JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:JNJ - US4781601046 - Common Stock
179.04 EUR
+1.02 (+0.57%)
Taking everything into account, JNJ scores 5 out of 10 in our fundamental rating. JNJ was compared to 55 industry peers in the Pharmaceuticals industry. While JNJ belongs to the best of the industry regarding profitability, 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
With an excellent Return On Assets value of 13.03%, JNJ belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
With a decent Return On Equity value of 31.69%, JNJ is doing good in the industry, outperforming 76.36% of the companies in the same industry.
JNJ has a Return On Invested Capital of 14.68%. This is in the better half of the industry: JNJ outperforms 74.55% of its industry peers.
JNJ had an Average Return On Invested Capital over the past 3 years of 15.41%. This is in line with the industry average of 14.90%.
| 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's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 85.45% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
The Operating Margin of JNJ (27.00%) is better than 72.73% 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 45.45% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
Compared to 5 years ago, JNJ has less shares outstanding
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.76 indicates that JNJ is not in any danger for bankruptcy at the moment.
JNJ has a better Altman-Z score (4.76) 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.
The Debt to FCF ratio of JNJ (2.34) is better 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 of 0.55. This is comparable to the rest of the industry: JNJ outperforms 58.18% of 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 | 4.76 |
ROIC/WACC1.58
WACC9.29%
2.3 Liquidity
JNJ has a Current Ratio of 1.07. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
JNJ has a worse Current ratio (1.07) than 70.91% of its industry peers.
A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
The Quick ratio of JNJ (0.80) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
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
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
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.
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 19.92, JNJ is valued on the expensive side.
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 (25.65), we can say JNJ is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.74, which indicates a rather expensive current 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 (34.45), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 17.74 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.4 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)6.99
EPS Next 2Y8%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 3.00, JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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
48.70% of the earnings are spent on dividend by JNJ. 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 (11/25/2025, 4:00:40 PM)
179.04
+1.02 (+0.57%)
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 Cap431.19B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.48
Price Target176.12 (-1.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend4.26
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)12.39%
PT rev (3m)14.1%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 17.74 | ||
| P/S | 5.4 | ||
| P/FCF | 25.4 | ||
| P/OCF | 20.57 | ||
| P/B | 6.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)8.99
EY5.02%
EPS(NY)10.09
Fwd EY5.64%
FCF(TTM)7.05
FCFY3.94%
OCF(TTM)8.71
OCFY4.86%
SpS33.14
BVpS28.51
TBVpS-6.3
PEG (NY)2.02
PEG (5Y)6.99
Graham Number75.95
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 | 4.76 |
F-Score5
WACC9.29%
ROIC/WACC1.58
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%.