JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis

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

239.99 USD
+2.2 (+0.93%)
At close: Feb 6, 2026
239.88 USD
-0.11 (-0.05%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. 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. Profitability

1.1 Basic Checks

  • In the past year JNJ was profitable.
  • In the past year JNJ had a positive cash flow from operations.
  • In the past 5 years JNJ has always 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

  • 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.
  • JNJ has a Return On Equity of 31.69%. This is amongst the best in the industry. JNJ outperforms 94.24% of its industry peers.
  • The Return On Invested Capital of JNJ (14.16%) is better than 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

  • JNJ's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 92.67% of its industry peers.
  • JNJ's Profit Margin has improved in the last couple of years.
  • The Operating Margin of JNJ (27.00%) is better than 92.15% 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.
  • 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still 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.
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 5.20. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of JNJ (5.20) is better than 74.35% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.34, JNJ belongs to the top 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.
  • Looking at the Debt to Equity ratio, with a value of 0.55, JNJ is doing worse than 64.40% 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 0.55
Debt/FCF 2.34
Altman-Z 5.2
ROIC/WACC1.45
WACC9.73%
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

  • 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 has a Current ratio of 1.07. This is amonst the worse of the industry: JNJ underperforms 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 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 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.
  • The Revenue has been growing slightly by 2.67% on average over the past years.
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.
  • 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

  • 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.
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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6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.22, 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 27.93, JNJ is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 20.60, which indicates a rather expensive current valuation of JNJ.
  • Based on the Price/Forward Earnings ratio, JNJ is valued a bit cheaper than the industry average as 79.06% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. JNJ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.22
Fwd PE 20.6
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 81.68% of the companies listed 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 RankSector Rank
P/FCF 29.5
EV/EBITDA 18.31
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 an expensive valuation of the company.
  • JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)3.64
EPS Next 2Y8.2%
EPS Next 3Y8.39%

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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 2.19%. 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 0.94. JNJ pays more dividend than 93.19% of the companies in the same industry.
  • JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector 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 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

  • 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%
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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JOHNSON & JOHNSON

NYSE:JNJ (2/6/2026, 8:04:00 PM)

After market: 239.88 -0.11 (-0.05%)

239.99

+2.2 (+0.93%)

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-2.04%
Ins Owners0.03%
Ins Owner Change0.21%
Market Cap578.21B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target234.56 (-2.26%)
Short Float %0.89%
Short Ratio2.36
Dividend
Industry RankSector 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
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 RankSector Rank
PE 22.22
Fwd PE 20.6
P/S 6.27
P/FCF 29.5
P/OCF 23.89
P/B 7.29
P/tB N/A
EV/EBITDA 18.31
EPS(TTM)10.8
EY4.5%
EPS(NY)11.65
Fwd EY4.85%
FCF(TTM)8.13
FCFY3.39%
OCF(TTM)10.05
OCFY4.19%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.82
PEG (5Y)3.64
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 5.2
F-Score4
WACC9.73%
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%.