JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ • US4781601046
209.4 EUR
+0.5 (+0.24%)
Last: Feb 24, 2026, 04:32 PM
JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Pharmaceuticals industry. While JNJ has a great profitability rating, there are some minor concerns on its financial health. JNJ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- JNJ had positive earnings in the past year.
- In the past year JNJ had a positive cash flow from operations.
- JNJ had positive earnings in each of the past 5 years.
- Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
- JNJ has a Return On Assets of 13.46%. This is amongst the best in the industry. JNJ outperforms 86.54% of its industry peers.
- Looking at the Return On Equity, with a value of 32.87%, JNJ is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
- JNJ has a Return On Invested Capital of 14.37%. This is in the better half of the industry: JNJ outperforms 71.15% of its industry peers.
- JNJ had an Average Return On Invested Capital over the past 3 years of 16.34%. This is above the industry average of 14.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 32.87% | ||
| ROIC | 14.37% |
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
1.3 Margins
- JNJ's Profit Margin of 28.46% is amongst the best of the industry. JNJ outperforms 90.38% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- JNJ has a Operating Margin of 27.78%. This is in the better half of the industry: JNJ outperforms 73.08% of its industry peers.
- JNJ's Operating Margin has improved in the last couple of years.
- JNJ has a Gross Margin (67.92%) which is comparable to the rest of the industry.
- JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.78% | ||
| PM (TTM) | 28.46% | ||
| GM | 67.92% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
- JNJ has about the same amout of shares outstanding than it did 1 year ago.
- JNJ has less shares outstanding than it did 5 years ago.
- JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.13 indicates that JNJ is not in any danger for bankruptcy at the moment.
- JNJ has a better Altman-Z score (5.13) than 75.00% of its industry peers.
- The Debt to FCF ratio of JNJ is 2.43, which is a good value as it means it would take JNJ, 2.43 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.43, JNJ is doing good in the industry, outperforming 78.85% of the companies in the same industry.
- A Debt/Equity ratio of 0.56 indicates that JNJ is somewhat dependend on debt financing.
- JNJ has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: JNJ outperforms 57.69% of its industry peers.
- Although JNJ 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 | 0.56 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.13 |
ROIC/WACC1.52
WACC9.48%
2.3 Liquidity
- JNJ has a Current Ratio of 1.03. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
- JNJ has a Current ratio of 1.03. This is in the lower half of the industry: JNJ underperforms 78.85% of its industry peers.
- A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
- The Quick ratio of JNJ (0.77) is worse than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.11% over the past year.
- The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
- Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
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
- Based on estimates for the next years, JNJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.75% on average per year.
- Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.75%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
Revenue Next 5Y6.02%
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
- JNJ is valuated rather expensively with a Price/Earnings ratio of 22.86.
- JNJ's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (26.64), we can say JNJ is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.18, which indicates a rather expensive current valuation of JNJ.
- JNJ's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 27.75. JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
- JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.18 | ||
| EV/EBITDA | 17.93 |
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)2.9
PEG (5Y)3.74
EPS Next 2Y8.2%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.11%, JNJ has a reasonable but not impressive dividend return.
- JNJ's Dividend Yield is comparable with the industry average which is at 1.89.
- JNJ's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
- On average, the dividend of JNJ grows each year by 7.68%, which is quite nice.
Dividend Growth(5Y)7.68%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 46.19% of the earnings are spent on dividend by JNJ. This is a bit on the high side, but may be sustainable.
- The dividend of JNJ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
FRA:JNJ (2/24/2026, 4:32:49 PM)
209.4
+0.5 (+0.24%)
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 Cap504.51B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target197.22 (-5.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend4.37
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-0.13%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.13%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.84%
EPS beat(12)10
Avg EPS beat(12)3.23%
EPS beat(16)14
Avg EPS beat(16)3.09%
Revenue beat(2)2
Avg Revenue beat(2)0.35%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.67%
Revenue beat(4)4
Avg Revenue beat(4)1.04%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-4.44%
PT rev (1m)7.91%
PT rev (3m)11.98%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 21.18 | ||
| P/S | 6.31 | ||
| P/FCF | 30.18 | ||
| P/OCF | 24.24 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.93 |
EPS(TTM)9.16
EY4.37%
EPS(NY)9.89
Fwd EY4.72%
FCF(TTM)6.94
FCFY3.31%
OCF(TTM)8.64
OCFY4.13%
SpS33.18
BVpS28.72
TBVpS-6.21
PEG (NY)2.9
PEG (5Y)3.74
Graham Number76.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 32.87% | ||
| ROCE | 18.03% | ||
| ROIC | 14.37% | ||
| ROICexc | 16.57% | ||
| ROICexgc | 67.45% | ||
| OM | 27.78% | ||
| PM (TTM) | 28.46% | ||
| GM | 67.92% | ||
| FCFM | 20.91% |
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
ROICexc(3y)19.6%
ROICexc(5y)18.23%
ROICexgc(3y)74.51%
ROICexgc(5y)73.44%
ROCE(3y)20.24%
ROCE(5y)18.7%
ROICexgc growth 3Y3.9%
ROICexgc growth 5Y-2.01%
ROICexc growth 3Y8.52%
ROICexc growth 5Y5.62%
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 64.4% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 72.86% | ||
| Profit Quality | 73.49% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 5.13 |
F-Score4
WACC9.48%
ROIC/WACC1.52
Cap/Depr(3y)61.79%
Cap/Depr(5y)58.46%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.02%
Profit Quality(3y)88.82%
Profit Quality(5y)91.38%
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
Revenue Next 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y8.55%
FCF growth 1Y-0.73%
FCF growth 3Y4.65%
FCF growth 5Y-0.49%
OCF growth 1Y1.09%
OCF growth 3Y4.99%
OCF growth 5Y0.83%
JOHNSON & JOHNSON / JNJ.DE FAQ
Can you provide the ChartMill fundamental rating for JOHNSON & JOHNSON?
ChartMill assigns a fundamental rating of 5 / 10 to JNJ.DE.
What is the valuation status of JOHNSON & JOHNSON (JNJ.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to JOHNSON & JOHNSON (JNJ.DE). This can be considered as Overvalued.
What is the profitability of JNJ stock?
JOHNSON & JOHNSON (JNJ.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for JNJ stock?
The financial health rating of JOHNSON & JOHNSON (JNJ.DE) is 5 / 10.
Is the dividend of JOHNSON & JOHNSON sustainable?
The dividend rating of JOHNSON & JOHNSON (JNJ.DE) is 4 / 10 and the dividend payout ratio is 46.19%.