JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
NYSE:JNJ • US4781601046
243.47 USD
-1.7 (-0.69%)
At close: Feb 26, 2026
242.97 USD
-0.5 (-0.21%)
Pre-Market: 2/27/2026, 6:48:45 AM
JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. While JNJ belongs to the best of the industry regarding profitability, 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. This makes JNJ very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- JNJ had positive earnings in the past year.
- In the past year JNJ had a positive cash flow from operations.
- In the past 5 years JNJ has always been profitable.
- Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
- JNJ's Return On Assets of 13.46% is amongst the best of the industry. JNJ outperforms 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 better Return On Invested Capital (14.37%) than 94.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of JNJ (28.46%) is better than 93.75% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- JNJ's Operating Margin of 27.78% is amongst the best of the industry. JNJ outperforms 93.23% of its industry peers.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- JNJ has a better Gross Margin (67.92%) than 77.60% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still creating some value.
- JNJ has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
- JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.09 indicates that JNJ is not in any danger for bankruptcy at the moment.
- The Altman-Z score of JNJ (5.09) is better than 75.52% 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.
- With an excellent Debt to FCF ratio value of 2.43, JNJ belongs to the best of the industry, outperforming 93.75% 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.
- JNJ has a worse Debt to Equity ratio (0.56) than 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 | 5.09 |
ROIC/WACC1.52
WACC9.43%
2.3 Liquidity
- JNJ has a Current Ratio of 1.03. 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 1.03. 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.
- With a Quick ratio value of 0.77, JNJ is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- 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.
- The Revenue has been growing slightly by 6.05% in the past year.
- 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.
- JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
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.
- 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 22.54, 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 80.73% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (27.11), we can say JNJ is valued inline with the index average.
- The Price/Forward Earnings ratio is 20.90, which indicates a rather expensive current valuation of JNJ.
- Based on the Price/Forward Earnings ratio, JNJ is valued a bit cheaper than 77.60% 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 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaply inside the industry as 81.77% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, JNJ is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.78 | ||
| EV/EBITDA | 17.74 |
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)2.86
PEG (5Y)3.69
EPS Next 2Y8.2%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- JNJ has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
- 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.
- JNJ's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
- On average, the dividend of JNJ grows each year by 7.68%, which is quite nice.
- 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)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.
- JNJ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
243.47
-1.7 (-0.69%)
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 Cap586.59B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target234.56 (-3.66%)
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 | 22.54 | ||
| Fwd PE | 20.9 | ||
| P/S | 6.23 | ||
| P/FCF | 29.78 | ||
| P/OCF | 23.91 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.74 |
EPS(TTM)10.8
EY4.44%
EPS(NY)11.65
Fwd EY4.79%
FCF(TTM)8.18
FCFY3.36%
OCF(TTM)10.18
OCFY4.18%
SpS39.1
BVpS33.85
TBVpS-7.32
PEG (NY)2.86
PEG (5Y)3.69
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 | 5.09 |
F-Score4
WACC9.43%
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%.