JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - FRA:JNJ - US4781601046 - Common Stock
149 EUR
-0.78 (-0.52%)
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 49 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but there are some minor concerns on its financial health. JNJ has a correct valuation and a medium 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.
Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.72%, JNJ belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
JNJ's Return On Equity of 28.88% is amongst the best of the industry. JNJ outperforms 83.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.57%, JNJ is in the better half of the industry, outperforming 65.31% 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 15.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.57% |
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 Profit Margin of 25.00%. This is amongst the best in the industry. JNJ outperforms 85.71% of its industry peers.
JNJ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.61%, JNJ is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 67.98%. This is comparable to the rest of the industry: JNJ outperforms 48.98% of its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% |
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.
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.29 indicates that JNJ is not in any danger for bankruptcy at the moment.
JNJ has a better Altman-Z score (4.29) than 67.35% of its industry peers.
JNJ has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as JNJ would need 2.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.74, JNJ is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
JNJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
JNJ has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.29 |
ROIC/WACC1.32
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.01 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ has a Current ratio of 1.01. This is in the lower half of the industry: JNJ underperforms 73.47% of its industry peers.
A Quick Ratio of 0.76 indicates that JNJ may have some problems paying its short term obligations.
JNJ has a worse Quick ratio (0.76) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for JNJ have decreased by -4.58% in the last year.
JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
3.2 Future
Based on estimates for the next years, JNJ will show a small growth in Earnings Per Share. The EPS will grow by 6.46% on average per year.
Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
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.
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 17.63, which indicates a rather expensive current valuation of JNJ.
The rest of the industry has a similar Price/Earnings ratio as JNJ.
JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.37, which indicates a correct valuation of JNJ.
The rest of the industry has a similar Price/Forward Earnings ratio as JNJ.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (22.70), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JNJ is on the same level as its industry peers.
JNJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.9 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)6.18
EPS Next 2Y7.16%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.91%.
Compared to an average industry Dividend Yield of 3.04, JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
53.34% of the earnings are spent on dividend by JNJ. 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.
DP53.34%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
FRA:JNJ (9/18/2025, 5:29:51 PM)
149
-0.78 (-0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners73.87%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap358.84B
Analysts73.55
Price Target155.31 (4.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend4.19
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.13%
Min EPS beat(2)2.3%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.3%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)14
Avg EPS beat(16)3.64%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)-3.28%
Revenue beat(16)6
Avg Revenue beat(16)-8.51%
PT rev (1m)1.17%
PT rev (3m)2.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.37 | ||
| P/S | 4.69 | ||
| P/FCF | 22.9 | ||
| P/OCF | 18.45 | ||
| P/B | 5.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.33 |
EPS(TTM)8.45
EY5.67%
EPS(NY)9.69
Fwd EY6.5%
FCF(TTM)6.51
FCFY4.37%
OCF(TTM)8.08
OCFY5.42%
SpS31.79
BVpS27.53
TBVpS-6.83
PEG (NY)1.8
PEG (5Y)6.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.67% | ||
| ROIC | 13.57% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 64.93% | ||
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% | ||
| FCFM | 20.47% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.29 |
F-Score4
WACC10.26%
ROIC/WACC1.32
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)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
EBIT growth 1Y-6.86%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.86%
EBIT Next 3Y12.85%
EBIT Next 5Y8.43%
FCF growth 1Y27.51%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y20.74%
OCF growth 3Y1.2%
OCF growth 5Y0.72%