JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1JNJ - US4781601046 - Common Stock
176.08 EUR
+3.32 (+1.92%)
1JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Pharmaceuticals industry. 1JNJ scores excellent on profitability, but there are some minor concerns on its financial health. 1JNJ has a correct valuation and a medium 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.
- 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
- With an excellent Return On Assets value of 13.03%, 1JNJ belongs to the best of the industry, outperforming 81.13% 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 75.47% of the companies in the same industry.
- The Return On Invested Capital of 1JNJ (14.68%) is better than 73.58% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1JNJ is in line with the industry average of 13.93%.
| 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 86.79% 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 73.58% of its industry peers.
- 1JNJ's Operating Margin has improved in the last couple of years.
- 1JNJ has a Gross Margin (68.14%) which is in line with 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1JNJ is creating some value.
- 1JNJ has about the same amout of shares outstanding than it did 1 year ago.
- 1JNJ has less shares outstanding than it did 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.
- With a decent Altman-Z score value of 4.75, 1JNJ is doing good in the industry, outperforming 67.92% of the companies in the same industry.
- 1JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as 1JNJ would need 2.34 years to pay back of 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 83.02% 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.
- 1JNJ's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. 1JNJ outperforms 56.60% of its industry peers.
- 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 | 4.75 |
ROIC/WACC1.5
WACC9.81%
2.3 Liquidity
- 1JNJ has a Current Ratio of 1.07. This is a normal value and indicates that 1JNJ is financially healthy and should not expect problems in meeting 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.
- 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.
- 1JNJ's Quick ratio of 0.80 is in line compared to the rest of the industry. 1JNJ outperforms 41.51% of its industry peers.
| 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
- Based on estimates for the next years, 1JNJ will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
- 1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y8.9%
EPS Next 2Y7.57%
EPS Next 3Y7.79%
EPS Next 5Y7.93%
Revenue Next Year5.63%
Revenue Next 2Y5.56%
Revenue Next 3Y5.35%
Revenue Next 5Y5.37%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 19.70, 1JNJ is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as 1JNJ.
- 1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 17.70, 1JNJ is valued on the expensive side.
- 1JNJ's Price/Forward Earnings is on the same level as the industry average.
- 1JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
- 1JNJ's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, 1JNJ is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 15.67 |
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)2.21
PEG (5Y)6.91
EPS Next 2Y7.57%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.37%, 1JNJ has a reasonable but not impressive dividend return.
- 1JNJ's Dividend Yield is a higher than the industry average which is at 1.59.
- Compared to an average S&P500 Dividend Yield of 1.85, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
- 48.70% of the earnings are spent on dividend by 1JNJ. 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 2Y7.57%
EPS Next 3Y7.79%
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/bmo
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 Target181.8 (3.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend4.23
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)2.36%
PT rev (3m)15.82%
EPS NQ rev (1m)-3.63%
EPS NQ rev (3m)-5.21%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 17.7 | ||
| P/S | 5.35 | ||
| P/FCF | 25.15 | ||
| P/OCF | 20.36 | ||
| P/B | 6.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.67 |
EPS(TTM)8.94
EY5.08%
EPS(NY)9.95
Fwd EY5.65%
FCF(TTM)7
FCFY3.98%
OCF(TTM)8.65
OCFY4.91%
SpS32.92
BVpS28.32
TBVpS-6.26
PEG (NY)2.21
PEG (5Y)6.91
Graham Number75.48
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
WACC9.81%
ROIC/WACC1.5
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 Y8.9%
EPS Next 2Y7.57%
EPS Next 3Y7.79%
EPS Next 5Y7.93%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.63%
Revenue Next 2Y5.56%
Revenue Next 3Y5.35%
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 19.7 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.