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 6 out of 10 in our fundamental rating. 1JNJ was compared to 53 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
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.
In the past 5 years 1JNJ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.03%, 1JNJ belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
1JNJ has a better Return On Equity (31.69%) than 75.47% 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 73.58% 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 86.79% of its industry peers.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ's Operating Margin of 27.00% is fine compared to the rest of the industry. 1JNJ outperforms 73.58% of its industry peers.
1JNJ's Operating Margin has improved in the last couple of years.
1JNJ has a Gross Margin of 68.14%. This is comparable to the rest of the industry: 1JNJ outperforms 47.17% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1JNJ is still creating some value.
The number of shares outstanding for 1JNJ remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1JNJ has less shares outstanding
The debt/assets ratio for 1JNJ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.76 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
1JNJ has a Altman-Z score of 4.76. This is in the better half of the industry: 1JNJ outperforms 67.92% of its industry peers.
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.
The Debt to FCF ratio of 1JNJ (2.34) is better than 83.02% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that 1JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of 1JNJ (0.55) is comparable to the rest of the industry.
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 | 4.76 |
ROIC/WACC1.5
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.07 indicates that 1JNJ should not have too much problems paying its short term obligations.
The Current ratio of 1JNJ (1.07) is worse than 64.15% 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 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
The Earnings Per Share has been growing slightly by 1.37% over the past year.
1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
The Revenue has been growing slightly by 5.08% in the past year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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.
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
A Price/Earnings ratio of 19.83 indicates a rather expensive valuation of 1JNJ.
Based on the Price/Earnings ratio, 1JNJ is valued a bit cheaper than 60.38% of the companies in the same industry.
1JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.66, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
1JNJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 17.66 |
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.
1JNJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1JNJ is cheaper than 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.31 | ||
| EV/EBITDA | 15.77 |
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)2.01
PEG (5Y)6.95
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.53%.
1JNJ's Dividend Yield is a higher than the industry average which is at 1.72.
1JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| 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 | 19.83 | ||
| Fwd PE | 17.66 | ||
| P/S | 5.38 | ||
| P/FCF | 25.31 | ||
| P/OCF | 20.49 | ||
| P/B | 6.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.77 |
EPS(TTM)8.88
EY5.04%
EPS(NY)9.97
Fwd EY5.66%
FCF(TTM)6.96
FCFY3.95%
OCF(TTM)8.59
OCFY4.88%
SpS32.71
BVpS28.14
TBVpS-6.22
PEG (NY)2.01
PEG (5Y)6.95
Graham Number74.99
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 | 4.76 |
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 19.83 and the Price/Book (PB) ratio is 6.26.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10.