JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Euronext Milan - US4781601046 - Common Stock - Currency: EUR
1JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 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.
1JNJ had positive earnings in each of the past 5 years.
Each year in the past 5 years 1JNJ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1JNJ (11.26%) is better than 80.77% of its industry peers.
1JNJ's Return On Equity of 27.92% is amongst the best of the industry. 1JNJ outperforms 80.77% of its industry peers.
The Return On Invested Capital of 1JNJ (13.67%) is better than 78.85% 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 14.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROIC | 13.67% |
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 Profit Margin of 24.41%. This is amongst the best in the industry. 1JNJ outperforms 88.46% of its industry peers.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ has a better Operating Margin (26.16%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
1JNJ's Gross Margin of 68.34% is in line compared to the rest of the industry. 1JNJ outperforms 50.00% of 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 | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% |
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.
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.
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.07 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
1JNJ's Altman-Z score of 4.07 is fine compared to the rest of the industry. 1JNJ outperforms 67.31% of its industry peers.
1JNJ has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as 1JNJ would need 2.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.57, 1JNJ belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that 1JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of 1JNJ (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.32
WACC10.38%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 1JNJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, 1JNJ is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
A Quick Ratio of 1.03 indicates that 1JNJ should not have too much problems paying its short term obligations.
The Quick ratio of 1JNJ (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
1JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
1JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.30%.
1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
3.2 Future
1JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.89% yearly.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
Revenue Next 5Y3.87%
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 15.49, 1JNJ is valued correctly.
1JNJ's Price/Earnings ratio is a bit cheaper when compared to the industry. 1JNJ is cheaper than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. 1JNJ is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.82 indicates a correct valuation of 1JNJ.
The rest of the industry has a similar Price/Forward Earnings ratio as 1JNJ.
1JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.82 |
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.
Based on the Price/Free Cash Flow ratio, 1JNJ is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.39 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1JNJ may justify a higher PE ratio.
PEG (NY)2.08
PEG (5Y)5.43
EPS Next 2Y6.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 3.30%.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.00.
1JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 54.76% 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.
DP54.76%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
BIT:1JNJ (7/8/2025, 7:00:00 PM)
133.24
+0.58 (+0.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap320.58B
Analysts72.41
Price Target151.22 (13.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend4.2
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.68%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.57%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)11
Avg EPS beat(12)3.64%
EPS beat(16)14
Avg EPS beat(16)4.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)0.53%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-6.08%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-0.29%
PT rev (3m)-5.52%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.82 | ||
| P/S | 4.19 | ||
| P/FCF | 18.39 | ||
| P/OCF | 15.11 | ||
| P/B | 4.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.77 |
EPS(TTM)8.6
EY6.45%
EPS(NY)9.64
Fwd EY7.23%
FCF(TTM)7.25
FCFY5.44%
OCF(TTM)8.82
OCFY6.62%
SpS31.78
BVpS27.79
TBVpS-1.11
PEG (NY)2.08
PEG (5Y)5.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROCE | 17.09% | ||
| ROIC | 13.67% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 72.98% | ||
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% | ||
| FCFM | 22.8% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 93.4% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.07 |
F-Score5
WACC10.38%
ROIC/WACC1.32
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
Revenue Next 5Y3.87%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
FCF growth 1Y25.69%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y21.06%
OCF growth 3Y1.2%
OCF growth 5Y0.72%