46 7.14 10.38 6.47
Share price1, 4 156.55 158.24 166.19 161.87 149.14
Valuation Ratio
P/FCFE5 24.31 16.73 23.28 15.60 23.06
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 17.37 22.66 18.76 13.16 3.64
Amgen Inc. 4.71 8.32 13.52 11.06 33.32
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Gilead Sciences Inc. 12.81 15.22 12.70 5.98 15.91
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
Vertex Pharmaceuticals Inc. 33.45 19.91 26.08 18.46 42.50
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.91 19.28 16.49 17.09 11.66
P/FCFE, Industry
Health Care 16.85 18.12 17.81 17.23 13.56

Based on: 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), 10-K (reporting date: 2019-12-29).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 15,514,000,000 ÷ 2,408,767,228 = 6.44

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 156.55 ÷ 6.44 = 24.31

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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.