JOHNSON & JOHNSON (JNJ) Fundamental Analysis & Valuation

NYSE:JNJ • US4781601046

Current stock price

243.04 USD
-1.08 (-0.44%)
At close:
242.5 USD
-0.54 (-0.22%)
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

  • JNJ had positive earnings in the past year.
  • JNJ had a positive operating cash flow in the past year.
  • In the past 5 years JNJ has always 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

  • Looking at the Return On Assets, with a value of 13.46%, JNJ belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
  • JNJ's Return On Equity of 32.87% is amongst the best of the industry. JNJ outperforms 94.79% of its industry peers.
  • JNJ's Return On Invested Capital of 14.37% is amongst the best of the industry. JNJ outperforms 93.75% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 13.06%.
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 better Profit Margin (28.46%) than 94.27% of its industry peers.
  • JNJ's Profit Margin has improved in the last couple of years.
  • The Operating Margin of JNJ (27.78%) is better than 93.23% of its industry peers.
  • In the last couple of years the Operating Margin of JNJ has grown nicely.
  • JNJ's Gross Margin of 67.92% is fine compared to the rest of the industry. JNJ outperforms 76.04% of its industry peers.
  • 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

  • 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.
  • JNJ has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for JNJ is higher compared to a year ago.
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 5.10. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of JNJ (5.10) is better than 77.08% 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.
  • JNJ has a Debt to FCF ratio of 2.43. This is amongst the best in the industry. JNJ outperforms 92.71% of its industry peers.
  • A Debt/Equity ratio of 0.56 indicates that JNJ is somewhat dependend on debt financing.
  • JNJ has a worse Debt to Equity ratio (0.56) than 65.10% 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 RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Altman-Z 5.1
ROIC/WACC1.51
WACC9.54%
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

  • 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.
  • Looking at the Current ratio, with a value of 1.03, JNJ is doing worse than 83.85% of the companies in the same industry.
  • A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
  • JNJ's Quick ratio of 0.77 is on the low side compared to the rest of the industry. JNJ is outperformed by 84.38% 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 1.03
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

  • The Earnings Per Share has grown by an nice 8.11% 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 6.11% on average per year.
  • 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.
  • JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y7.85%
EPS Next 2Y8.27%
EPS Next 3Y8.5%
EPS Next 5Y8.75%
Revenue Next Year7.19%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
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.
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

  • With a Price/Earnings ratio of 22.50, JNJ is valued on the expensive side.
  • Based on the Price/Earnings ratio, JNJ is valued cheaper than 80.73% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.51. JNJ is around the same levels.
  • A Price/Forward Earnings ratio of 20.87 indicates a rather expensive 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.5
Fwd PE 20.87
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

  • JNJ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 79.69% of the companies in the same industry.
  • 82.81% of the companies in the same industry are more expensive than JNJ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.72
EV/EBITDA 17.78
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.
  • JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)3.69
EPS Next 2Y8.27%
EPS Next 3Y8.5%

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7

5. JNJ Dividend Analysis

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.17%.
  • Compared to an average industry Dividend Yield of 0.70, 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 1.89, JNJ has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.17%

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
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 2Y8.27%
EPS Next 3Y8.5%
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 (4/2/2026, 4:54:38 PM)

After market: 242.5 -0.54 (-0.22%)

243.04

-1.08 (-0.44%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.62%
Inst Owner Change4.68%
Ins Owners0.04%
Ins Owner Change4.13%
Market Cap585.39B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target244.4 (0.56%)
Short Float %0.97%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
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)-0.07%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.78%
Valuation
Industry RankSector Rank
PE 22.5
Fwd PE 20.87
P/S 6.21
P/FCF 29.72
P/OCF 23.86
P/B 7.18
P/tB N/A
EV/EBITDA 17.78
EPS(TTM)10.8
EY4.44%
EPS(NY)11.65
Fwd EY4.79%
FCF(TTM)8.18
FCFY3.36%
OCF(TTM)10.18
OCFY4.19%
SpS39.11
BVpS33.86
TBVpS-7.32
PEG (NY)2.87
PEG (5Y)3.69
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 5.1
F-Score4
WACC9.54%
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 Y7.85%
EPS Next 2Y8.27%
EPS Next 3Y8.5%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.19%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
Revenue Next 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.18%
EBIT Next 3Y11.51%
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 7.85% in the next year.