Morningstar Rating

Stock Research and Analysis

by Liang Feng

Bulls Say

Over 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 pipeline of customers who will likely make repeat purchases during the early years of their children's development.
Mead Johnson has planted seeds in emerging markets, like India, which currently generate minimal sales, but could eventually boom as a result of shifting consumer behaviors, wage growth, and rising female labor participation rates. Read more 

Bears Say

Aging populations, declining birth rates, and higher breastfeeding rates could constrain volume growth in several regions over the long term.
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.
Increased competition from local brands and private-label products, along with education programs advocating for breastfeeding, could reduce Mead Johnson’s brand loyalty and ability to maintain its premium price points. Read more 

Management

We have assigned Mead Johnson a Standard stewardship rating. We believe the executive team has done a good job increasing shareholder value since the firm began operating as an independent entity. Kasper Jakobsen assumed the CEO role after Stephen Golsby,  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 

Friday Five: Wide-Moat Outperformers From 2014 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.