JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Borsa Italiana Milan - US4781601046 - Common Stock - Currency: EUR
1JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Pharmaceuticals industry. 1JNJ has an average financial health and profitability rating. 1JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1JNJ was profitable.
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
With a decent Return On Assets value of 8.24%, 1JNJ is doing good in the industry, outperforming 68.75% of the companies in the same industry.
With a decent Return On Equity value of 20.93%, 1JNJ is doing good in the industry, outperforming 79.17% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.25%, 1JNJ belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROIC | 16.25% |
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's Profit Margin of 16.74% is fine compared to the rest of the industry. 1JNJ outperforms 79.17% of its industry peers.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ's Operating Margin of 27.57% is amongst the best of the industry. 1JNJ outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
Looking at the Gross Margin, with a value of 69.16%, 1JNJ is in line with its industry, outperforming 47.92% of the companies in the same industry.
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 | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% |
OM growth 3Y0.85%
OM growth 5Y3.47%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.31%
GM growth 5Y0.91%
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 4.20 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
1JNJ has a better Altman-Z score (4.20) than 68.75% of its industry peers.
The Debt to FCF ratio of 1JNJ is 1.72, which is an excellent value as it means it would take 1JNJ, only 1.72 years of fcf income to pay off all of its debts.
1JNJ has a Debt to FCF ratio of 1.72. This is amongst the best in the industry. 1JNJ outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that 1JNJ is not too dependend on debt financing.
1JNJ has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.64
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1JNJ should not have too much problems paying its short term obligations.
1JNJ's Current ratio of 1.03 is on the low side compared to the rest of the industry. 1JNJ is outperformed by 79.17% of its industry peers.
A Quick Ratio of 0.79 indicates that 1JNJ may have some problems paying its short term obligations.
The Quick ratio of 1JNJ (0.79) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for 1JNJ have decreased by -4.22% in the last year.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
The Revenue has been growing slightly by 4.30% in the past year.
1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
3.2 Future
Based on estimates for the next years, 1JNJ will show a small growth in Earnings Per Share. The EPS will grow by 5.24% on average per year.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y6.61%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
EPS Next 5Y5.24%
Revenue Next Year2.48%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y3.36%
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
The Price/Earnings ratio is 15.23, which indicates a correct valuation of 1JNJ.
Based on the Price/Earnings ratio, 1JNJ is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1JNJ to the average of the S&P500 Index (28.47), we can say 1JNJ is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.30 indicates a correct valuation of 1JNJ.
Based on the Price/Forward Earnings ratio, 1JNJ is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
1JNJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
64.58% of the companies in the same industry are more expensive than 1JNJ, based on the Enterprise Value to EBITDA ratio.
1JNJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1JNJ is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.67 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)5.34
EPS Next 2Y6.04%
EPS Next 3Y6.22%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.69, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of 1JNJ is nicely growing with an annual growth rate of 9.96%!
Dividend Growth(5Y)9.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1JNJ pays out 79.71% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1JNJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP79.71%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
JOHNSON & JOHNSON
BIT:1JNJ (2/3/2025, 7:00:00 PM)
147.32
+2.12 (+1.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap354.69B
Analysts74.67
Price Target163.2 (10.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend4.46
Dividend Growth(5Y)9.96%
DP79.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.83%
Min EPS beat(2)3.37%
Max EPS beat(2)8.28%
EPS beat(4)3
Avg EPS beat(4)3.2%
Min EPS beat(4)-0.59%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)3.31%
EPS beat(16)14
Avg EPS beat(16)4.28%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)0.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.82%
Revenue beat(8)4
Avg Revenue beat(8)-3.38%
Revenue beat(12)4
Avg Revenue beat(12)-11.37%
Revenue beat(16)7
Avg Revenue beat(16)-8.24%
PT rev (1m)-4.88%
PT rev (3m)-0.38%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.3 | ||
| P/S | 4.18 | ||
| P/FCF | 17.67 | ||
| P/OCF | 14.58 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.69 |
EPS(TTM)9.67
EY6.56%
EPS(NY)10.31
Fwd EY6.99%
FCF(TTM)8.34
FCFY5.66%
OCF(TTM)10.11
OCFY6.86%
SpS35.24
BVpS28.2
TBVpS-5.68
PEG (NY)2.31
PEG (5Y)5.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROCE | 19.11% | ||
| ROIC | 16.25% | ||
| ROICexc | 19.3% | ||
| ROICexgc | 87.24% | ||
| OM | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% | ||
| FCFM | 23.66% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.85%
OM growth 5Y3.47%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.31%
GM growth 5Y0.91%
F-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 60.4% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.92% | ||
| Profit Quality | 141.28% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 4.2 |
F-Score4
WACC9.9%
ROIC/WACC1.64
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)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
EPS Next Y6.61%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
EPS Next 5Y5.24%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
Revenue Next Year2.48%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y3.36%
EBIT growth 1Y-0.84%
EBIT growth 3Y4.99%
EBIT growth 5Y5.12%
EBIT Next Year23.23%
EBIT Next 3Y11.19%
EBIT Next 5Y7.4%
FCF growth 1Y31.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.01%
OCF growth 3YN/A
OCF growth 5YN/A