JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:JNJ - US4781601046 - Common Stock
175.1 EUR
+0.9 (+0.52%)
Taking everything into account, JNJ scores 5 out of 10 in our fundamental rating. JNJ was compared to 54 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but there are some minor concerns on its financial health. JNJ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
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.
Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of JNJ (13.03%) is better than 81.48% of its industry peers.
JNJ has a better Return On Equity (31.69%) than 74.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.68%, JNJ is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JNJ is in line with the industry average of 13.89%.
| 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 has a better Profit Margin (27.26%) than 87.04% 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 74.07% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 68.14%. This is comparable to the rest of the industry: JNJ outperforms 48.15% 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.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.72. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
JNJ's Altman-Z score of 4.72 is fine compared to the rest of the industry. JNJ outperforms 74.07% 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.
Looking at the Debt to FCF ratio, with a value of 2.34, JNJ is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of JNJ (0.55) is comparable to the rest of the industry.
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 | 4.72 |
ROIC/WACC1.53
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ has a Current ratio of 1.07. This is in the lower half of the industry: JNJ underperforms 72.22% of its industry peers.
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.
JNJ's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% over the past year.
JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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 7.68% on average over the next years.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y9.83%
EPS Next 2Y7.97%
EPS Next 3Y7.73%
EPS Next 5Y7.68%
Revenue Next Year5.6%
Revenue Next 2Y5.44%
Revenue Next 3Y5.28%
Revenue Next 5Y5.29%
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
JNJ is valuated rather expensively with a Price/Earnings ratio of 19.63.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ is on the same level as its industry peers.
JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.50 indicates a rather expensive valuation of JNJ.
JNJ's Price/Forward Earnings is on the same level as the industry average.
JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
JNJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 15.53 |
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
PEG (5Y)6.88
EPS Next 2Y7.97%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, JNJ has a reasonable but not impressive dividend return.
JNJ's Dividend Yield is a higher than the industry average which is at 2.90.
JNJ's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 2Y7.97%
EPS Next 3Y7.73%
FRA:JNJ (12/10/2025, 5:28:38 PM)
175.1
+0.9 (+0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap421.87B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target177.54 (1.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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)1.22%
PT rev (3m)15.02%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.5 | ||
| P/S | 5.33 | ||
| P/FCF | 25.05 | ||
| P/OCF | 20.28 | ||
| P/B | 6.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.53 |
EPS(TTM)8.92
EY5.09%
EPS(NY)10.01
Fwd EY5.72%
FCF(TTM)6.99
FCFY3.99%
OCF(TTM)8.63
OCFY4.93%
SpS32.87
BVpS28.28
TBVpS-6.24
PEG (NY)2
PEG (5Y)6.88
Graham Number75.33
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 | 4.72 |
F-Score5
WACC9.62%
ROIC/WACC1.53
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 Y9.83%
EPS Next 2Y7.97%
EPS Next 3Y7.73%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.6%
Revenue Next 2Y5.44%
Revenue Next 3Y5.28%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.64%
EBIT Next 3Y13.37%
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 for JNJ 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 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.
How sustainable is the dividend of JOHNSON & JOHNSON (JNJ.DE) stock?
The dividend rating of JOHNSON & JOHNSON (JNJ.DE) is 4 / 10 and the dividend payout ratio is 48.7%.