JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. JNJ has only an average score on both its financial health and profitability. JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JNJ had positive earnings in the past year.
JNJ had a positive operating cash flow in the past year.
In the past 5 years JNJ has always been profitable.
Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
JNJ has a Return On Assets of 7.81%. This is in the better half of the industry: JNJ outperforms 70.00% of its industry peers.
JNJ has a Return On Equity of 19.68%. This is in the better half of the industry: JNJ outperforms 76.00% of its industry peers.
With a decent Return On Invested Capital value of 14.95%, JNJ is doing good in the industry, outperforming 78.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 14.89%.
| 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
JNJ has a Profit Margin of 15.84%. This is in the better half of the industry: JNJ outperforms 76.00% of its industry peers.
JNJ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.11%, JNJ belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 69.11%. This is comparable to the rest of the industry: JNJ outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of JNJ has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
Compared to 5 years ago, JNJ has less shares outstanding
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.23. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.23, JNJ is doing good in the industry, outperforming 76.00% of the companies in the same industry.
JNJ has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
JNJ has a better Debt to FCF ratio (1.85) than 86.00% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that JNJ is not too dependend on debt financing.
JNJ has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: JNJ outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.49
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.11 indicates that JNJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, JNJ is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
JNJ has a Quick Ratio of 1.11. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of JNJ (0.86) is worse than 60.00% 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 JNJ have decreased by -3.92% in the last year.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.30%.
The Revenue has been growing slightly by 1.60% on average over the past years.
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
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y6.71%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
EPS Next 5Y5.39%
Revenue Next Year2.25%
Revenue Next 2Y3.57%
Revenue Next 3Y4.06%
Revenue Next 5Y3.54%
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
The Price/Earnings ratio is 15.31, which indicates a correct valuation of JNJ.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 66.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (28.79), we can say JNJ is valued slightly cheaper.
JNJ is valuated correctly with a Price/Forward Earnings ratio of 13.76.
JNJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
JNJ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, JNJ is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JNJ does not grow enough to justify the current Price/Earnings ratio.
JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)5.37
EPS Next 2Y5.78%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, JNJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.15, JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
Dividend Growth(5Y)9.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
JNJ pays out 84.05% of its income as dividend. This is not a sustainable payout ratio.
JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.05%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
FRA:JNJ (4/25/2025, 5:28:11 PM)
135.18
-1.14 (-0.84%)
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 Cap325.76B
Analysts73.57
Price Target160.25 (18.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend4.32
Dividend Growth(5Y)9.24%
DP84.05%
Div Incr Years6
Div Non Decr Years6
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)-2.37%
PT rev (3m)-7.01%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.76 | ||
| P/S | 4.17 | ||
| P/FCF | 18.68 | ||
| P/OCF | 15.27 | ||
| P/B | 5.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.99 |
EPS(TTM)8.83
EY6.53%
EPS(NY)9.83
Fwd EY7.27%
FCF(TTM)7.24
FCFY5.35%
OCF(TTM)8.85
OCFY6.55%
SpS32.4
BVpS26.08
TBVpS-3.77
PEG (NY)2.28
PEG (5Y)5.37
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 | 4.23 |
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y6.71%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
EPS Next 5Y5.39%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.25%
Revenue Next 2Y3.57%
Revenue Next 3Y4.06%
Revenue Next 5Y3.54%
EBIT growth 1Y-2.91%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year20.06%
EBIT Next 3Y12.36%
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%