JOHNSON & JOHNSON (JNJ) Fundamental Analysis & Valuation

NYSE:JNJ • US4781601046

238.67 USD
-6.63 (-2.7%)
Last: Mar 5, 2026, 11:07 AM
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This JNJ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall JNJ gets a fundamental rating of 6 out of 10. We evaluated JNJ against 193 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. Finally JNJ also has an excellent dividend rating. These ratings could make JNJ a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

8

1. JNJ Profitability Analysis

1.1 Basic Checks

  • In the past year JNJ was profitable.
  • JNJ had a positive operating cash flow in the past year.
  • In the past 5 years JNJ has always been profitable.
  • In the past 5 years JNJ always reported a positive cash flow from operatings.
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

  • The Return On Assets of JNJ (13.46%) is better than 94.30% of its industry peers.
  • The Return On Equity of JNJ (32.87%) is better than 94.82% of its industry peers.
  • JNJ's Return On Invested Capital of 14.37% is amongst the best of the industry. JNJ outperforms 94.30% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 12.91%.
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROIC 14.37%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
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

  • JNJ's Profit Margin of 28.46% is amongst the best of the industry. JNJ outperforms 93.78% of its industry peers.
  • JNJ's Profit Margin has improved in the last couple of years.
  • JNJ has a Operating Margin of 27.78%. This is amongst the best in the industry. JNJ outperforms 93.26% of its industry peers.
  • JNJ's Operating Margin has improved in the last couple of years.
  • JNJ has a Gross Margin of 67.92%. This is in the better half of the industry: JNJ outperforms 77.20% 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 RankSector Rank
OM 27.78%
PM (TTM) 28.46%
GM 67.92%
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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6

2. JNJ Health Analysis

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.
  • The number of shares outstanding for JNJ remains at a similar level compared to 1 year ago.
  • 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.
JNJ Yearly Shares OutstandingJNJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 50B 100B 150B

2.2 Solvency

  • An Altman-Z score of 5.12 indicates that JNJ is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.12, JNJ is doing good in the industry, outperforming 76.17% of the companies in the same industry.
  • The Debt to FCF ratio of JNJ is 2.43, which is a good value as it means it would take JNJ, 2.43 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.43, JNJ belongs to the top of the industry, outperforming 93.78% of the companies in the same industry.
  • JNJ has a Debt/Equity ratio of 0.56. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.56, JNJ is doing worse than 64.25% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Altman-Z 5.12
ROIC/WACC1.55
WACC9.3%
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 2025 20B 40B 60B 80B

2.3 Liquidity

  • JNJ has a Current Ratio of 1.03. 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 (1.03) than 82.90% of its industry peers.
  • JNJ has a Quick Ratio of 1.03. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of JNJ (0.77) is worse than 82.38% 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 RankSector Rank
Current Ratio 1.03
Quick Ratio 0.77
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 2025 20B 40B 60B

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

5

3. JNJ Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.11% over the past year.
  • The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
  • The Revenue has been growing slightly by 6.05% in the past 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

  • The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
  • Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.75%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
Revenue Next 5Y6.02%

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.
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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5

4. JNJ Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.10, JNJ is valued on the expensive side.
  • Based on the Price/Earnings ratio, JNJ is valued cheaper than 80.83% of the companies in the same industry.
  • JNJ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 20.49.
  • JNJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 78.76% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.11, JNJ is valued at the same level.
Industry RankSector Rank
PE 22.1
Fwd PE 20.49
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • JNJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JNJ is cheaper than 81.35% 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 82.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.19
EV/EBITDA 17.87
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.
  • JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)3.62
EPS Next 2Y8.2%
EPS Next 3Y8.39%

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

7

5. JNJ Dividend Analysis

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
  • JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.67. JNJ pays more dividend than 93.26% of the companies in the same industry.
  • JNJ's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.14%

5.2 History

  • On average, the dividend of JNJ grows each year by 7.68%, which is quite nice.
  • 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)7.68%
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

  • JNJ pays out 46.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • JNJ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
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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JNJ Fundamentals: All Metrics, Ratios and Statistics

JOHNSON & JOHNSON

NYSE:JNJ (3/5/2026, 11:07:07 AM)

238.67

-6.63 (-2.7%)

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 Change0.75%
Ins Owners0.03%
Ins Owner Change4.13%
Market Cap575.03B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target236.32 (-0.98%)
Short Float %0.86%
Short Ratio2.28
Dividend
Industry RankSector Rank
Dividend Yield 2.14%
Yearly Dividend5.14
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-0.13%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.13%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.84%
EPS beat(12)10
Avg EPS beat(12)3.23%
EPS beat(16)14
Avg EPS beat(16)3.09%
Revenue beat(2)2
Avg Revenue beat(2)0.35%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.67%
Revenue beat(4)4
Avg Revenue beat(4)1.04%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-4.44%
PT rev (1m)9.77%
PT rev (3m)15.19%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.84%
Valuation
Industry RankSector Rank
PE 22.1
Fwd PE 20.49
P/S 6.1
P/FCF 29.19
P/OCF 23.44
P/B 7.05
P/tB N/A
EV/EBITDA 17.87
EPS(TTM)10.8
EY4.53%
EPS(NY)11.65
Fwd EY4.88%
FCF(TTM)8.18
FCFY3.43%
OCF(TTM)10.18
OCFY4.27%
SpS39.1
BVpS33.85
TBVpS-7.32
PEG (NY)2.81
PEG (5Y)3.62
Graham Number90.69
Profitability
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROCE 18.03%
ROIC 14.37%
ROICexc 16.57%
ROICexgc 67.45%
OM 27.78%
PM (TTM) 28.46%
GM 67.92%
FCFM 20.91%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
ROICexc(3y)19.6%
ROICexc(5y)18.23%
ROICexgc(3y)74.51%
ROICexgc(5y)73.44%
ROCE(3y)20.24%
ROCE(5y)18.7%
ROICexgc growth 3Y3.9%
ROICexgc growth 5Y-2.01%
ROICexc growth 3Y8.52%
ROICexc growth 5Y5.62%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Debt/EBITDA 1.36
Cap/Depr 64.4%
Cap/Sales 5.13%
Interest Coverage 6.81
Cash Conversion 72.86%
Profit Quality 73.49%
Current Ratio 1.03
Quick Ratio 0.77
Altman-Z 5.12
F-Score4
WACC9.3%
ROIC/WACC1.55
Cap/Depr(3y)61.79%
Cap/Depr(5y)58.46%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.02%
Profit Quality(3y)88.82%
Profit Quality(5y)91.38%
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 5Y8.75%
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 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.18%
EBIT Next 3Y11.51%
EBIT Next 5Y8.55%
FCF growth 1Y-0.73%
FCF growth 3Y4.65%
FCF growth 5Y-0.49%
OCF growth 1Y1.09%
OCF growth 3Y4.99%
OCF growth 5Y0.83%

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 5 / 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 46.19%.