JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:JNJ • US4781601046
190.86 EUR
-0.22 (-0.12%)
Last: Jan 30, 2026, 03:41 PM
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 55 industry peers in the Pharmaceuticals industry. JNJ has an excellent profitability rating, 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.
- JNJ had a positive operating cash flow in the past year.
- JNJ had positive earnings in each of the past 5 years.
- JNJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.03%, JNJ belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
- The Return On Equity of JNJ (31.69%) is better than 74.55% of its industry peers.
- With a decent Return On Invested Capital value of 14.16%, JNJ is doing good in the industry, outperforming 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of JNJ (27.26%) is better than 89.09% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- JNJ has a better Operating Margin (27.00%) than 72.73% of its industry peers.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- JNJ's Gross Margin of 68.14% is in line compared to the rest of the industry. JNJ outperforms 47.27% 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 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
- JNJ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- JNJ has an Altman-Z score of 5.05. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
- JNJ has a better Altman-Z score (5.05) than 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.
- JNJ's Debt to FCF ratio of 2.34 is amongst the best of the industry. JNJ outperforms 81.82% of its industry peers.
- JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
- JNJ has a Debt to Equity ratio (0.55) which is comparable to the rest of the 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 | 5.05 |
ROIC/WACC1.45
WACC9.78%
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 67.27% 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 has a worse Quick ratio (0.80) than 61.82% 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 grown by an nice 8.11% 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 6.11% on average per year.
- Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
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
- Based on estimates for the next years, JNJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.17% on average per year.
- JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
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
- With a Price/Earnings ratio of 21.16, JNJ is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of JNJ is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.39. JNJ is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 19.76 indicates a rather expensive valuation of JNJ.
- JNJ's Price/Forward Earnings ratio is in line with the industry average.
- JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 19.76 |
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 | 28.08 | ||
| EV/EBITDA | 17.47 |
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)3.01
PEG (5Y)3.47
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.38%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.62, JNJ pays a bit more dividend than its industry peers.
- JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 2Y7.63%
EPS Next 3Y7.31%
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 7 / 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%.