Morningstar Rating

Stock Research and Analysis

by Ken Perkins

Bulls Say

Around 70% of Mead Johnson's sales are derived from Asia and Latin America, positioning the firm to benefit from rising middle-class incomes in emerging markets.
The network of pediatricians recommending Mead Johnson's branded products provides a steady pipeline of potential customers who will probably make repeat purchases throughout the early years of their child's development.
New infant nutrition products are highly regulated and new ingredients or breakthrough innovations can take several years and large capital investments to bring to market. Read more 

Bears Say

Aging populations, declining birth rates, and higher breastfeeding rates could constrain volume growth in several regions over the long term.
Despite Mead Johnson's competitive advantages, Nestle's acquisition of Pfizer's infant nutrition business makes it the largest player in the industry and could give it unrivaled economies of scale.
The Chinese government's more activist role in monitoring category pricing and its push to drive industry consolidation by supporting local manufacturers could constrain pricing power in the region. Read more 

Management

We believe new yet experienced executives have done a good job increasing shareholder value since Mead Johnson began operating as an independent entity. Stephen Golsby, who was named president and CEO in 1998, retired in the middle of 2013 (but remains   Read more 

Profile

Mead Johnson Nutrition is a supplier of infant and children's nutrition products globally, with its Enfamil brand as the primary source of revenue. Infant nutrition products   Read more 

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