JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe - FRA:JNJ - US4781601046 - Common Stock
163.81 EUR
-0.01 (-0.01%)
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 52 industry peers in the Pharmaceuticals industry. While JNJ has a great profitability rating, 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
In the past year JNJ was profitable.
JNJ had a positive operating cash flow in the past year.
JNJ had positive earnings in each of the past 5 years.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
JNJ has a better Return On Assets (11.72%) than 80.77% of its industry peers.
JNJ's Return On Equity of 28.88% is fine compared to the rest of the industry. JNJ outperforms 76.92% of its industry peers.
JNJ has a Return On Invested Capital of 13.62%. This is in the better half of the industry: JNJ outperforms 63.46% 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 15.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.62% |
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
With an excellent Profit Margin value of 25.00%, JNJ belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
In the last couple of years the Profit Margin of JNJ has declined.
JNJ has a Operating Margin of 25.69%. This is in the better half of the industry: JNJ outperforms 67.31% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
With a Gross Margin value of 67.97%, JNJ perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% |
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.
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.46. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of JNJ (4.46) is better than 61.54% of its industry peers.
The Debt to FCF ratio of JNJ is 2.74, which is a good value as it means it would take JNJ, 2.74 years of fcf income to pay off all of its debts.
JNJ has a Debt to FCF ratio of 2.74. This is in the better half of the industry: JNJ outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that JNJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, JNJ perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.48
WACC9.18%
2.3 Liquidity
JNJ has a Current Ratio of 1.01. 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 (1.01) than 69.23% of its industry peers.
A Quick Ratio of 0.76 indicates that JNJ may have some problems paying its short term obligations.
The Quick ratio of JNJ (0.76) is worse than 67.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
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%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
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
With a Price/Earnings ratio of 18.32, JNJ is valued on the expensive side.
JNJ's Price/Earnings is on the same level as the industry average.
JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.32, the valuation of JNJ can be described as correct.
JNJ's Price/Forward Earnings ratio is in line with the industry average.
JNJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.32 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.7 | ||
| EV/EBITDA | 15.31 |
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)1.85
PEG (5Y)6.43
EPS Next 2Y8.02%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 53.34% 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.
DP53.34%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
FRA:JNJ (10/27/2025, 10:50:45 AM)
163.81
-0.01 (-0.01%)
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 Cap394.51B
Revenue(TTM)92.15B
Net Income(TTM)22.66B
Analysts74.84
Price Target156.7 (-4.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend4.23
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)0.9%
PT rev (3m)5.06%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.32 | ||
| P/S | 5.05 | ||
| P/FCF | 24.7 | ||
| P/OCF | 19.89 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.31 |
EPS(TTM)8.94
EY5.46%
EPS(NY)10.04
Fwd EY6.13%
FCF(TTM)6.63
FCFY4.05%
OCF(TTM)8.23
OCFY5.03%
SpS32.41
BVpS28.06
TBVpS-6.97
PEG (NY)1.85
PEG (5Y)6.43
Graham Number75.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.73% | ||
| ROIC | 13.62% | ||
| ROICexc | 15.61% | ||
| ROICexgc | 65.14% | ||
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% | ||
| 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%
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.91% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.46 |
F-Score4
WACC9.18%
ROIC/WACC1.48
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 Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
EBIT growth 1Y-6.56%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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%
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 53.34%.