JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 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
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.
JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JNJ has a better Return On Assets (11.26%) than 80.00% of its industry peers.
JNJ's Return On Equity of 27.92% is fine compared to the rest of the industry. JNJ outperforms 80.00% of its industry peers.
JNJ's Return On Invested Capital of 13.67% is fine compared to the rest of the industry. JNJ outperforms 76.00% 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 14.77%.
| 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
With an excellent Profit Margin value of 24.41%, JNJ belongs to the best of the industry, outperforming 88.00% 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 26.16%. This is in the better half of the industry: JNJ outperforms 74.00% of its industry peers.
JNJ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 68.34%, JNJ is in line with its industry, outperforming 48.00% of the companies in the same industry.
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
JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.16. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.16, JNJ is doing good in the industry, outperforming 68.00% of the companies in the same industry.
JNJ has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as JNJ would need 2.57 years to pay back of all of its debts.
JNJ has a better Debt to FCF ratio (2.57) than 80.00% of its industry peers.
JNJ has a Debt/Equity ratio of 0.63. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of JNJ (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.32
WACC10.39%
2.3 Liquidity
JNJ has a Current Ratio of 1.26. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
JNJ's Current ratio of 1.26 is on the low side compared to the rest of the industry. JNJ is outperformed by 68.00% of its industry peers.
A Quick Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
The Quick ratio of JNJ (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for JNJ have decreased by -3.92% in the last year.
Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
The Revenue has been growing slightly by 4.30% in the past 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
The Earnings Per Share is expected to grow by 5.89% on average over the next years.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
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.
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
JNJ is valuated correctly with a Price/Earnings ratio of 16.27.
JNJ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.50, JNJ is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.52, which indicates a correct valuation of JNJ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (36.44), we can say JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, JNJ is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.32 | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)5.71
EPS Next 2Y6.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.19%.
Compared to an average industry Dividend Yield of 3.00, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 2Y6.17%
EPS Next 3Y6.44%
FRA:JNJ (7/18/2025, 7:00:00 PM)
141.26
+0.74 (+0.53%)
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 Cap339.88B
Analysts72.41
Price Target149.16 (5.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend4.22
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)-0.49%
PT rev (3m)-5.58%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.52 | ||
| P/S | 4.41 | ||
| P/FCF | 19.32 | ||
| P/OCF | 15.88 | ||
| P/B | 5.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.33 |
EPS(TTM)8.68
EY6.14%
EPS(NY)9.73
Fwd EY6.88%
FCF(TTM)7.31
FCFY5.18%
OCF(TTM)8.9
OCFY6.3%
SpS32.06
BVpS28.04
TBVpS-1.12
PEG (NY)2.18
PEG (5Y)5.71
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 | 4.16 |
F-Score5
WACC10.39%
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
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%