JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1JNJ - US4781601046 - Common Stock
182.02 EUR
+7.9 (+4.54%)
We assign a fundamental rating of 5 out of 10 to 1JNJ. 1JNJ was compared to 54 industry peers in the Pharmaceuticals industry. 1JNJ scores excellent on profitability, but there are some minor concerns on its financial health. 1JNJ is quite expensive at the moment. It does show a decent 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.
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
1JNJ has a better Return On Assets (13.03%) than 81.48% of its industry peers.
The Return On Equity of 1JNJ (31.69%) is better than 75.93% of its industry peers.
The Return On Invested Capital of 1JNJ (14.68%) is better than 74.07% 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 13.79%.
| 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
With an excellent Profit Margin value of 27.26%, 1JNJ belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
In the last couple of years the Profit Margin of 1JNJ has declined.
Looking at the Operating Margin, with a value of 27.00%, 1JNJ is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
1JNJ's Operating Margin has improved in the last couple of years.
1JNJ has a Gross Margin (68.14%) which is comparable to the rest of the 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% | ||
| 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.
Compared to 1 year ago, 1JNJ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.87, 1JNJ is doing good in the industry, outperforming 74.07% 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.
The Debt to FCF ratio of 1JNJ (2.34) is better than 75.93% of its industry peers.
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 50.00% 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 | 4.87 |
ROIC/WACC1.5
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 72.22% 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.
With a Quick ratio value of 0.80, 1JNJ is not doing good in the industry: 64.81% 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.
1JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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 7.68% on average per year.
1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
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
With a Price/Earnings ratio of 20.66, 1JNJ is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as 1JNJ.
The average S&P500 Price/Earnings ratio is at 26.59. 1JNJ is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.40, which indicates a rather expensive current valuation of 1JNJ.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
1JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
1JNJ's Enterprise Value to EBITDA ratio is in line with the industry average.
1JNJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.38 | ||
| EV/EBITDA | 16.41 |
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)2.1
PEG (5Y)7.25
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, 1JNJ has a reasonable but not impressive dividend return.
1JNJ's Dividend Yield is a higher than the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 1.87, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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 (12/15/2025, 7:00:00 PM)
182.02
+7.9 (+4.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap438.54B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target183.68 (0.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend4.19
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)4.15%
PT rev (3m)18.74%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 18.4 | ||
| P/S | 5.61 | ||
| P/FCF | 26.38 | ||
| P/OCF | 21.36 | ||
| P/B | 6.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.41 |
EPS(TTM)8.81
EY4.84%
EPS(NY)9.89
Fwd EY5.43%
FCF(TTM)6.9
FCFY3.79%
OCF(TTM)8.52
OCFY4.68%
SpS32.45
BVpS27.92
TBVpS-6.17
PEG (NY)2.1
PEG (5Y)7.25
Graham Number74.39
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 | 4.87 |
F-Score5
WACC9.77%
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 Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
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 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.64%
EBIT Next 3Y13.37%
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 3 / 10 to JOHNSON & JOHNSON (1JNJ.MI). This can be considered as Overvalued.
What is the profitability of 1JNJ stock?
JOHNSON & JOHNSON (1JNJ.MI) has a profitability rating of 7 / 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 9.85% in the next year.
Can you provide the dividend sustainability for 1JNJ stock?
The dividend rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10 and the dividend payout ratio is 48.7%.