JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNJ - US4781601046 - Common Stock
206.235 USD
+0.82 (+0.4%)
Taking everything into account, JNJ scores 6 out of 10 in our fundamental rating. JNJ was compared to 192 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.
1. Profitability
1.1 Basic Checks
JNJ had positive earnings in the past year.
JNJ had a positive operating cash flow in the past year.
Each year in the past 5 years JNJ has been profitable.
Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.03%, JNJ belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
JNJ has a Return On Equity of 31.69%. This is amongst the best in the industry. JNJ outperforms 94.27% of its industry peers.
JNJ's Return On Invested Capital of 14.68% is amongst the best of the industry. JNJ outperforms 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 12.71%.
| 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's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 93.23% of its industry peers.
JNJ's Profit Margin has declined in the last couple of years.
The Operating Margin of JNJ (27.00%) is better than 92.71% 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 76.04% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
The number of shares outstanding for JNJ remains at a similar level compared to 1 year ago.
JNJ has less shares outstanding than it did 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 4.76. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.76, JNJ is in the better half of the industry, outperforming 74.48% of the companies in the same industry.
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 92.19% of the companies in the same industry.
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: 64.58% of the companies in the same industry are doing better.
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 | 4.76 |
ROIC/WACC1.56
WACC9.39%
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 Current ratio of 1.07. This is amonst the worse of the industry: JNJ underperforms 80.21% of its industry peers.
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 81.77% 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.
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.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 5.08% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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
Based on estimates for the next years, JNJ will show a small growth in Earnings Per Share. The EPS will grow by 7.68% on average per year.
Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
EPS Next Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.68%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.29%
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
With a Price/Earnings ratio of 19.87, JNJ is valued on the expensive side.
Based on the Price/Earnings ratio, JNJ is valued cheaper than 80.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, JNJ is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.70, the valuation of JNJ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 79.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 80.73% 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 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.35 | ||
| EV/EBITDA | 15.73 |
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)2.02
PEG (5Y)6.97
EPS Next 2Y8%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.51%.
Compared to an average industry Dividend Yield of 6.81, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.75% of the companies listed in the same industry.
JNJ's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 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.
JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y8%
EPS Next 3Y7.66%
NYSE:JNJ (12/3/2025, 9:47:09 AM)
206.235
+0.82 (+0.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner Change-0.05%
Ins Owners0.04%
Ins Owner Change-0.61%
Market Cap496.88B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.48
Price Target205.15 (-0.53%)
Short Float %0.84%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)11.58%
PT rev (3m)13.86%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 17.7 | ||
| P/S | 5.39 | ||
| P/FCF | 25.35 | ||
| P/OCF | 20.53 | ||
| P/B | 6.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)10.38
EY5.03%
EPS(NY)11.65
Fwd EY5.65%
FCF(TTM)8.13
FCFY3.94%
OCF(TTM)10.05
OCFY4.87%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.02
PEG (5Y)6.97
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 | 4.76 |
F-Score5
WACC9.39%
ROIC/WACC1.56
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 Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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 for 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.
What is the financial health of JOHNSON & JOHNSON (JNJ) stock?
The financial health rating of JOHNSON & JOHNSON (JNJ) is 6 / 10.
How sustainable is the dividend of JOHNSON & JOHNSON (JNJ) stock?
The dividend rating of JOHNSON & JOHNSON (JNJ) is 6 / 10 and the dividend payout ratio is 48.7%.