JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNJ - US4781601046 - Common Stock
218.66 USD
-0.91 (-0.41%)
218.75 USD
+0.09 (+0.04%)
Overall JNJ gets a fundamental rating of 6 out of 10. We evaluated JNJ against 191 industry peers in the Pharmaceuticals industry. While JNJ has a great profitability rating, there are some minor concerns on its financial health. JNJ has a decent growth rate and is not valued too expensively. JNJ also has an excellent dividend rating. This makes JNJ very considerable for dividend investing!
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.
- Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of JNJ (13.03%) is better than 93.19% of its industry peers.
- JNJ's Return On Equity of 31.69% is amongst the best of the industry. JNJ outperforms 93.72% of its industry peers.
- JNJ's Return On Invested Capital of 14.68% is amongst the best of the industry. JNJ outperforms 94.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JNJ is above the industry average of 12.84%.
| 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 has a Profit Margin of 27.26%. This is amongst the best in the industry. JNJ outperforms 92.67% of its industry peers.
- JNJ's Profit Margin has declined in the last couple of years.
- JNJ has a better Operating Margin (27.00%) than 92.67% of its industry peers.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- JNJ has a better Gross Margin (68.14%) than 76.96% 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
- 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.
- JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
- JNJ has an Altman-Z score of 4.93. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
- JNJ has a better Altman-Z score (4.93) than 73.82% of its industry peers.
- JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as JNJ would need 2.34 years to pay back of all of its debts.
- JNJ has a better Debt to FCF ratio (2.34) than 93.19% 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.
- With a Debt to Equity ratio value of 0.55, JNJ is not doing good in the industry: 65.97% of the companies in the same industry are doing better.
- Although JNJ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.52
WACC9.69%
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's Current ratio of 1.07 is on the low side compared to the rest of the industry. JNJ is outperformed by 82.72% of its industry peers.
- A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
- JNJ has a Quick ratio of 0.80. This is amonst the worse of the industry: JNJ underperforms 82.20% of its industry peers.
- The current and quick ratio evaluation for JNJ is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.37% over the past 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 5.08% in the last 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 7.93% on average over the next years.
- Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue Next Year5.63%
Revenue Next 2Y5.56%
Revenue Next 3Y5.35%
Revenue Next 5Y5.37%
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.
- 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
- Based on the Price/Earnings ratio of 21.07, the valuation of JNJ can be described as rather expensive.
- 80.10% of the companies in the same industry are more expensive than JNJ, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, JNJ is valued a bit cheaper.
- JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 18.76.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 78.01% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
- JNJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JNJ is cheaper than 81.15% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 82.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.88 | ||
| EV/EBITDA | 16.72 |
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 excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)7.39
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.37%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.40, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.19% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
- On average, the dividend of JNJ grows each year by 9.24%, which is quite nice.
- JNJ has paid a dividend for at least 10 years, which is a reliable track record.
- JNJ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.24%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- JNJ pays out 48.70% of its income as dividend. 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.
DP48.7%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
218.66
-0.91 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-21 2026-01-21/bmo
Inst Owners75.09%
Inst Owner Change-0.09%
Ins Owners0.03%
Ins Owner Change0.12%
Market Cap526.82B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75
Price Target215.29 (-1.54%)
Short Float %1%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24 2026-02-24 (1.3)
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)4.15%
PT rev (3m)17.09%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 18.76 | ||
| P/S | 5.72 | ||
| P/FCF | 26.88 | ||
| P/OCF | 21.77 | ||
| P/B | 6.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.72 |
EPS(TTM)10.38
EY4.75%
EPS(NY)11.66
Fwd EY5.33%
FCF(TTM)8.13
FCFY3.72%
OCF(TTM)10.05
OCFY4.59%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.14
PEG (5Y)7.39
Graham Number87.66
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 | 4.93 |
F-Score5
WACC9.69%
ROIC/WACC1.52
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 Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.93%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.63%
Revenue Next 2Y5.56%
Revenue Next 3Y5.35%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.55%
EBIT Next 3Y13.35%
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 FAQ
Can you provide the ChartMill fundamental rating for JOHNSON & JOHNSON?
ChartMill assigns a fundamental rating of 6 / 10 to JNJ.
What is the valuation status of JOHNSON & JOHNSON (JNJ) stock?
ChartMill assigns a valuation rating of 6 / 10 to JOHNSON & JOHNSON (JNJ). This can be considered as Fairly Valued.
What is the profitability of JNJ stock?
JOHNSON & JOHNSON (JNJ) has a profitability rating of 8 / 10.
Can you provide the financial health for JNJ stock?
The financial health rating of JOHNSON & JOHNSON (JNJ) is 6 / 10.
Is the dividend of JOHNSON & JOHNSON sustainable?
The dividend rating of JOHNSON & JOHNSON (JNJ) is 7 / 10 and the dividend payout ratio is 48.7%.