JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1JNJ - US4781601046 - Common Stock
176.08 EUR
+3.32 (+1.92%)
Overall 1JNJ gets a fundamental rating of 6 out of 10. We evaluated 1JNJ against 53 industry peers in the Pharmaceuticals industry. 1JNJ has an excellent profitability rating, but there are some minor concerns on its financial health. 1JNJ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1JNJ was profitable.
- In the past year 1JNJ had a positive cash flow from operations.
- In the past 5 years 1JNJ has always been profitable.
- In the past 5 years 1JNJ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1JNJ (13.03%) is better than 81.13% of its industry peers.
- 1JNJ has a better Return On Equity (31.69%) than 75.47% of its industry peers.
- 1JNJ has a Return On Invested Capital of 14.68%. This is in the better half of the industry: 1JNJ outperforms 73.58% of its industry peers.
- 1JNJ had an Average Return On Invested Capital over the past 3 years of 15.41%. This is in line with the industry average of 14.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.68% |
ROA(3y)12.79%
ROA(5y)11.65%
ROE(3y)31.38%
ROE(5y)29.12%
ROIC(3y)15.41%
ROIC(5y)14.48%
1.3 Margins
- Looking at the Profit Margin, with a value of 27.26%, 1JNJ belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1JNJ has declined.
- With a decent Operating Margin value of 27.00%, 1JNJ is doing good in the industry, outperforming 73.58% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1JNJ has grown nicely.
- 1JNJ has a Gross Margin of 68.14%. This is comparable to the rest of the industry: 1JNJ outperforms 47.17% of its industry peers.
- In the last couple of years the Gross Margin of 1JNJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
OM growth 3Y0.33%
OM growth 5Y3.14%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.56%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1JNJ is still creating some value.
- 1JNJ has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1JNJ has been reduced compared to 5 years ago.
- The debt/assets ratio for 1JNJ is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.75 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
- 1JNJ has a better Altman-Z score (4.75) than 67.92% of its industry peers.
- 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.
- 1JNJ has a Debt to FCF ratio of 2.34. This is amongst the best in the industry. 1JNJ outperforms 83.02% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that 1JNJ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.55, 1JNJ is in line with its industry, outperforming 56.60% of the companies in the same industry.
- Although 1JNJ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.51
WACC9.74%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that 1JNJ should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.07, 1JNJ is doing worse than 64.15% of the companies in the same industry.
- A Quick Ratio of 0.80 indicates that 1JNJ may have some problems paying its short term obligations.
- 1JNJ has a Quick ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- 1JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
- 1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
- Looking at the last year, 1JNJ shows a small growth in Revenue. The Revenue has grown by 5.08% in the last year.
- Measured over the past years, 1JNJ shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
3.2 Future
- 1JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
- Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.72 indicates a rather expensive valuation of 1JNJ.
- 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 27.54, which is the current average of the S&P500 Index.
- 1JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 17.56.
- 1JNJ's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, 1JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
- 1JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
- 60.38% of the companies in the same industry are more expensive than 1JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.16 | ||
| EV/EBITDA | 15.68 |
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)2
PEG (5Y)6.92
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
- 1JNJ has a Yearly Dividend Yield of 2.53%.
- 1JNJ's Dividend Yield is a higher than the industry average which is at 1.72.
- Compared to an average S&P500 Dividend Yield of 1.92, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
- The dividend of 1JNJ is nicely growing with an annual growth rate of 9.24%!
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.
- 1JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
BIT:1JNJ (1/6/2026, 7:00:00 PM)
176.08
+3.32 (+1.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-21 2026-01-21/amc
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap424.23B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75
Price Target183.68 (4.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend4.22
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)3.41%
PT rev (3m)17.02%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 17.56 | ||
| P/S | 5.35 | ||
| P/FCF | 25.16 | ||
| P/OCF | 20.37 | ||
| P/B | 6.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.68 |
EPS(TTM)8.93
EY5.07%
EPS(NY)10.03
Fwd EY5.7%
FCF(TTM)7
FCFY3.97%
OCF(TTM)8.64
OCFY4.91%
SpS32.9
BVpS28.31
TBVpS-6.25
PEG (NY)2
PEG (5Y)6.92
Graham Number75.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.68% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 69.32% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
ROA(3y)12.79%
ROA(5y)11.65%
ROE(3y)31.38%
ROE(5y)29.12%
ROIC(3y)15.41%
ROIC(5y)14.48%
ROICexc(3y)18.76%
ROICexc(5y)17.88%
ROICexgc(3y)74.12%
ROICexgc(5y)78.04%
ROCE(3y)18.6%
ROCE(5y)17.28%
ROICexgc growth 3Y1.2%
ROICexgc growth 5Y-0.66%
ROICexc growth 3Y3.58%
ROICexc growth 5Y3.41%
OM growth 3Y0.33%
OM growth 5Y3.14%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.56%
GM growth 5Y0.76%
F-Score5
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 | 4.75 |
F-Score5
WACC9.74%
ROIC/WACC1.51
Cap/Depr(3y)59.5%
Cap/Depr(5y)54.84%
Cap/Sales(3y)5.11%
Cap/Sales(5y)4.8%
Profit Quality(3y)96.25%
Profit Quality(5y)104.12%
High Growth Momentum
Growth
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.55%
EBIT Next 3Y13.35%
EBIT Next 5Y8.85%
FCF growth 1Y24.53%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y19.36%
OCF growth 3Y1.2%
OCF growth 5Y0.72%
JOHNSON & JOHNSON / 1JNJ.MI FAQ
What is the fundamental rating for 1JNJ stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1JNJ.MI.
What is the valuation status of JOHNSON & JOHNSON (1JNJ.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to JOHNSON & JOHNSON (1JNJ.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for JOHNSON & JOHNSON?
JOHNSON & JOHNSON (1JNJ.MI) has a profitability rating of 7 / 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 19.72 and the Price/Book (PB) ratio is 6.22.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 6 / 10.