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Johnson & Johnson Earnings Yield (Joel Greenblatt) %

: 4.61% (As of Jun. 2021)
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Johnson & Johnson's Enterprise Value for the quarter that ended in Jun. 2021 was $441,771 Mil. Johnson & Johnson's EBIT for the trailing twelve months (TTM) ended in Jun. 2021 was $20,373 Mil. Johnson & Johnson's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2021 was 4.61%.

The historical rank and industry rank for Johnson & Johnson's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

NYSE:JNJ' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.67   Med: 6.2   Max: 11.24
Current: 4.64

3.67
11.24

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Johnson & Johnson was 11.24%. The lowest was 3.67%. And the median was 6.20%.

NYSE:JNJ's Earnings Yield (Joel Greenblatt) % is ranked higher than
86% of the 146 Companies
in the Drug Manufacturers industry.

( Industry Median: -3.65 vs. NYSE:JNJ: 4.64 )

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Johnson & Johnson's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2021 was 6.78%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Johnson & Johnson Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Johnson & Johnson's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Johnson & Johnson Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.91 4.76 5.36 4.50 3.93

Johnson & Johnson Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.33 4.83 3.93 4.00 4.61

Competitive Comparison

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Johnson & Johnson Earnings Yield (Joel Greenblatt) % Distribution

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Earnings Yield (Joel Greenblatt) % falls into.



Johnson & Johnson Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Johnson & Johnsons Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=16698/424385.4238
=3.93 %

Johnson & Johnson's EBIT for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $20,373 Mil.



Johnson & Johnson  (NYSE:JNJ) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Johnson & Johnson Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Johnson & Johnson Business Description

Johnson & Johnson logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933
Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. Geographically, just over half of total sales are generated in the United States.
Executives
Weinberger Mark A director METLIFE, INC. 200 PARK AVENUE NEW YORK NY 10166
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Washington A. Eugene director ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wengel Kathryn E officer: EVP, Chief GSC Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Mcevoy Ashley officer: EVP, WW Chair, Medical Devices JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Perez William D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PEREZ WILLIAM D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mongon Thibaut officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Stoffels Paulus officer: Vice Chair, Exec Committee ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Ullmann Michael H officer: Exec VP, General Counsel JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Fasolo Peter officer: Exec VP, Chief HR Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wolk Joseph J officer: Exec VP, CFO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Taubert Jennifer L officer: EVP, WW Chair, Pharmaceuticals JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Sneed Michael E officer: EVP, Global Corp Aff & COO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Decker Robert J officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Gorsky Alex director, officer: Chairman, CEO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933

Johnson & Johnson Headlines

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