JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:JNJ - US4781601046 - Common Stock
176.02 EUR
-1.78 (-1%)
Taking everything into account, JNJ scores 5 out of 10 in our fundamental rating. JNJ was compared to 55 industry peers in the Pharmaceuticals industry. JNJ has an average financial health and profitability rating. While showing a medium growth rate, JNJ is valued expensive at the moment.
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.
JNJ had positive earnings in each of the past 5 years.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
JNJ's Return On Assets of 13.03% is fine compared to the rest of the industry. JNJ outperforms 80.00% of its industry peers.
The Return On Equity of JNJ (31.69%) is better than 74.55% of its industry peers.
JNJ's Return On Invested Capital of 14.68% is fine compared to the rest of the industry. JNJ outperforms 74.55% 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 13.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.68% |
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
Looking at the Profit Margin, with a value of 27.26%, JNJ belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Profit Margin of JNJ has declined.
JNJ has a Operating Margin of 27.00%. This is in the better half of the industry: JNJ outperforms 72.73% of its industry peers.
JNJ's Operating Margin has improved in the last couple of years.
JNJ has a Gross Margin (68.14%) which is in line with its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still 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 4.78 indicates that JNJ is not in any danger for bankruptcy at the moment.
JNJ's Altman-Z score of 4.78 is fine compared to the rest of the industry. JNJ outperforms 72.73% of its industry peers.
The Debt to FCF ratio of JNJ is 2.34, which is a good value as it means it would take JNJ, 2.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JNJ (2.34) is better than 76.36% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
JNJ's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. JNJ outperforms 52.73% of its industry peers.
Even though the debt/equity ratio score it not favorable for JNJ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.49
WACC9.84%
2.3 Liquidity
A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ's Current ratio of 1.07 is on the low side compared to the rest of the industry. JNJ is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
JNJ has a worse Quick ratio (0.80) than 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
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.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 5.08% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
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 7.68% on average per year.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
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
A Price/Earnings ratio of 19.80 indicates a rather expensive valuation of JNJ.
The rest of the industry has a similar Price/Earnings ratio as JNJ.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (27.19), we can say JNJ is valued slightly cheaper.
JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 17.63.
JNJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.88. JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.63 |
4.2 Price Multiples
JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as JNJ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.27 | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)6.94
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, JNJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.60, JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 48.70% of its income as dividend. 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.
DP48.7%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
FRA:JNJ (1/9/2026, 7:00:00 PM)
176.02
-1.78 (-1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap424.08B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target183.86 (4.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend4.18
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years6
Div Non Decr Years6
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)4.4%
PT rev (3m)17.33%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.63 | ||
| P/S | 5.37 | ||
| P/FCF | 25.27 | ||
| P/OCF | 20.46 | ||
| P/B | 6.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)8.89
EY5.05%
EPS(NY)9.98
Fwd EY5.67%
FCF(TTM)6.97
FCFY3.96%
OCF(TTM)8.6
OCFY4.89%
SpS32.76
BVpS28.18
TBVpS-6.22
PEG (NY)2.01
PEG (5Y)6.94
Graham Number75.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.68% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 69.32% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
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%
ROICexgc growth 3Y1.2%
ROICexgc 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 Turnover0.48
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 | 4.78 |
F-Score5
WACC9.84%
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)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.55%
EBIT Next 3Y13.35%
EBIT Next 5Y8.85%
FCF growth 1Y24.53%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y19.36%
OCF growth 3Y1.2%
OCF growth 5Y0.72%
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 6 / 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 5 / 10 and the dividend payout ratio is 48.7%.