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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.69
MJN's Cash to Debt is ranked higher than
63% of the 1426 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.75 vs. MJN: 0.69 )
MJN' s 10-Year Cash to Debt Range
Min: 0.35   Max: No Debt
Current: 0.69

Equity to Asset 0.08
MJN's Equity to Asset is ranked lower than
63% of the 1415 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.53 vs. MJN: 0.08 )
MJN' s 10-Year Equity to Asset Range
Min: -1.03   Max: 0.49
Current: 0.08

-1.03
0.49
Interest Coverage 16.93
MJN's Interest Coverage is ranked higher than
65% of the 907 Companies
in the Global Packaged Foods industry.

( Industry Median: 16.52 vs. MJN: 16.93 )
MJN' s 10-Year Interest Coverage Range
Min: 7.7   Max: 9999.99
Current: 16.93

7.7
9999.99
F-Score: 6
Z-Score: 5.82
M-Score: -2.58
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 23.86
MJN's Operating margin (%) is ranked higher than
96% of the 1415 Companies
in the Global Packaged Foods industry.

( Industry Median: 5.72 vs. MJN: 23.86 )
MJN' s 10-Year Operating margin (%) Range
Min: 21.05   Max: 42.55
Current: 23.86

21.05
42.55
Net-margin (%) 15.46
MJN's Net-margin (%) is ranked higher than
94% of the 1416 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.99 vs. MJN: 15.46 )
MJN' s 10-Year Net-margin (%) Range
Min: 13.67   Max: 26
Current: 15.46

13.67
26
ROE (%) 222.58
MJN's ROE (%) is ranked higher than
100% of the 1399 Companies
in the Global Packaged Foods industry.

( Industry Median: 7.24 vs. MJN: 222.58 )
MJN' s 10-Year ROE (%) Range
Min: 66.98   Max: 3232.62
Current: 222.58

66.98
3232.62
ROA (%) 18.70
MJN's ROA (%) is ranked higher than
98% of the 1412 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.79 vs. MJN: 18.70 )
MJN' s 10-Year ROA (%) Range
Min: 18.38   Max: 47.06
Current: 18.7

18.38
47.06
ROC (Joel Greenblatt) (%) 115.55
MJN's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 1410 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.01 vs. MJN: 115.55 )
MJN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 115.55   Max: 142.14
Current: 115.55

115.55
142.14
Revenue Growth (%) 10.40
MJN's Revenue Growth (%) is ranked higher than
82% of the 1093 Companies
in the Global Packaged Foods industry.

( Industry Median: 5.70 vs. MJN: 10.40 )
MJN' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 10.7
Current: 10.4

0
10.7
EBITDA Growth (%) 11.10
MJN's EBITDA Growth (%) is ranked higher than
85% of the 974 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.90 vs. MJN: 11.10 )
MJN' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 11.1
Current: 11.1

0
11.1
EPS Growth (%) 13.10
MJN's EPS Growth (%) is ranked higher than
82% of the 890 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.80 vs. MJN: 13.10 )
MJN' s 10-Year EPS Growth (%) Range
Min: 0   Max: 14.2
Current: 13.1

0
14.2
» MJN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

MJN Guru Trades in Q1 2013

Paul Tudor Jones 100,000 sh (New)
Eric Mindich 670,000 sh (New)
Steve Mandel 7,026,776 sh (+87.45%)
Jim Simons 1,907,700 sh (+11.88%)
MS Global Franchise Fund 158,352 sh (+10.78%)
John Paulson 1,000,000 sh (unchged)
Robert Karr 1,766,900 sh (unchged)
Jeremy Grantham Sold Out
George Soros 148,920 sh (-2.67%)
Manning & Napier Advisors, Inc 758,460 sh (-9.35%)
Mario Gabelli 237,902 sh (-17.38%)
Steven Cohen 493,610 sh (-38.58%)
» More
Q2 2013

MJN Guru Trades in Q2 2013

Jeremy Grantham 219,963 sh (New)
Louis Moore Bacon 190,000 sh (New)
Ray Dalio 5,700 sh (New)
Paul Tudor Jones 181,000 sh (+81%)
Eric Mindich 1,106,000 sh (+65.07%)
Steve Mandel 7,407,735 sh (+5.42%)
George Soros 148,920 sh (unchged)
Robert Karr 1,766,900 sh (unchged)
Stanley Druckenmiller Sold Out
Mario Gabelli 235,532 sh (-1%)
John Paulson 957,900 sh (-4.21%)
Manning & Napier Advisors, Inc 625,970 sh (-17.47%)
MS Global Franchise Fund 112,655 sh (-28.86%)
Steven Cohen 342,084 sh (-30.7%)
Jim Simons 1,315,000 sh (-31.07%)
» More
Q3 2013

MJN Guru Trades in Q3 2013

Louis Moore Bacon 290,000 sh (+52.63%)
Manning & Napier Advisors, Inc 674,310 sh (+7.72%)
Eric Mindich 1,106,000 sh (unchged)
George Soros 148,920 sh (unchged)
John Paulson Sold Out
Paul Tudor Jones Sold Out
Ray Dalio Sold Out
Steve Mandel 6,629,859 sh (-10.5%)
Jim Simons 1,037,700 sh (-21.09%)
Robert Karr 1,371,900 sh (-22.36%)
Mario Gabelli 178,702 sh (-24.13%)
MS Global Franchise Fund 79,331 sh (-29.58%)
Steven Cohen 230,365 sh (-32.66%)
Jeremy Grantham 38,853 sh (-82.34%)
» More
Q4 2013

MJN Guru Trades in Q4 2013

Joel Greenblatt 9,546 sh (New)
Paul Tudor Jones 54,200 sh (New)
Bill Frels 4,922 sh (New)
Ray Dalio 17,200 sh (New)
Jeremy Grantham 79,210 sh (+103.87%)
Robert Karr 1,751,900 sh (+27.7%)
Eric Mindich 1,106,000 sh (unchged)
Louis Moore Bacon Sold Out
George Soros Sold Out
Mario Gabelli 176,502 sh (-1.23%)
Manning & Napier Advisors, Inc 641,455 sh (-4.87%)
MS Global Franchise Fund 75,419 sh (-4.93%)
Steven Cohen 184,747 sh (-19.8%)
Jim Simons 622,700 sh (-39.99%)
Steve Mandel 3,560,693 sh (-46.29%)
» More
» Details

Insider Trades

Latest Guru Trades with MJN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Steve Mandel 2013-12-31 Reduce -46.29%1.02%$74.04 - $85.58 $ 83.743%3560693
George Soros 2013-12-31 Sold Out 0.12%$74.04 - $85.58 $ 83.743%0
Joel Greenblatt 2013-12-31 New Buy0.02%$74.04 - $85.58 $ 83.743%9546
Ray Dalio 2013-12-31 New Buy0.01%$74.04 - $85.58 $ 83.743%17200
John Paulson 2013-09-30 Sold Out 0.54%$68.85 - $79.05 $ 83.7412%0
Steve Mandel 2013-09-30 Reduce -10.5%0.3%$68.85 - $79.05 $ 83.7412%6629859
Mario Gabelli 2013-09-30 Reduce -24.13%0.03%$68.85 - $79.05 $ 83.7412%178702
Ray Dalio 2013-09-30 Sold Out $68.85 - $79.05 $ 83.7412%0
Steve Mandel 2013-06-30 Add 5.42%0.15%$75.5 - $86.19 $ 83.744%7407735
Ray Dalio 2013-06-30 New Buy$75.5 - $86.19 $ 83.744%5700
Steve Mandel 2013-03-31 Add 87.45%1.31%$65.89 - $80.4 $ 83.7414%7026776
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 26.30
MJN's P/E(ttm) is ranked higher than
54% of the 1168 Companies
in the Global Packaged Foods industry.

( Industry Median: 19.40 vs. MJN: 26.30 )
MJN' s 10-Year P/E(ttm) Range
Min: 12.5   Max: 33.58
Current: 26.3

12.5
33.58
P/B 58.20
MJN's P/B is ranked lower than
76% of the 1342 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.66 vs. MJN: 58.20 )
MJN' s 10-Year P/B Range
Min: 52.74   Max: 877.33
Current: 58.2

52.74
877.33
P/S 4.05
MJN's P/S is ranked lower than
81% of the 1446 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.90 vs. MJN: 4.05 )
MJN' s 10-Year P/S Range
Min: 1.59   Max: 4.71
Current: 4.05

1.59
4.71
PFCF 30.10
MJN's PFCF is ranked lower than
54% of the 824 Companies
in the Global Packaged Foods industry.

( Industry Median: 19.20 vs. MJN: 30.10 )
MJN' s 10-Year PFCF Range
Min: 12.28   Max: 50.57
Current: 30.1

12.28
50.57
EV-to-EBIT 17.90
MJN's EV-to-EBIT is ranked higher than
55% of the 1237 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.33 vs. MJN: 17.90 )
MJN' s 10-Year EV-to-EBIT Range
Min: 9.5   Max: 23
Current: 17.9

9.5
23
PEG 3.20
MJN's PEG is ranked higher than
55% of the 686 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.28 vs. MJN: 3.20 )
MJN' s 10-Year PEG Range
Min: 1.87   Max: 7.15
Current: 3.2

1.87
7.15
Shiller P/E 31.70
MJN's Shiller P/E is ranked higher than
50% of the 681 Companies
in the Global Packaged Foods industry.

( Industry Median: 20.60 vs. MJN: 31.70 )
MJN' s 10-Year Shiller P/E Range
Min: 26.36   Max: 32.98
Current: 31.7

26.36
32.98

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.67
MJN's Dividend Yield is ranked lower than
54% of the 1038 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.00 vs. MJN: 1.67 )
MJN' s 10-Year Dividend Yield Range
Min: 0.5   Max: 1.87
Current: 1.67

0.5
1.87
Dividend Payout 0.43
MJN's Dividend Payout is ranked higher than
57% of the 858 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.37 vs. MJN: 0.43 )
MJN' s 10-Year Dividend Payout Range
Min: 0.3   Max: 0.43
Current: 0.43

0.3
0.43
Dividend growth (3y) 14.80
MJN's Dividend growth (3y) is ranked higher than
89% of the 564 Companies
in the Global Packaged Foods industry.

( Industry Median: 4.90 vs. MJN: 14.80 )
MJN' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 26
Current: 14.8

0
26
Yield on cost (5-Year) 4.45
MJN's Yield on cost (5-Year) is ranked higher than
83% of the 1070 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.17 vs. MJN: 4.45 )
MJN' s 10-Year Yield on cost (5-Year) Range
Min: 1.31   Max: 4.89
Current: 4.45

1.31
4.89
Share Buyback Rate 0.30
MJN's Share Buyback Rate is ranked higher than
86% of the 794 Companies
in the Global Packaged Foods industry.

( Industry Median: -0.80 vs. MJN: 0.30 )
MJN' s 10-Year Share Buyback Rate Range
Min: 0   Max: -6.4
Current: 0.3

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 3.30
MJN's Price/DCF (Projected) is ranked lower than
63% of the 644 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.50 vs. MJN: 3.30 )
MJN' s 10-Year Price/DCF (Projected) Range
Min: 2.67   Max: 3.27
Current: 3.3

2.67
3.27
Price/Median PS Value 1.00
MJN's Price/Median PS Value is ranked higher than
62% of the 1305 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.10 vs. MJN: 1.00 )
MJN' s 10-Year Price/Median PS Value Range
Min: 0.8   Max: 1.05
Current: 1

0.8
1.05
Price/Peter Lynch Fair Value 4.70
MJN's Price/Peter Lynch Fair Value is ranked lower than
66% of the 358 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.50 vs. MJN: 4.70 )
MJN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.89   Max: 4.76
Current: 4.7

1.89
4.76
Earnings Yield (Greenblatt) 5.60
MJN's Earnings Yield (Greenblatt) is ranked higher than
61% of the 1310 Companies
in the Global Packaged Foods industry.

( Industry Median: 6.40 vs. MJN: 5.60 )
MJN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.3   Max: 10.5
Current: 5.6

4.3
10.5
Forward Rate of Return (Yacktman) 7.70
MJN's Forward Rate of Return (Yacktman) is ranked higher than
77% of the 884 Companies
in the Global Packaged Foods industry.

( Industry Median: 7.11 vs. MJN: 7.70 )
MJN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.9   Max: 14.3
Current: 7.7

1.9
14.3

Business Description

Industry: Consumer Packaged Goods » Packaged Foods
Compare: » details
Traded in other countries:0MJA.Germany
Mead Johnson Nutrition Company, a Delaware corporation, was founded in 1905. The Company manufactures, distributes and sells infant formulas, children's nutrition and other nutritional products. Mead Johnson Nutrition Company has a broad product portfolio, which extends across routine and specialty infant formulas, children's milks and milk modifiers, pediatric vitamins, dietary supplements for pregnant and breastfeeding mothers, and products for metabolic disorders. The Company's comprehensive product portfolio addresses a broad range of nutritional needs for infants, children and expectant and nursing mothers. The Company has over 100 years of innovation experience during which it has developed or improved many breakthrough or industry-defining products across each of its product categories. The Company's singular focus on pediatric nutrition and its implementation of a business model that integrates nutritional science with health care and consumer marketing expertise differentiate it from many of its competitors. The Company markets its portfolio of more than 70 products to mothers, health care professionals and retailers in more than 50 countries in Asia, North America, Latin America and Europe. Its two reportable segments are Asia/Latin America and North America/Europe, which comprised 70% and 30%, respectively, of its net sales for the year ended December 31, 2012. The Company designs routine infant formula as a breast milk substitute for healthy, full-term infants without special nutritional needs both for use as the infant's sole source of nutrition and as a supplement to breastfeeding. It endeavors to develop routine infant formula closer to breast milk. It also provides products within its routine formula line for healthy full-term infants who experience common feeding problems with symptoms such as mild spit-up, fussiness or gas. The Company also produces a range of other products, including pre-natal and post-natal nutritional supplements for expectant and nursing mothers, including Expecta LIPIL and EnfaMama A+. Its products for expectant or nursing mothers provide the developing fetus or breastfed infant with vitamin supplements and/or an increased supply of DHA for brain, visual and nervous system development. These products also supplement the mother's diet by providing either DHA or ARA with increased proteins, as well as 24 vitamins and minerals. The Company competes in two primary categories, infant formula and children's nutrition. The Company is subject to numerous governmental regulations, and it can be costly to comply with these regulations.

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