Mead Johnson Nutrition Co.
Mead Johnson Nutrition Co. Fundamental Analysis
Mead Johnson Nutrition Co. (MJN) shows weak financial fundamentals with a PE ratio of 30.63, profit margin of 14.56%, and ROE of -95.18%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MJN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMJN demonstrates superior asset utilization.
Valuation Score
ModerateMJN shows balanced valuation metrics.
Growth Score
WeakMJN faces weak or negative growth trends.
Financial Health Score
ExcellentMJN maintains a strong and stable balance sheet.
Profitability Score
WeakMJN struggles to sustain strong margins.
Key Financial Metrics
Is MJN Expensive or Cheap?
P/E Ratio
MJN trades at 30.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MJN's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values Mead Johnson Nutrition Co. at -32.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.28 times EBITDA. This is generally considered low.
How Well Does MJN Make Money?
Net Profit Margin
For every $100 in sales, Mead Johnson Nutrition Co. keeps $14.56 as profit after all expenses.
Operating Margin
Core operations generate 19.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-95.18 in profit for every $100 of shareholder equity.
ROA
Mead Johnson Nutrition Co. generates $13.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $2.93 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
-32.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.95
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How MJN Stacks Against Its Sector Peers
| Metric | MJN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.63 | 22.37 | Worse (Expensive) |
| ROE | -95.18% | 1250.00% | Weak |
| Net Margin | 14.56% | -5215.00% (disorted) | Strong |
| Debt/Equity | -5.81 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 2.18 | 2.47 | Strong Liquidity |
| ROA | 13.33% | -193095.00% (disorted) | Strong |
MJN outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mead Johnson Nutrition Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility