JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to JNJ. JNJ was compared to 52 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year JNJ was profitable.
JNJ had a positive operating cash flow in the past year.
Each year in the past 5 years JNJ has been profitable.
Of the past 5 years JNJ 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.24%, JNJ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
JNJ has a Return On Equity of 20.93%. This is in the better half of the industry: JNJ outperforms 77.08% of its industry peers.
JNJ's Return On Invested Capital of 16.25% is amongst the best of the industry. JNJ outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROIC | 16.25% |
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
JNJ has a better Profit Margin (16.74%) than 77.08% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
The Operating Margin of JNJ (27.57%) is better than 81.25% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 69.16%. This is comparable to the rest of the industry: JNJ outperforms 45.83% 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 | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% |
OM growth 3Y0.85%
OM growth 5Y3.47%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.31%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still creating some value.
There is no outstanding debt for JNJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.20 indicates that JNJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.20, JNJ is doing good in the industry, outperforming 70.83% of the companies in the same industry.
The Debt to FCF ratio of JNJ is 1.72, which is an excellent value as it means it would take JNJ, only 1.72 years of fcf income to pay off all of its debts.
JNJ's Debt to FCF ratio of 1.72 is amongst the best of the industry. JNJ outperforms 81.25% of its industry peers.
JNJ has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
JNJ has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: JNJ outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.64
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ's Current ratio of 1.03 is on the low side compared to the rest of the industry. JNJ is outperformed by 81.25% of its industry peers.
JNJ has a Quick Ratio of 1.03. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
JNJ has a Quick ratio of 0.79. This is in the lower half of the industry: JNJ underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for JNJ have decreased by -4.22% in the last year.
Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
The Revenue has been growing slightly by 4.30% in the past year.
Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
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 5.24% on average per year.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.36% yearly.
EPS Next Y6.61%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
EPS Next 5Y5.24%
Revenue Next Year2.48%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y3.36%
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
JNJ is valuated correctly with a Price/Earnings ratio of 15.29.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 72.92% of the companies listed in the same industry.
JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 14.35, the valuation of JNJ can be described as correct.
JNJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. JNJ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than JNJ, based on the Enterprise Value to EBITDA ratio.
JNJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 11.71 |
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)2.31
PEG (5Y)5.36
EPS Next 2Y6.04%
EPS Next 3Y6.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, JNJ has a reasonable but not impressive dividend return.
JNJ's Dividend Yield is a higher than the industry average which is at 2.69.
Compared to an average S&P500 Dividend Yield of 2.28, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of JNJ is nicely growing with an annual growth rate of 9.96%!
Dividend Growth(5Y)9.96%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
JNJ pays out 79.71% 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.
DP79.71%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
JOHNSON & JOHNSON
FRA:JNJ (2/5/2025, 3:07:46 PM)
147.9
+0.4 (+0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap356.09B
Analysts74.67
Price Target163.27 (10.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend4.46
Dividend Growth(5Y)9.96%
DP79.71%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.83%
Min EPS beat(2)3.37%
Max EPS beat(2)8.28%
EPS beat(4)3
Avg EPS beat(4)3.2%
Min EPS beat(4)-0.59%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)3.31%
EPS beat(16)14
Avg EPS beat(16)4.28%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)0.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.82%
Revenue beat(8)4
Avg Revenue beat(8)-3.38%
Revenue beat(12)4
Avg Revenue beat(12)-11.37%
Revenue beat(16)7
Avg Revenue beat(16)-8.24%
PT rev (1m)-5.26%
PT rev (3m)-0.22%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 14.35 | ||
| P/S | 4.2 | ||
| P/FCF | 17.74 | ||
| P/OCF | 14.64 | ||
| P/B | 5.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.71 |
EPS(TTM)9.67
EY6.54%
EPS(NY)10.31
Fwd EY6.97%
FCF(TTM)8.34
FCFY5.64%
OCF(TTM)10.11
OCFY6.83%
SpS35.24
BVpS28.2
TBVpS-5.68
PEG (NY)2.31
PEG (5Y)5.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROCE | 19.11% | ||
| ROIC | 16.25% | ||
| ROICexc | 19.3% | ||
| ROICexgc | 87.24% | ||
| OM | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% | ||
| FCFM | 23.66% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.85%
OM growth 5Y3.47%
PM growth 3Y-15.79%
PM growth 5Y-2.98%
GM growth 3Y-0.31%
GM growth 5Y0.91%
F-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 60.4% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.92% | ||
| Profit Quality | 141.28% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 4.2 |
F-Score4
WACC9.9%
ROIC/WACC1.64
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)-4.22%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-10.92%
EPS Next Y6.61%
EPS Next 2Y6.04%
EPS Next 3Y6.22%
EPS Next 5Y5.24%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.26%
Revenue Next Year2.48%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y3.36%
EBIT growth 1Y-0.84%
EBIT growth 3Y4.99%
EBIT growth 5Y5.12%
EBIT Next Year23.23%
EBIT Next 3Y11.19%
EBIT Next 5Y7.4%
FCF growth 1Y31.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.01%
OCF growth 3YN/A
OCF growth 5YN/A