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Also traded in: Germany

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 : 5/10

Interest Coverage 6.84
NYSE:MJN's Interest Coverage is ranked lower than
99.99% of the 1333 Companies
in the Global Packaged Foods industry.

( Industry Median: 14.17 vs. NYSE:MJN: 6.84 )
Ranked among companies with meaningful Interest Coverage only.
NYSE:MJN' s Interest Coverage Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0
Current: 6.84
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 : 3/10

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» NYSE:MJN's 30-Y Financials


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q3 2016

MJN Guru Trades in Q3 2016

Joel Greenblatt 77,167 sh (New)
John Paulson 78,500 sh (New)
John Hussman 1,000 sh (New)
Ray Dalio 59,126 sh (+677.97%)
Jim Simons 607,900 sh (+117.26%)
Paul Tudor Jones 11,406 sh (+44.64%)
Tom Gayner 30,300 sh (unchged)
Stanley Druckenmiller Sold Out
Mario Gabelli 87,817 sh (-0.11%)
Manning & Napier Advisors, Inc 77,550 sh (-0.35%)
George Soros 165,200 sh (-8.22%)
David Rolfe 1,714,019 sh (-33.66%)
Pioneer Investments 315,703 sh (-46.06%)
» More
Q4 2016

MJN Guru Trades in Q4 2016

Ray Dalio 154,120 sh (+160.66%)
Manning & Napier Advisors, Inc 200,150 sh (+158.09%)
Jim Simons 1,025,700 sh (+68.73%)
Paul Tudor Jones 15,645 sh (+37.16%)
Tom Gayner 32,300 sh (+6.60%)
John Hussman 1,000 sh (unchged)
Mario Gabelli 87,717 sh (-0.11%)
Pioneer Investments 303,401 sh (-3.90%)
George Soros 155,500 sh (-5.87%)
Joel Greenblatt 67,513 sh (-12.51%)
David Rolfe 1,451,913 sh (-15.29%)
John Paulson 30,800 sh (-60.76%)
» More
Q1 2017

MJN Guru Trades in Q1 2017

Leucadia National 50,000 sh (New)
Paul Singer 1,054,444 sh (New)
Jeremy Grantham 827,200 sh (New)
John Paulson 1,184,200 sh (+3744.81%)
Paul Tudor Jones 389,036 sh (+2386.65%)
Mario Gabelli 127,192 sh (+45.00%)
George Soros 205,750 sh (+32.32%)
Steven Cohen 290,800 sh (unchged)
Eric Mindich 500,000 sh (unchged)
Ray Dalio Sold Out
John Hussman Sold Out
Pioneer Investments Sold Out
Joel Greenblatt Sold Out
Tom Gayner Sold Out
David Rolfe Sold Out
Manning & Napier Advisors, Inc 64,800 sh (-67.62%)
Jim Simons 84,000 sh (-91.81%)
» More
Q2 2017

MJN Guru Trades in Q2 2017

Mario Gabelli Sold Out
Manning & Napier Advisors, Inc Sold Out
George Soros Sold Out
John Paulson Sold Out
Paul Singer Sold Out
Paul Tudor Jones Sold Out
Jeremy Grantham Sold Out
Leucadia National Sold Out
Jim Simons Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with MJN

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Business Description

Industry: Consumer Packaged Goods » Packaged Foods    NAICS: 311999    SIC: 2023
Compare:SZSE:300498, SAU:2280, HKSE:00288, NYSE:CAG, NYSE:MKC.V, NYSE:HRL, TPE:1216, HKSE:02319, NYSE:SJM, NSE:NESTLEIND, SZSE:000895, TSX:SAP, NYSE:CPB, NYSE:K, TSE:2269, STC:VNM, HKSE:00151, MEX:BIMBO A, HKSE:00322, TSE:2802 » details
Traded in other countries:0MJA.Germany,
Headquarter Location:USA
Mead Johnson Nutrition Co manufactures, distributes and sells infant formulas, children's nutrition and other pediatric nutritional products. Its product portfolio addresses nutritional needs for infants, children and expectant and nursing mothers.

Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.

Guru Investment Theses on Mead Johnson Nutrition Co

David Rolfe Comments on Mead Johnson - Apr 14, 2017

During the quarter, we liquidated our position in Mead Johnson (NYSE:MJN) after we determined the growth and competitive positioning of the business would be challenged for the next several years. In addition, the Company reached an agreement to be acquired by the European CPG firm, Reckitt Benckiser. A substantial portion of Mead Johnson’s growth in revenues and profits is derived from China, where a confluence of factors over the past few years have blunted the Company’s competitive advantage. First, the barriers to entry for Mead’s competition in China have fallen. While Mead has a well-established position in China’s traditional distribution channels, the Country’s emerging e-commerce channel has facilitated a booming “gray” market with Europe, where the Company has very little presence. Mead’s competitors in Europe have a much stronger value proposition than Chinese-based competitors. Second, China has become much less hospitable from a competitive standpoint. The rules and regulations that the NDRC (National Development and Reform Commission) have erected to prevent gray market expansion were, ostensibly, put in place to protect businesses that directly invested in the country’s local manufacturing and distribution—particularly to help raise quality and safety standards. While Mead has invested heavily in China, we think the returns from these investments will be much less attractive, now that the NDRC has failed to protect (and in some cases, actively undermined) those investments. Given our lack of conviction in the ability of the Company to post attractive, long-term, double-digit growth relative to a mediocre valuation, we decided it prudent to find a more attractive opportunity.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners first-quarter 2017 shareholder letter.

Check out David Rolfe latest stock trades



Dividend & Buy Back

Dividend Yield % 1.84
MJN's Dividend Yield % is ranked lower than
56% of the 1796 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.06 vs. MJN: 1.84 )
Ranked among companies with meaningful Dividend Yield % only.
MJN' s Dividend Yield % Range Over the Past 10 Years
Min: 0  Med: 0 Max: 1.84
Current: 1.84
Dividend Payout Ratio 0.52
MJN's Dividend Payout Ratio is ranked higher than
64% of the 1058 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.34 vs. MJN: 0.52 )
Ranked among companies with meaningful Dividend Payout Ratio only.
MJN' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0.52
Current: 0.52
Forward Dividend Yield % 1.83
MJN's Forward Dividend Yield % is ranked lower than
61% of the 1715 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.31 vs. MJN: 1.83 )
Ranked among companies with meaningful Forward Dividend Yield % only.
5-Year Yield-on-Cost % 1.84
MJN's 5-Year Yield-on-Cost % is ranked lower than
63% of the 1779 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.43 vs. MJN: 1.84 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
MJN' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0  Med: 0 Max: 1.84
Current: 1.84

Valuation & Return


More Statistics

Revenue (TTM) (Mil) $3,664.10
EPS (TTM) $ 3.18
52-Week Range $69.25 - 94.40
Shares Outstanding (Mil)183.64

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 3,642 3,753 3,782
EBIT (Mil $) 843 894 921
EBITDA (Mil $) 945 998 1,030
EPS ($) 3.15 3.34 3.49
EPS without NRI ($) 3.15 3.34 3.49
EPS Growth Rate
(Future 3Y To 5Y Estimate)
Dividends per Share ($) 1.69 1.77 1.88

Piotroski F-Score Details

Piotroski F-Score: ----
Positive ROAN
Positive CFROAN
Higher ROA yoyN
Lower Leverage yoyN
Higher Current Ratio yoyN
Less Shares Outstanding yoyN
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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