JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:JNJ • US4781601046
190.54 EUR
-0.54 (-0.28%)
Last: Jan 30, 2026, 07:00 PM
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 55 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but there are some minor concerns on its financial health. JNJ is quite expensive at the moment. 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.
- JNJ had positive earnings in each of the past 5 years.
- Of the past 5 years JNJ 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 13.03%, JNJ belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
- JNJ's Return On Equity of 31.69% is fine compared to the rest of the industry. JNJ outperforms 74.55% of its industry peers.
- JNJ has a better Return On Invested Capital (14.16%) than 69.09% of its industry peers.
| 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's Operating Margin of 27.00% is fine compared to the rest of the industry. JNJ outperforms 72.73% of its industry peers.
- JNJ's Operating Margin has improved in the last couple of years.
- JNJ has a Gross Margin (68.14%) which 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% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still creating some value.
- There is no outstanding debt for JNJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
- 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.
- JNJ has a better Debt to FCF ratio (2.34) than 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.
- 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 | 5.05 |
ROIC/WACC1.45
WACC9.77%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
- The Current ratio of JNJ (1.07) is worse than 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 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.
- JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
- 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
- JNJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.17% yearly.
- 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 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 21.12, JNJ is valued on the expensive side.
- JNJ's Price/Earnings ratio is in line with the industry average.
- JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 19.73 indicates a rather expensive valuation of JNJ.
- The rest of the industry has a similar Price/Forward Earnings ratio as JNJ.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.73 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| 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
PEG (5Y)3.46
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- JNJ has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
- JNJ's Dividend Yield is a higher than the industry average which is at 1.62.
- Compared to an average S&P500 Dividend Yield of 1.82, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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.
- The dividend of JNJ is growing, but the earnings are growing slower. 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%.