JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1JNJ - US4781601046 - Common Stock
176.08 EUR
+3.32 (+1.92%)
Taking everything into account, 1JNJ scores 5 out of 10 in our fundamental rating. 1JNJ was compared to 53 industry peers in the Pharmaceuticals industry. 1JNJ has only an average score on both its financial health and profitability. While showing a medium growth rate, 1JNJ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1JNJ was profitable.
1JNJ had a positive operating cash flow in the past year.
In the past 5 years 1JNJ has always been profitable.
1JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1JNJ (13.03%) is better than 79.25% of its industry peers.
1JNJ has a Return On Equity of 31.69%. This is in the better half of the industry: 1JNJ outperforms 73.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.68%, 1JNJ is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1JNJ is in line with the industry average of 14.02%.
| 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
1JNJ has a better Profit Margin (27.26%) than 84.91% of its industry peers.
1JNJ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.00%, 1JNJ is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
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 45.28% 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 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
1JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1JNJ has about the same amount of shares outstanding.
Compared to 5 years ago, 1JNJ has less shares outstanding
Compared to 1 year ago, 1JNJ has a worse debt to assets ratio.
2.2 Solvency
1JNJ has an Altman-Z score of 4.75. This indicates that 1JNJ is financially healthy and has little risk of bankruptcy at the moment.
1JNJ has a better Altman-Z score (4.75) than 67.92% of its industry peers.
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.
1JNJ has a Debt to FCF ratio of 2.34. This is amongst the best in the industry. 1JNJ outperforms 81.13% of its industry peers.
1JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating 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 54.72% 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 | 4.75 |
ROIC/WACC1.5
WACC9.76%
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.
The Current ratio of 1JNJ (1.07) is worse than 66.04% of its industry peers.
A Quick Ratio of 0.80 indicates that 1JNJ may have some problems paying its short term obligations.
1JNJ's Quick ratio of 0.80 is on the low side compared to the rest of the industry. 1JNJ is outperformed by 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% over the past year.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
Looking at the last year, 1JNJ shows a small growth in Revenue. The Revenue has grown by 5.08% in the last 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)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.
Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
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.
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
Based on the Price/Earnings ratio of 19.74, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Earnings is on the same level as the industry average.
1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 17.58, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, 1JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1JNJ is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1JNJ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.2 | ||
| EV/EBITDA | 15.7 |
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
PEG (5Y)6.92
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, 1JNJ has a reasonable but not impressive dividend return.
1JNJ's Dividend Yield is a higher than the industry average which is at 1.72.
Compared to an average S&P500 Dividend Yield of 1.92, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
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 2Y8.02%
EPS Next 3Y7.82%
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)
Earnings (Next)
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 Target183.68 (4.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend4.22
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)3.41%
PT rev (3m)17.02%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.58 | ||
| P/S | 5.36 | ||
| P/FCF | 25.2 | ||
| P/OCF | 20.41 | ||
| P/B | 6.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.7 |
EPS(TTM)8.92
EY5.07%
EPS(NY)10.01
Fwd EY5.69%
FCF(TTM)6.99
FCFY3.97%
OCF(TTM)8.63
OCFY4.9%
SpS32.85
BVpS28.26
TBVpS-6.24
PEG (NY)2
PEG (5Y)6.92
Graham Number75.32
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
WACC9.76%
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 5Y7.93%
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 5Y5.37%
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 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 6 / 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 19.74 and the Price/Book (PB) ratio is 6.23.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10.