JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:JNJ • US4781601046

234.47 USD
+1.37 (+0.59%)
At close: Feb 4, 2026
233.47 USD
-1 (-0.43%)
Pre-Market: 2/5/2026, 5:16:40 AM
Fundamental Rating

6

Taking everything into account, JNJ scores 6 out of 10 in our fundamental rating. JNJ was compared to 191 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 has a correct valuation and a medium growth rate. JNJ also has an excellent dividend rating. With these ratings, JNJ could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

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.
  • Each year in the past 5 years JNJ has been profitable.
  • JNJ had a positive operating cash flow in 4 of the past 5 years.
JNJ Yearly Net Income VS EBIT VS OCF VS FCFJNJ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

1.2 Ratios

  • JNJ has a better Return On Assets (13.03%) than 93.19% of its industry peers.
  • JNJ has a better Return On Equity (31.69%) than 93.72% of its industry peers.
  • JNJ has a Return On Invested Capital of 14.16%. This is amongst the best in the industry. JNJ outperforms 93.72% of its industry peers.
Industry RankSector Rank
ROA 13.03%
ROE 31.69%
ROIC 14.16%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
JNJ Yearly ROA, ROE, ROICJNJ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • The Profit Margin of JNJ (27.26%) is better than 92.67% of its industry peers.
  • In the last couple of years the Profit Margin of JNJ has grown nicely.
  • The Operating Margin of JNJ (27.00%) is better than 92.67% of its industry peers.
  • JNJ's Operating Margin has improved in the last couple of years.
  • JNJ has a Gross Margin of 68.14%. This is in the better half of the industry: JNJ outperforms 76.96% of its industry peers.
  • JNJ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27%
PM (TTM) 27.26%
GM 68.14%
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
JNJ Yearly Profit, Operating, Gross MarginsJNJ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • There is no outstanding debt for JNJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
JNJ Yearly Shares OutstandingJNJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
JNJ Yearly Total Debt VS Total AssetsJNJ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

  • JNJ has an Altman-Z score of 5.13. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.13, JNJ is doing good in the industry, outperforming 73.82% of the companies in the same industry.
  • 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.
  • 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.
  • JNJ's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. JNJ is outperformed by 65.44% 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.34
Altman-Z 5.13
ROIC/WACC1.44
WACC9.82%
JNJ Yearly LT Debt VS Equity VS FCFJNJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
  • JNJ has a worse Current ratio (1.07) than 82.20% of its industry peers.
  • A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
  • JNJ's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 81.68% 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 RankSector Rank
Current Ratio 1.07
Quick Ratio 0.8
JNJ Yearly Current Assets VS Current LiabilitesJNJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • JNJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
  • JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
  • Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
  • JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%

3.2 Future

  • JNJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.17% yearly.
  • The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%

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.
JNJ Yearly Revenue VS EstimatesJNJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
JNJ Yearly EPS VS EstimatesJNJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • JNJ is valuated rather expensively with a Price/Earnings ratio of 21.71.
  • Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 80.10% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (28.25), we can say JNJ is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 20.28 indicates a rather expensive valuation of JNJ.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 79.06% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. JNJ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.71
Fwd PE 20.28
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 81.68% of the companies in the same industry are more expensive than JNJ, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 81.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 28.83
EV/EBITDA 17.9
JNJ Per share dataJNJ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)3.56
EPS Next 2Y7.63%
EPS Next 3Y7.31%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.29%.
  • JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.62. JNJ pays more dividend than 92.67% of the companies in the same industry.
  • JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.29%

5.2 History

  • The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
  • JNJ has been paying a dividend for at least 10 years, so it has 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
JNJ Yearly Dividends per shareJNJ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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 2Y7.63%
EPS Next 3Y7.31%
JNJ Yearly Income VS Free CF VS DividendJNJ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B
JNJ Dividend Payout.JNJ Dividend Payout, showing the Payout Ratio.JNJ Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

JOHNSON & JOHNSON

NYSE:JNJ (2/4/2026, 8:04:00 PM)

Premarket: 233.47 -1 (-0.43%)

234.47

+1.37 (+0.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.09%
Inst Owner Change-2.14%
Ins Owners0.03%
Ins Owner Change0.12%
Market Cap564.91B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target215.29 (-8.18%)
Short Float %0.89%
Short Ratio2.36
Dividend
Industry RankSector Rank
Dividend Yield 2.29%
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24
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)1.15%
PT rev (3m)5.52%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.37%
Valuation
Industry RankSector Rank
PE 21.71
Fwd PE 20.28
P/S 6.13
P/FCF 28.83
P/OCF 23.34
P/B 7.13
P/tB N/A
EV/EBITDA 17.9
EPS(TTM)10.8
EY4.61%
EPS(NY)11.56
Fwd EY4.93%
FCF(TTM)8.13
FCFY3.47%
OCF(TTM)10.05
OCFY4.28%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)3.09
PEG (5Y)3.56
Graham Number89.42
Profitability
Industry RankSector Rank
ROA 13.03%
ROE 31.69%
ROCE 17.53%
ROIC 14.16%
ROICexc 16.21%
ROICexgc 66.83%
OM 27%
PM (TTM) 27.26%
GM 68.14%
FCFM 21.27%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
F-Score4
Asset Turnover0.48
Health
Industry RankSector 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 5.13
F-Score4
WACC9.82%
ROIC/WACC1.44
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y7.6%
FCF growth 1Y-5.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.75%
OCF growth 3YN/A
OCF growth 5YN/A

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%.