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Johnson & Johnson Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Johnson & Johnson has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Johnson & Johnson's Piotroski F-Score or its related term are showing as below:

NYSE:JNJ' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 8
Current: 7

1
8

During the past 13 years, the highest Piotroski F-Score of Johnson & Johnson was 8. The lowest was 1. And the median was 6.


Johnson & Johnson Piotroski F-Score Historical Data

The historical data trend for Johnson & Johnson's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 5.00 8.00 7.00 4.00

Johnson & Johnson Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score 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 5.00 6.00 4.00 4.00 7.00

Competitive Comparison

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 3554 + 1738 + 6197 + 6278 = $17,767 Mil.
Cash Flow from Operations was 8383 + 8343 + 4074 + 5314 = $26,114 Mil.
Revenue was 21082 + 22475 + 22321 + 23312 = $89,190 Mil.
Gross Profit was 14110 + 14661 + 15258 + 15725 = $59,754 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(158380 + 170693 + 174894 + 172557 + 176440) / 5 = $170592.8 Mil.
Total Assets at the begining of this year (Jun20) was $158,380 Mil.
Long-Term Debt & Capital Lease Obligation was $30,310 Mil.
Total Current Assets was $53,769 Mil.
Total Current Liabilities was $38,721 Mil.
Net Income was 1753 + 4010 + 5796 + 3626 = $15,185 Mil.

Revenue was 20729 + 20747 + 20691 + 18336 = $80,503 Mil.
Gross Profit was 13862 + 13613 + 13629 + 11757 = $52,861 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(155117 + 155521 + 157728 + 155017 + 158380) / 5 = $156352.6 Mil.
Total Assets at the begining of last year (Jun19) was $155,117 Mil.
Long-Term Debt & Capital Lease Obligation was $25,062 Mil.
Total Current Assets was $45,892 Mil.
Total Current Liabilities was $36,772 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Johnson & Johnson's current Net Income (TTM) was 17,767. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Johnson & Johnson's current Cash Flow from Operations (TTM) was 26,114. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=17767/158380
=0.11217957

ROA (Last Year)=Net Income/Total Assets (Jun19)
=15185/155117
=0.09789385

Johnson & Johnson's return on assets of this year was 0.11217957. Johnson & Johnson's return on assets of last year was 0.09789385. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Johnson & Johnson's current Net Income (TTM) was 17,767. Johnson & Johnson's current Cash Flow from Operations (TTM) was 26,114. ==> 26,114 > 17,767 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=30310/170592.8
=0.17767456

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=25062/156352.6
=0.16029155

Johnson & Johnson's gearing of this year was 0.17767456. Johnson & Johnson's gearing of last year was 0.16029155. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun21)=Total Current Assets/Total Current Liabilities
=53769/38721
=1.38862633

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=45892/36772
=1.24801479

Johnson & Johnson's current ratio of this year was 1.38862633. Johnson & Johnson's current ratio of last year was 1.24801479. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Johnson & Johnson's number of shares in issue this year was 2671.6. Johnson & Johnson's number of shares in issue last year was 2665.5. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=59754/89190
=0.669963

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=52861/80503
=0.65663391

Johnson & Johnson's gross margin of this year was 0.669963. Johnson & Johnson's gross margin of last year was 0.65663391. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=89190/158380
=0.56313929

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=80503/155117
=0.51898245

Johnson & Johnson's asset turnover of this year was 0.56313929. Johnson & Johnson's asset turnover of last year was 0.51898245. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Johnson & Johnson has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Johnson & Johnson  (NYSE:JNJ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Johnson & Johnson Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's Piotroski F-Score 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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