JOHNSON & JOHNSON (JNJ.DE) Fundamental Analysis & Valuation
FRA:JNJ • US4781601046
Current stock price
204.1 EUR
-3.35 (-1.61%)
Last:
This JNJ.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. JNJ.DE Profitability Analysis
1.1 Basic Checks
- JNJ had positive earnings in the past year.
- 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's Return On Assets of 13.46% is amongst the best of the industry. JNJ outperforms 90.20% of its industry peers.
- With an excellent Return On Equity value of 32.87%, JNJ belongs to the best of the industry, outperforming 80.39% 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 76.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 17.40%.
| 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 has a better Profit Margin (28.46%) than 94.12% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- Looking at the Operating Margin, with a value of 27.78%, JNJ is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
- JNJ's Operating Margin has improved in the last couple of years.
- The Gross Margin of JNJ (67.92%) 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. JNJ.DE Health Analysis
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.
- Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
- JNJ has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, JNJ has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.04 indicates that JNJ is not in any danger for bankruptcy at the moment.
- JNJ has a Altman-Z score of 5.04. This is in the better half of the industry: JNJ outperforms 78.43% of its industry peers.
- JNJ has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as JNJ would need 2.43 years to pay back of all of its debts.
- The Debt to FCF ratio of JNJ (2.43) is better than 74.51% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that JNJ is somewhat dependend on debt financing.
- JNJ has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
- Although JNJ's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 5.04 |
ROIC/WACC1.53
WACC9.37%
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 68.63% 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's Quick ratio of 0.77 is on the low side compared to the rest of the industry. JNJ is outperformed by 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.77 |
3. JNJ.DE Growth Analysis
3.1 Past
- JNJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
- The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
- The Revenue has been growing slightly by 6.05% in the past year.
- Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
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
- JNJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
- The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y8.75%
Revenue Next Year7.24%
Revenue Next 2Y6.55%
Revenue Next 3Y6.35%
Revenue Next 5Y6.02%
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. JNJ.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.14, which indicates a rather expensive current valuation of JNJ.
- JNJ's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.78, JNJ is valued at the same level.
- JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 20.51.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 23.54. JNJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNJ.
- 62.75% of the companies in the same industry are cheaper than JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.23 | ||
| EV/EBITDA | 17.41 |
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)2.8
PEG (5Y)3.63
EPS Next 2Y8.38%
EPS Next 3Y8.73%
5. JNJ.DE Dividend Analysis
5.1 Amount
- JNJ has a Yearly Dividend Yield of 2.15%.
- JNJ's Dividend Yield is a higher than the industry average which is at 1.94.
- Compared to an average S&P500 Dividend Yield of 1.83, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
- JNJ pays out 46.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
- JNJ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
JNJ.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:JNJ (4/10/2026, 7:00:00 PM)
204.1
-3.35 (-1.61%)
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/bmo
Inst Owners75.61%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap491.60B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts76.25
Price Target207.36 (1.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend4.39
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years7
Div Non Decr Years7
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)3.26%
PT rev (3m)12.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 20.51 | ||
| P/S | 6.11 | ||
| P/FCF | 29.23 | ||
| P/OCF | 23.47 | ||
| P/B | 7.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.41 |
EPS(TTM)9.22
EY4.52%
EPS(NY)9.95
Fwd EY4.88%
FCF(TTM)6.98
FCFY3.42%
OCF(TTM)8.7
OCFY4.26%
SpS33.39
BVpS28.91
TBVpS-6.25
PEG (NY)2.8
PEG (5Y)3.63
Graham Number77.44
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 | 5.04 |
F-Score4
WACC9.37%
ROIC/WACC1.53
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 Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.24%
Revenue Next 2Y6.55%
Revenue Next 3Y6.35%
Revenue Next 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.27%
EBIT Next 3Y11.78%
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 Fundamental Analysis 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 2 / 10 to JOHNSON & JOHNSON (JNJ.DE). This can be considered as Overvalued.
How profitable is JOHNSON & JOHNSON (JNJ.DE) stock?
JOHNSON & JOHNSON (JNJ.DE) has a profitability rating of 7 / 10.
What is the financial health of JOHNSON & JOHNSON (JNJ.DE) stock?
The financial health rating of JOHNSON & JOHNSON (JNJ.DE) is 5 / 10.
Can you provide the expected EPS growth for JNJ stock?
The Earnings per Share (EPS) of JOHNSON & JOHNSON (JNJ.DE) is expected to grow by 7.91% in the next year.