JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - FRA:JNJ - US4781601046 - Common Stock
172.56 EUR
+0.42 (+0.24%)
JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 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
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.
JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 13.03%, JNJ is doing good in the industry, outperforming 79.63% of the companies in the same industry.
JNJ has a Return On Equity of 31.69%. This is in the better half of the industry: JNJ outperforms 74.07% of its industry peers.
The Return On Invested Capital of JNJ (14.68%) is better than 74.07% 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 14.51%.
| 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 85.19% of the companies in the same industry.
In the last couple of years the Profit Margin of JNJ has declined.
With a decent Operating Margin value of 27.00%, JNJ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Operating Margin of JNJ has grown nicely.
The Gross Margin of JNJ (68.14%) is comparable to the rest of the industry.
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
JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
JNJ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
JNJ has an Altman-Z score of 4.68. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.68, JNJ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as JNJ would need 2.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.34, JNJ is doing good in 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.
JNJ has a Debt to Equity ratio (0.55) which is in line with 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 | 4.68 |
ROIC/WACC1.59
WACC9.21%
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 72.22% of its industry peers.
A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, JNJ is doing worse than 62.96% of the companies in the same industry.
| 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.
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 5.08% 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)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 7.38% 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 5.24% yearly.
EPS Next Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.38%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.26, which indicates a rather expensive current 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 (25.51), we can say JNJ is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.17, which indicates a rather expensive current valuation of JNJ.
JNJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.98. JNJ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNJ.
JNJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.58 | ||
| EV/EBITDA | 15.28 |
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)1.95
PEG (5Y)6.75
EPS Next 2Y8%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 3.01, JNJ pays a bit more dividend than its industry peers.
JNJ's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of JNJ grows each year by 9.24%, which is quite nice.
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%
EPS Next 3Y7.66%
FRA:JNJ (11/19/2025, 9:19:02 AM)
172.56
+0.42 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap415.58B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.48
Price Target176.96 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)12.93%
PT rev (3m)15.27%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 17.17 | ||
| P/S | 5.23 | ||
| P/FCF | 24.58 | ||
| P/OCF | 19.9 | ||
| P/B | 6.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.28 |
EPS(TTM)8.96
EY5.19%
EPS(NY)10.05
Fwd EY5.83%
FCF(TTM)7.02
FCFY4.07%
OCF(TTM)8.67
OCFY5.03%
SpS33.01
BVpS28.4
TBVpS-6.27
PEG (NY)1.95
PEG (5Y)6.75
Graham Number75.67
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 | 4.68 |
F-Score5
WACC9.21%
ROIC/WACC1.59
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 Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.38%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.24%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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 6 / 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%.