JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 50 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of JNJ get a neutral evaluation. Nothing too spectacular is happening here. JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JNJ was profitable.
In the past year JNJ had a positive cash flow from operations.
In the past 5 years JNJ has always been profitable.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
JNJ has a better Return On Assets (11.26%) than 78.00% of its industry peers.
JNJ has a Return On Equity of 27.92%. This is in the better half of the industry: JNJ outperforms 78.00% of its industry peers.
JNJ has a better Return On Invested Capital (13.67%) than 76.00% of its industry peers.
JNJ had an Average Return On Invested Capital over the past 3 years of 15.41%. This is in line with the industry average of 14.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROIC | 13.67% |
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
The Profit Margin of JNJ (24.41%) is better than 86.00% 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 26.16%, JNJ is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
JNJ's Operating Margin has improved in the last couple of years.
JNJ has a Gross Margin of 68.34%. This is comparable to the rest of the industry: JNJ outperforms 46.00% of its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% |
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.
The number of shares outstanding for JNJ remains at a similar level compared to 1 year ago.
The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
Compared to 1 year ago, JNJ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.07 indicates that JNJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.07, JNJ is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Debt to FCF ratio of JNJ is 2.57, which is a good value as it means it would take JNJ, 2.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JNJ (2.57) is better than 78.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that JNJ is somewhat dependend on debt financing.
JNJ has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.33
WACC10.28%
2.3 Liquidity
JNJ has a Current Ratio of 1.26. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
JNJ's Current ratio of 1.26 is on the low side compared to the rest of the industry. JNJ is outperformed by 68.00% of its industry peers.
JNJ has a Quick 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.
With a Quick ratio value of 1.03, JNJ perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
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%.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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
Based on estimates for the next years, JNJ will show a small growth in Earnings Per Share. The EPS will grow by 5.89% on average per year.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
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
A Price/Earnings ratio of 15.51 indicates a correct valuation of JNJ.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, JNJ is valued a bit cheaper.
JNJ is valuated correctly with a Price/Forward Earnings ratio of 13.88.
JNJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNJ.
JNJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 11.79 |
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.
The decent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)5.44
EPS Next 2Y6.02%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
JNJ's Dividend Yield is a higher than the industry average which is at 3.04.
JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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
54.76% of the earnings are spent on dividend by JNJ. This is a bit on the high side, but may be sustainable.
JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.76%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
FRA:JNJ (7/4/2025, 7:00:00 PM)
132.48
-0.04 (-0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap318.76B
Analysts72.41
Price Target151.31 (14.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend4.17
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.68%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.57%
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)3.64%
EPS beat(16)14
Avg EPS beat(16)4.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)0.53%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-6.08%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-1.64%
PT rev (3m)-5.58%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 13.88 | ||
| P/S | 4.2 | ||
| P/FCF | 18.41 | ||
| P/OCF | 15.13 | ||
| P/B | 4.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)8.54
EY6.45%
EPS(NY)9.54
Fwd EY7.2%
FCF(TTM)7.2
FCFY5.43%
OCF(TTM)8.75
OCFY6.61%
SpS31.55
BVpS27.59
TBVpS-1.1
PEG (NY)2.13
PEG (5Y)5.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROCE | 17.09% | ||
| ROIC | 13.67% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 72.98% | ||
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% | ||
| FCFM | 22.8% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 93.4% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.07 |
F-Score5
WACC10.28%
ROIC/WACC1.33
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 Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
FCF growth 1Y25.69%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y21.06%
OCF growth 3Y1.2%
OCF growth 5Y0.72%