JOHNSON & JOHNSON (JNJ) Fundamental Analysis & Valuation

NYSE:JNJ • US4781601046

Current stock price

238.46 USD
-2.85 (-1.18%)
At close:
238.935 USD
+0.47 (+0.2%)
After Hours:

This JNJ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. JNJ Profitability Analysis

1.1 Basic Checks

  • In the past year JNJ was profitable.
  • In the past year JNJ had a positive cash flow from operations.
  • 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.
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 94.76% of its industry peers.
  • JNJ has a better Return On Equity (32.87%) than 94.76% of its industry peers.
  • The Return On Invested Capital of JNJ (14.37%) is better than 93.72% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for JNJ is above the industry average of 13.10%.
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 has a Profit Margin of 28.46%. This is amongst the best in the industry. JNJ outperforms 94.24% of its industry peers.
  • In the last couple of years the Profit Margin of JNJ has grown nicely.
  • JNJ has a Operating Margin of 27.78%. This is amongst the best in the industry. JNJ outperforms 93.72% of its industry peers.
  • In the last couple of years the Operating Margin of JNJ has grown nicely.
  • Looking at the Gross Margin, with a value of 67.92%, JNJ is in the better half of the industry, outperforming 75.39% 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 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
  • JNJ has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, JNJ has less shares outstanding
  • 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

  • JNJ has an Altman-Z score of 5.03. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • JNJ has a Altman-Z score of 5.03. This is in the better half of the industry: JNJ outperforms 73.82% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.43, JNJ belongs to the top of the industry, outperforming 93.19% 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.
  • The Debt to Equity ratio of JNJ (0.56) is worse than 68.06% of its industry peers.
  • Although JNJ's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 5.03
ROIC/WACC1.51
WACC9.5%
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

  • A Current Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.03, JNJ is not doing good in the industry: 86.39% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.77, JNJ is not doing good in the industry: 86.39% of the companies in the same industry are doing better.
  • 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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5

3. JNJ Growth Analysis

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.
  • Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 6.11% on average per year.
  • JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
  • Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
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

  • Based on estimates for the next years, JNJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.75% on average per year.
  • The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y8.75%
Revenue Next Year7.24%
Revenue Next 2Y6.55%
Revenue Next 3Y6.35%
Revenue Next 5Y6.02%

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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5

4. JNJ Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.08, which indicates a rather expensive current valuation of JNJ.
  • JNJ's Price/Earnings ratio is rather cheap when compared to the industry. JNJ is cheaper than 81.68% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, JNJ is valued at the same level.
  • JNJ is valuated rather expensively with a Price/Forward Earnings ratio of 20.46.
  • 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.
  • JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.39.
Industry RankSector Rank
PE 22.08
Fwd PE 20.46
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaply inside the industry as 80.63% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, JNJ is valued cheaper than 83.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.16
EV/EBITDA 17.37
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.
  • The excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)3.62
EPS Next 2Y8.38%
EPS Next 3Y8.73%

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7

5. JNJ Dividend Analysis

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.15%. 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 0.42. JNJ pays more dividend than 93.72% 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 2.15%

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
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

  • 46.19% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
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 (4/10/2026, 8:04:00 PM)

After market: 238.935 +0.47 (+0.2%)

238.46

-2.85 (-1.18%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.61%
Inst Owner Change-3.72%
Ins Owners0.04%
Ins Owner Change4.13%
Market Cap574.36B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts76.25
Price Target244.4 (2.49%)
Short Float %0.97%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2.15%
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)3.42%
PT rev (3m)14.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.83%
Valuation
Industry RankSector Rank
PE 22.08
Fwd PE 20.46
P/S 6.1
P/FCF 29.16
P/OCF 23.41
P/B 7.04
P/tB N/A
EV/EBITDA 17.37
EPS(TTM)10.8
EY4.53%
EPS(NY)11.65
Fwd EY4.89%
FCF(TTM)8.18
FCFY3.43%
OCF(TTM)10.18
OCFY4.27%
SpS39.11
BVpS33.86
TBVpS-7.32
PEG (NY)2.79
PEG (5Y)3.62
Graham Number90.7
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 5.03
F-Score4
WACC9.5%
ROIC/WACC1.51
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 Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.24%
Revenue Next 2Y6.55%
Revenue Next 3Y6.35%
Revenue Next 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.27%
EBIT Next 3Y11.78%
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 Fundamental Analysis 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.


How profitable is JOHNSON & JOHNSON (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.


Can you provide the expected EPS growth for JNJ stock?

The Earnings per Share (EPS) of JOHNSON & JOHNSON (JNJ) is expected to grow by 7.91% in the next year.