JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - BIT:1JNJ - US4781601046 - Common Stock
162.88 EUR
-0.2 (-0.12%)
Taking everything into account, 1JNJ scores 5 out of 10 in our fundamental rating. 1JNJ was compared to 54 industry peers in the Pharmaceuticals industry. 1JNJ has only an average score on both its financial health and profitability. 1JNJ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1JNJ had positive earnings in the past year.
In the past year 1JNJ had a positive cash flow from operations.
Each year in the past 5 years 1JNJ has been profitable.
1JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1JNJ has a Return On Assets of 13.03%. This is in the better half of the industry: 1JNJ outperforms 79.63% of its industry peers.
The Return On Equity of 1JNJ (31.69%) is better than 75.93% of its industry peers.
With a decent Return On Invested Capital value of 14.68%, 1JNJ is doing good in the industry, outperforming 75.93% of the companies in the same industry.
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 14.46%.
| 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
The Profit Margin of 1JNJ (27.26%) is better than 88.89% of its industry peers.
1JNJ's Profit Margin has declined in the last couple of years.
The Operating Margin of 1JNJ (27.00%) is better than 74.07% of its industry peers.
1JNJ's Operating Margin has improved in the last couple of years.
The Gross Margin of 1JNJ (68.14%) is comparable to the rest of the industry.
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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1JNJ is creating some value.
The number of shares outstanding for 1JNJ remains at a similar level compared to 1 year ago.
1JNJ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1JNJ has a worse debt to assets ratio.
2.2 Solvency
1JNJ has an Altman-Z score of 4.54. This indicates that 1JNJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.54, 1JNJ is in the better half of the industry, outperforming 70.37% 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 a decent Debt to FCF ratio value of 2.34, 1JNJ is doing good in the industry, outperforming 75.93% of the companies in the same industry.
1JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating 1JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of 1JNJ (0.55) is comparable to the rest of the 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 | 4.54 |
ROIC/WACC1.6
WACC9.19%
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 72.22% of the companies in the same industry.
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.
With a Quick ratio value of 0.80, 1JNJ is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, 1JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
The Revenue has been growing slightly by 5.08% in the past 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
The Earnings Per Share is expected to grow by 7.38% on average over the next years.
1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.24% yearly.
EPS Next Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.38%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.24%
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
Based on the Price/Earnings ratio of 18.14, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, 1JNJ is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.16, which indicates a correct valuation of 1JNJ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1JNJ is on the same level as its industry peers.
1JNJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1JNJ.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1JNJ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1JNJ does not grow enough to justify the current Price/Earnings ratio.
1JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)6.36
EPS Next 2Y8%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.78%.
1JNJ's Dividend Yield is a higher than the industry average which is at 2.93.
Compared to an average S&P500 Dividend Yield of 2.37, 1JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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.
1JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y8%
EPS Next 3Y7.66%
BIT:1JNJ (11/4/2025, 7:00:00 PM)
162.88
-0.2 (-0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap392.27B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.48
Price Target176.37 (8.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend4.25
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)12.36%
PT rev (3m)18.26%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.16 | ||
| P/S | 4.92 | ||
| P/FCF | 23.14 | ||
| P/OCF | 18.74 | ||
| P/B | 5.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.45 |
EPS(TTM)8.98
EY5.51%
EPS(NY)10.08
Fwd EY6.19%
FCF(TTM)7.04
FCFY4.32%
OCF(TTM)8.69
OCFY5.34%
SpS33.1
BVpS28.47
TBVpS-6.29
PEG (NY)1.84
PEG (5Y)6.36
Graham Number75.85
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 | 4.54 |
F-Score5
WACC9.19%
ROIC/WACC1.6
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 Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.38%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.24%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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 5 / 10 to 1JNJ.MI.
Can you provide the valuation status for JOHNSON & JOHNSON?
ChartMill assigns a valuation rating of 4 / 10 to JOHNSON & JOHNSON (1JNJ.MI). This can be considered as Fairly Valued.
What is the profitability of 1JNJ stock?
JOHNSON & JOHNSON (1JNJ.MI) has a profitability rating of 6 / 10.
What is the earnings growth outlook for JOHNSON & JOHNSON?
The Earnings per Share (EPS) of JOHNSON & JOHNSON (1JNJ.MI) is expected to grow by 9.86% in the next year.
Can you provide the dividend sustainability for 1JNJ stock?
The dividend rating of JOHNSON & JOHNSON (1JNJ.MI) is 4 / 10 and the dividend payout ratio is 48.7%.