JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:JNJ - US4781601046 - Common Stock
188.4 EUR
+0.82 (+0.44%)
We assign a fundamental rating of 5 out of 10 to JNJ. JNJ was compared to 53 industry peers in the Pharmaceuticals industry. JNJ has only an average score on both its financial health and profitability. JNJ is valied quite expensively at the moment, while it does show a decent 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.
- JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.03%, JNJ is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
- With a decent Return On Equity value of 31.69%, JNJ is doing good in the industry, outperforming 73.58% of the companies in the same industry.
- JNJ has a better Return On Invested Capital (14.68%) than 71.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JNJ is in line with the industry average of 14.02%.
| 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
- JNJ's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 84.91% of its industry peers.
- 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 71.70% of its industry peers.
- JNJ's Operating Margin has improved in the last couple of years.
- JNJ has a Gross Margin of 68.14%. This is comparable to the rest of the industry: JNJ outperforms 45.28% 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% | ||
| 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.
- The number of shares outstanding for JNJ remains at a similar level compared to 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 4.92 indicates that JNJ is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.92, JNJ is doing good in the industry, outperforming 71.70% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 2.34, JNJ belongs to the best of the industry, outperforming 81.13% of the companies in the same industry.
- JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.55, JNJ perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
- 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 | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.51
WACC9.72%
2.3 Liquidity
- JNJ has a Current Ratio of 1.07. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.07, JNJ is doing worse than 66.04% of the companies in the same industry.
- JNJ has a Quick Ratio of 1.07. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of JNJ (0.80) is worse than 60.38% 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%.
- JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
- The Revenue has been growing slightly by 5.08% in the past 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
- The Earnings Per Share is expected to grow by 7.93% on average over the next years.
- Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.37%
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
- The Price/Earnings ratio is 21.10, 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 27.54, JNJ is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.79 indicates a rather expensive valuation of JNJ.
- JNJ's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNJ.
- 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 | 26.92 | ||
| EV/EBITDA | 16.67 |
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)2.14
PEG (5Y)7.4
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.53%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.72, JNJ pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
- 48.70% 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.
DP48.7%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
FRA:JNJ (1/16/2026, 12:46:38 PM)
188.4
+0.82 (+0.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-21 2026-01-21/amc
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap453.91B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75
Price Target183.86 (-2.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend4.22
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)3.56%
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 | 21.1 | ||
| Fwd PE | 18.79 | ||
| P/S | 5.73 | ||
| P/FCF | 26.92 | ||
| P/OCF | 21.8 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.67 |
EPS(TTM)8.93
EY4.74%
EPS(NY)10.03
Fwd EY5.32%
FCF(TTM)7
FCFY3.71%
OCF(TTM)8.64
OCFY4.59%
SpS32.9
BVpS28.31
TBVpS-6.25
PEG (NY)2.14
PEG (5Y)7.4
Graham Number75.42
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 | 4.92 |
F-Score5
WACC9.72%
ROIC/WACC1.51
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 5Y7.93%
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 5Y5.37%
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%.