Analysis of Johnson and Johnson Stock

Kseniia Emelianova, BSc

Master's thesis

Abstract:

The goal of this diploma thesis lies in the evaluation of the financial position of Johnson and Johnson, a large American company specializing in the pharmaceutical industry. The author consequently evaluates the financial situation of the company in relation to financial position, financial performance, and the situation with liquidity, solvency, profitability, and valuation. Ultimately, the author comes up with a conclusion of whether investing in Johnson and Johnson stocks is worth considering as of 2022-2023. For the methodology of the work, the author focuses on quantitative approaches, namely horizontal analysis, financial ratio analysis, and dividend discount model. The time interval used for the analysis covers 5 years – from 2016 to 2021 and the author uses information published by the company in their financial statements as the source of data. The author believes that investing in Johnson&Johnson in 2023 can be considered a good idea, especially given the fact that almost all stocks now have lost their value due to the presence of the bearish tendency on the market, which is quite likely to be soon replaced by a bullish one, when the US Federal Reserve will decide to lower the interest rates and accelerate all economic processes

Keywords

Johnson and Johnson, Valuation, Stocks, Stock market, Liquidity, Solvency, Profitability, Pharma-ceuticals

Language used: English

Date on which the thesis was submitted / produced: 3. 4. 2023

Thesis defence

• Date of defence: 4. 6. 2024
• Supervisor: Ing. Karel Malec, Ph.D.
• Reader: Jana Skřivánková, B.E., externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management