JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1JNJ • US4781601046
198.76 EUR
+4.74 (+2.44%)
Last: Feb 4, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to 1JNJ. 1JNJ was compared to 55 industry peers in the Pharmaceuticals industry. 1JNJ has only an average score on both its financial health and profitability. While showing a medium growth rate, 1JNJ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- 1JNJ had positive earnings in the past year.
- 1JNJ had a positive operating cash flow in the past year.
- Each year in the past 5 years 1JNJ has been profitable.
- 1JNJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- 1JNJ's Return On Assets of 13.03% is fine compared to the rest of the industry. 1JNJ outperforms 80.00% of its industry peers.
- The Return On Equity of 1JNJ (31.69%) is better than 72.73% of its industry peers.
- With a decent Return On Invested Capital value of 14.16%, 1JNJ is doing good in the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1JNJ has a better Profit Margin (27.26%) than 85.45% of its industry peers.
- 1JNJ's Profit Margin has improved in the last couple of years.
- The Operating Margin of 1JNJ (27.00%) is better than 70.91% of its industry peers.
- In the last couple of years the Operating Margin of 1JNJ has grown nicely.
- 1JNJ has a Gross Margin (68.14%) which is in line with its industry peers.
- 1JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- 1JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- There is no outstanding debt for 1JNJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 5.12 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.12, 1JNJ is doing good in the industry, outperforming 69.09% of the companies in the same industry.
- The Debt to FCF ratio of 1JNJ is 2.34, which is a good value as it means it would take 1JNJ, 2.34 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.34, 1JNJ belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that 1JNJ is somewhat dependend on debt financing.
- 1JNJ has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
- Even though the debt/equity ratio score it not favorable for 1JNJ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.43
WACC9.87%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that 1JNJ should not have too much problems paying its short term obligations.
- 1JNJ has a worse Current ratio (1.07) than 69.09% of its industry peers.
- A Quick Ratio of 0.80 indicates that 1JNJ may have some problems paying its short term obligations.
- The Quick ratio of 1JNJ (0.80) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- 1JNJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
- Measured over the past 5 years, 1JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 6.11% on average per year.
- The Revenue has been growing slightly by 6.05% in the past year.
- 1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
3.2 Future
- Based on estimates for the next years, 1JNJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.17% on average per year.
- The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.72, the valuation of 1JNJ can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 1JNJ is on the same level as its industry peers.
- 1JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 28.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 20.29 indicates a rather expensive valuation of 1JNJ.
- 1JNJ's Price/Forward Earnings ratio is in line with the industry average.
- 1JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1JNJ.
- 1JNJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.84 | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of 1JNJ may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)3.56
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.29%, 1JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.95, 1JNJ has a dividend in line with its industry peers.
- 1JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- On average, the dividend of 1JNJ grows each year by 9.24%, which is quite nice.
Dividend Growth(5Y)9.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1JNJ pays out 48.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1JNJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
BIT:1JNJ (2/4/2026, 7:00:00 PM)
198.76
+4.74 (+2.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21 2026-01-21/bmo
Earnings (Next)04-14 2026-04-14
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap478.87B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target181.8 (-8.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend4.12
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.55%
Max EPS beat(2)2.3%
EPS beat(4)4
Avg EPS beat(4)2.37%
Min EPS beat(4)0.55%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.79%
EPS beat(12)11
Avg EPS beat(12)3.6%
EPS beat(16)14
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)1.48%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)-2.01%
Revenue beat(16)7
Avg Revenue beat(16)-8.34%
PT rev (1m)-1.02%
PT rev (3m)15.82%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 20.29 | ||
| P/S | 6.13 | ||
| P/FCF | 28.84 | ||
| P/OCF | 23.35 | ||
| P/B | 7.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)9.15
EY4.6%
EPS(NY)9.8
Fwd EY4.93%
FCF(TTM)6.89
FCFY3.47%
OCF(TTM)8.51
OCFY4.28%
SpS32.41
BVpS27.88
TBVpS-6.16
PEG (NY)3.09
PEG (5Y)3.56
Graham Number75.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.16% | ||
| ROICexc | 16.21% | ||
| ROICexgc | 66.83% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 62.36% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.12 |
F-Score4
WACC9.87%
ROIC/WACC1.43
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y7.6%
FCF growth 1Y-5.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.75%
OCF growth 3YN/A
OCF growth 5YN/A
JOHNSON & JOHNSON / 1JNJ.MI FAQ
What is the fundamental rating for 1JNJ stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1JNJ.MI.
What is the valuation status of JOHNSON & JOHNSON (1JNJ.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to JOHNSON & JOHNSON (1JNJ.MI). This can be considered as Overvalued.
Can you provide the profitability details for JOHNSON & JOHNSON?
JOHNSON & JOHNSON (1JNJ.MI) has a profitability rating of 6 / 10.
What is the valuation of JOHNSON & JOHNSON based on its PE and PB ratios?
The Price/Earnings (PE) ratio for JOHNSON & JOHNSON (1JNJ.MI) is 21.72 and the Price/Book (PB) ratio is 7.13.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10.