JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
NYSE:JNJ • US4781601046
246.28 USD
+0.44 (+0.18%)
At close: Feb 24, 2026
245.1 USD
-1.18 (-0.48%)
After Hours: 2/24/2026, 4:31:37 PM
Overall JNJ gets a fundamental rating of 6 out of 10. We evaluated JNJ against 192 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but 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 would make JNJ suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year JNJ was profitable.
- 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
- The Return On Assets of JNJ (13.46%) is better than 94.27% of its industry peers.
- JNJ's Return On Equity of 32.87% is amongst the best of the industry. JNJ outperforms 94.27% of its industry peers.
- JNJ has a Return On Invested Capital of 14.37%. This is amongst the best in the industry. JNJ outperforms 94.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 12.96%.
| Industry Rank | Sector 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%
1.3 Margins
- JNJ's Profit Margin of 28.46% is amongst the best of the industry. JNJ outperforms 93.75% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- Looking at the Operating Margin, with a value of 27.78%, JNJ belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- With a decent Gross Margin value of 67.92%, JNJ is doing good in the industry, outperforming 77.60% of the companies in the same industry.
- JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
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.
- Compared to 5 years ago, JNJ has less shares outstanding
- JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
- JNJ has an Altman-Z score of 5.12. 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 5.12, JNJ is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
- JNJ has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as JNJ would need 2.43 years to pay back of all of its debts.
- JNJ's Debt to FCF ratio of 2.43 is amongst the best of the industry. JNJ outperforms 93.75% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that JNJ is somewhat dependend on debt financing.
- JNJ's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. JNJ is outperformed by 64.58% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.52
WACC9.45%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
- JNJ has a Current ratio of 1.03. This is amonst the worse of the industry: JNJ underperforms 83.33% 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.
- Looking at the Quick ratio, with a value of 0.77, JNJ is doing worse than 83.33% of the companies in the same industry.
- 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 | 1.03 | ||
| Quick Ratio | 0.77 |
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.80 indicates a rather expensive valuation of JNJ.
- 80.21% of the companies in the same industry are more expensive than JNJ, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (26.64), we can say JNJ is valued inline with the index average.
- JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 21.14.
- JNJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 77.60% of the companies in the same industry.
- JNJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 21.14 |
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 81.25% of the companies listed 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 82.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.12 | ||
| EV/EBITDA | 17.91 |
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)2.9
PEG (5Y)3.73
EPS Next 2Y8.2%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.11%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.07, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.23% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
- The dividend of JNJ is nicely growing with an annual growth rate of 7.68%!
- JNJ has been paying a dividend for at least 10 years, so it has 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
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.
- The dividend of JNJ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
246.28
+0.44 (+0.18%)
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 Change0.73%
Ins Owners0.03%
Ins Owner Change4.24%
Market Cap593.36B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target234.56 (-4.76%)
Short Float %0.81%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend5.14
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24 2026-02-24 (1.3)
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)8.95%
PT rev (3m)14.33%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 21.14 | ||
| P/S | 6.3 | ||
| P/FCF | 30.12 | ||
| P/OCF | 24.19 | ||
| P/B | 7.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.91 |
EPS(TTM)10.8
EY4.39%
EPS(NY)11.65
Fwd EY4.73%
FCF(TTM)8.18
FCFY3.32%
OCF(TTM)10.18
OCFY4.13%
SpS39.1
BVpS33.85
TBVpS-7.32
PEG (NY)2.9
PEG (5Y)3.73
Graham Number90.69
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC9.45%
ROIC/WACC1.52
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 Year23.35%
EBIT Next 3Y11.24%
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%.