JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1JNJ • US4781601046
191.44 EUR
+6.04 (+3.26%)
Last: Jan 28, 2026, 07:00 PM
Overall 1JNJ gets a fundamental rating of 5 out of 10. We evaluated 1JNJ against 55 industry peers in the Pharmaceuticals industry. 1JNJ has an excellent profitability rating, but there are some minor concerns on its financial health. 1JNJ is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- Each year in the past 5 years 1JNJ has been profitable.
- Of the past 5 years 1JNJ 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.03%, 1JNJ belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 31.69%, 1JNJ is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.16%, 1JNJ is in the better half of the industry, outperforming 69.09% 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
- The Profit Margin of 1JNJ (27.26%) is better than 87.27% of its industry peers.
- 1JNJ's Profit Margin has improved in the last couple of years.
- 1JNJ has a better Operating Margin (27.00%) than 70.91% of its industry peers.
- 1JNJ's Operating Margin has improved in the last couple of years.
- 1JNJ's Gross Margin of 68.14% is in line compared to the rest of the industry. 1JNJ outperforms 45.45% of 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 5.05 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.05, 1JNJ is doing good in the industry, outperforming 74.55% 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.
- With an excellent Debt to FCF ratio value of 2.34, 1JNJ belongs to the best of the industry, outperforming 81.82% 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 of 0.55. This is comparable to the rest of the industry: 1JNJ outperforms 54.55% of its industry peers.
- 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 | 5.05 |
ROIC/WACC1.45
WACC9.77%
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 Current ratio of 1.07. This is in the lower half of the industry: 1JNJ underperforms 67.27% of its industry peers.
- 1JNJ has a Quick Ratio of 1.07. This is a bad value and indicates that 1JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, 1JNJ is doing worse than 61.82% of the companies in the same industry.
| 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.
- 1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
- The Revenue has been growing slightly by 6.05% in the past year.
- The Revenue has been growing slightly by 2.67% on average over the past years.
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
- The Earnings Per Share is expected to grow by 8.17% on average over the next years. This is quite good.
- 1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
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.
- 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 21.13 indicates a rather expensive valuation of 1JNJ.
- 1JNJ's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of 1JNJ to the average of the S&P500 Index (28.32), we can say 1JNJ is valued slightly cheaper.
- A Price/Forward Earnings ratio of 19.74 indicates a rather expensive valuation of 1JNJ.
- 1JNJ's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
- 1JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
- 1JNJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.05 | ||
| EV/EBITDA | 17.43 |
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)3
PEG (5Y)3.46
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 pays a bit more dividend than its industry peers.
- 1JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| 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%
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 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 21.13 and the Price/Book (PB) ratio is 6.93.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10.