JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1JNJ • US4781601046
198.1 EUR
+4.08 (+2.1%)
Last: Feb 3, 2026, 07:00 PM
Taking everything into account, 1JNJ scores 5 out of 10 in our fundamental rating. 1JNJ was compared to 55 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of 1JNJ get a neutral evaluation. Nothing too spectacular is happening here. 1JNJ is quite expensive at the moment. It does show a decent growth rate.
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.
- Of the past 5 years 1JNJ 4 years had a positive operating cash flow.
1.2 Ratios
- 1JNJ's Return On Assets of 13.03% is fine compared to the rest of the industry. 1JNJ outperforms 80.00% of its industry peers.
- 1JNJ has a Return On Equity of 31.69%. This is in the better half of the industry: 1JNJ outperforms 72.73% of its industry peers.
- 1JNJ's Return On Invested Capital of 14.16% is fine compared to the rest of the industry. 1JNJ outperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1JNJ's Profit Margin of 27.26% is amongst the best of the industry. 1JNJ outperforms 85.45% of its industry peers.
- 1JNJ's Profit Margin has improved in the last couple of years.
- 1JNJ has a Operating Margin of 27.00%. This is in the better half of the industry: 1JNJ outperforms 70.91% of its industry peers.
- In the last couple of years the Operating Margin of 1JNJ has grown nicely.
- 1JNJ's Gross Margin of 68.14% is in line compared to the rest of the industry. 1JNJ outperforms 41.82% 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 | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 5.12 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
- 1JNJ's Altman-Z score of 5.12 is fine compared to the rest of the industry. 1JNJ outperforms 69.09% 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.
- 1JNJ has a better Debt to FCF ratio (2.34) than 83.64% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that 1JNJ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.55, 1JNJ is in line with its industry, outperforming 58.18% of the companies in the same industry.
- 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 | 5.12 |
ROIC/WACC1.43
WACC9.88%
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.
- 1JNJ's Current ratio of 1.07 is on the low side compared to the rest of the industry. 1JNJ is outperformed by 69.09% 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.
- Looking at the Quick ratio, with a value of 0.80, 1JNJ is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.11% over the past year.
- 1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
- The Revenue has been growing slightly by 6.05% in the past year.
- The Revenue has been growing slightly by 2.67% on average over the past years.
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
3.2 Future
- The Earnings Per Share is expected to grow by 8.17% on average over the next years. This is quite good.
- 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 Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
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.
- 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
- With a Price/Earnings ratio of 21.65, 1JNJ is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of 1JNJ is on the same level as its industry peers.
- 1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
- A Price/Forward Earnings ratio of 20.22 indicates a rather expensive valuation of 1JNJ.
- 1JNJ's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of 1JNJ to the average of the S&P500 Index (25.51), we can say 1JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 20.22 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.74 | ||
| EV/EBITDA | 17.85 |
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)3.08
PEG (5Y)3.55
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- 1JNJ has a Yearly Dividend Yield of 2.29%.
- Compared to an average industry Dividend Yield of 1.95, 1JNJ has a dividend in line with its industry peers.
- 1JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 2Y7.63%
EPS Next 3Y7.31%
BIT:1JNJ (2/3/2026, 7:00:00 PM)
198.1
+4.08 (+2.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21 2026-01-21/bmo
Earnings (Next)04-14 2026-04-14
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap477.28B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target181.8 (-8.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend4.12
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)-1.02%
PT rev (3m)15.82%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 20.22 | ||
| P/S | 6.11 | ||
| P/FCF | 28.74 | ||
| P/OCF | 23.27 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)9.15
EY4.62%
EPS(NY)9.8
Fwd EY4.94%
FCF(TTM)6.89
FCFY3.48%
OCF(TTM)8.51
OCFY4.3%
SpS32.41
BVpS27.88
TBVpS-6.16
PEG (NY)3.08
PEG (5Y)3.55
Graham Number75.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.16% | ||
| ROICexc | 16.21% | ||
| ROICexgc | 66.83% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
F-Score4
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 | 5.12 |
F-Score4
WACC9.88%
ROIC/WACC1.43
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y7.6%
FCF growth 1Y-5.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.75%
OCF growth 3YN/A
OCF growth 5YN/A
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 21.65 and the Price/Book (PB) ratio is 7.1.
What is the financial health of JOHNSON & JOHNSON (1JNJ.MI) stock?
The financial health rating of JOHNSON & JOHNSON (1JNJ.MI) is 5 / 10.