JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNJ - US4781601046 - Common Stock
207.49 USD
+2.7 (+1.32%)
206.982 USD
-0.51 (-0.24%)
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. 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
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
The Return On Assets of JNJ (13.03%) is better than 93.19% of its industry peers.
JNJ has a better Return On Equity (31.69%) than 93.72% of its industry peers.
JNJ's Return On Invested Capital of 14.68% is amongst the best of the industry. JNJ outperforms 94.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 12.85%.
| 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
The Profit Margin of JNJ (27.26%) is better than 92.67% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
The Operating Margin of JNJ (27.00%) is better than 92.67% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
With a decent Gross Margin value of 68.14%, JNJ is doing good in 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 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
JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
Compared to 5 years ago, JNJ has less shares outstanding
The debt/assets ratio for JNJ is higher compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.75. 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 4.75, JNJ is in the better half of the industry, outperforming 72.77% of the companies in the same industry.
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.
JNJ's Debt to FCF ratio of 2.34 is amongst the best of the industry. JNJ outperforms 92.67% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
JNJ's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. JNJ is outperformed by 65.97% 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 | 4.75 |
ROIC/WACC1.5
WACC9.77%
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 83.25% 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 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 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
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
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 Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.99, which indicates a rather expensive current valuation of JNJ.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 81.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (26.92), we can say JNJ is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.80 indicates a rather expensive valuation of JNJ.
JNJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 79.58% of the companies in the same industry.
JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.8 |
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 81.15% 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 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.51 | ||
| EV/EBITDA | 15.68 |
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)2.03
PEG (5Y)7.01
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.51%.
JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.42. JNJ pays more dividend than 93.72% of the companies in the same industry.
JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| 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 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
5.3 Sustainability
48.70% of the earnings are spent on dividend by JNJ. 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 2Y8.02%
EPS Next 3Y7.82%
207.49
+2.7 (+1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners75.09%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change-0.56%
Market Cap499.91B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target212.83 (2.57%)
Short Float %1%
Short Ratio2.79
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-DateN/A
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)3.74%
PT rev (3m)15.76%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.8 | ||
| P/S | 5.42 | ||
| P/FCF | 25.51 | ||
| P/OCF | 20.65 | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.68 |
EPS(TTM)10.38
EY5%
EPS(NY)11.66
Fwd EY5.62%
FCF(TTM)8.13
FCFY3.92%
OCF(TTM)10.05
OCFY4.84%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.03
PEG (5Y)7.01
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 | 4.75 |
F-Score5
WACC9.77%
ROIC/WACC1.5
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 Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.55%
EBIT Next 3Y13.35%
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 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%.