JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Euronext Milan - US4781601046 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1JNJ. 1JNJ was compared to 52 industry peers in the Pharmaceuticals industry. 1JNJ has an excellent profitability rating, 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
1JNJ had positive earnings in the past year.
1JNJ had a positive operating cash flow in the past year.
In the past 5 years 1JNJ has always been profitable.
Each year in the past 5 years 1JNJ had a positive operating cash flow.
1.2 Ratios
1JNJ has a Return On Assets of 7.81%. This is in the better half of the industry: 1JNJ outperforms 71.15% of its industry peers.
1JNJ has a Return On Equity of 19.68%. This is amongst the best in the industry. 1JNJ outperforms 80.77% of its industry peers.
1JNJ has a Return On Invested Capital of 14.95%. This is in the better half of the industry: 1JNJ outperforms 76.92% 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 13.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 19.68% | ||
| ROIC | 14.95% |
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's Profit Margin of 15.84% is fine compared to the rest of the industry. 1JNJ outperforms 78.85% of its industry peers.
1JNJ's Profit Margin has declined in the last couple of years.
1JNJ has a better Operating Margin (26.11%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
The Gross Margin of 1JNJ (69.11%) 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 | 26.11% | ||
| PM (TTM) | 15.84% | ||
| GM | 69.11% |
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.
Compared to 1 year ago, 1JNJ has about the same amount of shares outstanding.
1JNJ has less shares outstanding than it did 5 years ago.
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
1JNJ has an Altman-Z score of 4.37. 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 4.37, 1JNJ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of 1JNJ is 1.85, which is an excellent value as it means it would take 1JNJ, only 1.85 years of fcf income to pay off all of its debts.
1JNJ's Debt to FCF ratio of 1.85 is amongst the best of the industry. 1JNJ outperforms 88.46% of its industry peers.
1JNJ has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, 1JNJ is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.49
WACC10.01%
2.3 Liquidity
1JNJ has a Current Ratio of 1.11. 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 (1.11) is worse than 76.92% of its industry peers.
A Quick Ratio of 0.86 indicates that 1JNJ may have some problems paying its short term obligations.
1JNJ's Quick ratio of 0.86 is on the low side compared to the rest of the industry. 1JNJ is outperformed by 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for 1JNJ have decreased by -4.22% in the last year.
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 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)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
3.2 Future
1JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.24% yearly.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y6.82%
EPS Next 2Y5.76%
EPS Next 3Y5.72%
EPS Next 5Y5.24%
Revenue Next Year1.16%
Revenue Next 2Y2.62%
Revenue Next 3Y3.13%
Revenue Next 5Y3.36%
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
With a Price/Earnings ratio of 16.61, 1JNJ is valued correctly.
Based on the Price/Earnings ratio, 1JNJ is valued a bit cheaper than 71.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. 1JNJ is valued slightly cheaper when compared to this.
1JNJ is valuated correctly with a Price/Forward Earnings ratio of 15.55.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.55 |
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.
65.38% of the companies in the same industry are more expensive than 1JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 12.84 |
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)2.44
PEG (5Y)5.83
EPS Next 2Y5.76%
EPS Next 3Y5.72%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 2.86, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
84.05% of the earnings are spent on dividend by 1JNJ. This is not a sustainable payout ratio.
1JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.05%
EPS Next 2Y5.76%
EPS Next 3Y5.72%
BIT:1JNJ (3/5/2025, 7:00:00 PM)
152.84
-4.18 (-2.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners73.73%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap367.98B
Analysts73.57
Price Target165.31 (8.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend4.52
Dividend Growth(5Y)9.24%
DP84.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.48%
Min EPS beat(2)0.68%
Max EPS beat(2)8.28%
EPS beat(4)4
Avg EPS beat(4)3.52%
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)3.4%
EPS beat(16)14
Avg EPS beat(16)4.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-6.27%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)1.29%
PT rev (3m)-2.17%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.55 | ||
| P/S | 4.5 | ||
| P/FCF | 20.13 | ||
| P/OCF | 16.46 | ||
| P/B | 5.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.84 |
EPS(TTM)9.2
EY6.02%
EPS(NY)9.83
Fwd EY6.43%
FCF(TTM)7.59
FCFY4.97%
OCF(TTM)9.28
OCFY6.07%
SpS33.98
BVpS27.35
TBVpS-3.95
PEG (NY)2.44
PEG (5Y)5.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 19.68% | ||
| ROCE | 17.87% | ||
| ROIC | 14.95% | ||
| ROICexc | 18.3% | ||
| ROICexgc | 72.38% | ||
| OM | 26.11% | ||
| PM (TTM) | 15.84% | ||
| GM | 69.11% | ||
| FCFM | 22.34% |
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-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 60.28% | ||
| Cap/Sales | 4.98% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 79.49% | ||
| Profit Quality | 141.06% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.37 |
F-Score4
WACC10.01%
ROIC/WACC1.49
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)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
EPS Next Y6.82%
EPS Next 2Y5.76%
EPS Next 3Y5.72%
EPS Next 5Y5.24%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
Revenue Next Year1.16%
Revenue Next 2Y2.62%
Revenue Next 3Y3.13%
Revenue Next 5Y3.36%
EBIT growth 1Y-2.91%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year23.32%
EBIT Next 3Y11.11%
EBIT Next 5Y7.4%
FCF growth 1Y8.74%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y6.47%
OCF growth 3Y1.2%
OCF growth 5Y0.72%