JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 52 industry peers in the Pharmaceuticals industry. JNJ has an average financial health and profitability rating. JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JNJ was profitable.
In the past year JNJ had a positive cash flow from operations.
JNJ had positive earnings in each of the past 5 years.
JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of JNJ (11.26%) is better than 78.85% of its industry peers.
JNJ has a better Return On Equity (27.92%) than 78.85% of its industry peers.
JNJ's Return On Invested Capital of 13.67% is fine compared to the rest of the industry. JNJ outperforms 76.92% 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 14.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROIC | 13.67% |
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 24.41% is amongst the best of the industry. JNJ outperforms 86.54% of its industry peers.
JNJ's Profit Margin has declined in the last couple of years.
JNJ's Operating Margin of 26.16% is fine compared to the rest of the industry. JNJ outperforms 73.08% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 68.34%. This is comparable to the rest of the industry: JNJ outperforms 46.15% 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 | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% |
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.
JNJ has less shares outstanding than it did 5 years ago.
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
JNJ has an Altman-Z score of 4.07. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.07, JNJ is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of JNJ is 2.57, which is a good value as it means it would take JNJ, 2.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JNJ (2.57) is better than 78.85% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that JNJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, JNJ is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.33
WACC10.28%
2.3 Liquidity
A Current Ratio of 1.26 indicates that JNJ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, JNJ is doing worse than 67.31% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, JNJ is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 4.30% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
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 5.89% on average per year.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
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
JNJ is valuated correctly with a Price/Earnings ratio of 15.54.
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 27.29. JNJ is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.91, the valuation of JNJ can be described as correct.
JNJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (21.74), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.91 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 63.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 11.79 |
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.
The decent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)5.45
EPS Next 2Y6.02%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.05, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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
54.76% 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.
DP54.76%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
FRA:JNJ (7/7/2025, 7:00:00 PM)
132.72
+0.24 (+0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap319.33B
Analysts72.41
Price Target151.31 (14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend4.17
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.68%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.57%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)11
Avg EPS beat(12)3.64%
EPS beat(16)14
Avg EPS beat(16)4.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)0.53%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-6.08%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-1.64%
PT rev (3m)-5.58%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.91 | ||
| P/S | 4.21 | ||
| P/FCF | 18.45 | ||
| P/OCF | 15.16 | ||
| P/B | 4.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)8.54
EY6.43%
EPS(NY)9.54
Fwd EY7.19%
FCF(TTM)7.2
FCFY5.42%
OCF(TTM)8.75
OCFY6.6%
SpS31.55
BVpS27.59
TBVpS-1.1
PEG (NY)2.13
PEG (5Y)5.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROCE | 17.09% | ||
| ROIC | 13.67% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 72.98% | ||
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% | ||
| FCFM | 22.8% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 93.4% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.07 |
F-Score5
WACC10.28%
ROIC/WACC1.33
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
FCF growth 1Y25.69%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y21.06%
OCF growth 3Y1.2%
OCF growth 5Y0.72%