JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:JNJ • US4781601046
238.555 USD
-0.08 (-0.04%)
Last: Feb 10, 2026, 10:04 AM
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 has a great profitability rating, 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!.
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.
- JNJ had positive earnings in each of the past 5 years.
- JNJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 13.03%, JNJ belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
- With an excellent Return On Equity value of 31.69%, JNJ belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
- 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 Rank | Sector 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
1.3 Margins
- JNJ's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 92.67% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- JNJ's Operating Margin of 27.00% is amongst the best of the industry. JNJ outperforms 92.15% of its industry peers.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- Looking at the Gross Margin, with a value of 68.14%, JNJ is in the better half of the industry, outperforming 76.96% 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 | 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%
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.
- JNJ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- JNJ has an Altman-Z score of 5.18. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
- JNJ has a better Altman-Z score (5.18) than 74.87% 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.
- With an excellent Debt to FCF ratio value of 2.34, JNJ belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
- The Debt to Equity ratio of JNJ (0.55) is worse than 64.40% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.45
WACC9.74%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.07, JNJ is not doing good in the industry: 82.72% of the companies in the same industry are doing better.
- JNJ has a Quick Ratio of 1.07. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting 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.
- JNJ does not score too well on the current and quick ratio evaluation. However, as it has 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 grown by an nice 8.11% over the past year.
- Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 6.11% on average per year.
- Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
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
- The Earnings Per Share is expected to grow by 8.17% on average over the next years. This is quite good.
- JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.17%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.09 indicates a rather expensive valuation of JNJ.
- Based on the Price/Earnings ratio, JNJ is valued cheaper than 80.10% of the companies in the same industry.
- JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
- JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 20.48.
- Based on the Price/Forward Earnings ratio, JNJ is valued a bit cheaper than 78.53% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
- JNJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JNJ is cheaper than 81.68% of the companies in the same industry.
- JNJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JNJ is cheaper than 82.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.33 | ||
| EV/EBITDA | 18.21 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)3.62
EPS Next 2Y8.2%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.19%, JNJ has a reasonable but not impressive dividend return.
- JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.93. JNJ pays more dividend than 93.19% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
- The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
- JNJ has paid a dividend for at least 10 years, which is a reliable track record.
- JNJ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y8.2%
EPS Next 3Y8.39%
NYSE:JNJ (2/10/2026, 10:04:00 AM)
238.555
-0.08 (-0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21 2026-01-21/bmo
Earnings (Next)04-14 2026-04-14
Inst Owners75.09%
Inst Owner Change-2.04%
Ins Owners0.03%
Ins Owner Change0.21%
Market Cap574.75B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target234.56 (-1.67%)
Short Float %0.89%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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)10.21%
PT rev (3m)14.97%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 20.48 | ||
| P/S | 6.24 | ||
| P/FCF | 29.33 | ||
| P/OCF | 23.75 | ||
| P/B | 7.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.21 |
EPS(TTM)10.8
EY4.53%
EPS(NY)11.65
Fwd EY4.88%
FCF(TTM)8.13
FCFY3.41%
OCF(TTM)10.05
OCFY4.21%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.8
PEG (5Y)3.62
Graham Number89.42
Profitability
| Industry Rank | Sector 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 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 | 5.18 |
F-Score4
WACC9.74%
ROIC/WACC1.45
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 Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
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%.