JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:JNJ • US4781601046

240.86 USD
+2.51 (+1.05%)
At close: Feb 11, 2026
240.86 USD
0 (0%)
After Hours: 2/11/2026, 5:05:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall JNJ gets a fundamental rating of 6 out of 10. We evaluated JNJ against 191 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 decent growth rate and is not valued too expensively. JNJ also has an excellent dividend rating. These ratings could make JNJ a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year JNJ was profitable.
  • In the past year JNJ had a positive cash flow from operations.
  • JNJ had positive earnings in each of the past 5 years.
  • JNJ had a positive operating cash flow in 4 of the past 5 years.
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

  • JNJ has a Return On Assets of 13.03%. This is amongst the best in the industry. JNJ outperforms 93.72% of its industry peers.
  • With an excellent Return On Equity value of 31.69%, JNJ belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
  • JNJ has a better Return On Invested Capital (14.16%) than 93.72% of its industry peers.
Industry RankSector Rank
ROA 13.03%
ROE 31.69%
ROIC 14.16%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
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 27.26%. This is amongst the best in the industry. JNJ outperforms 92.67% of its industry peers.
  • In the last couple of years the Profit Margin of JNJ has grown nicely.
  • JNJ has a better Operating Margin (27.00%) than 92.15% of its industry peers.
  • In the last couple of years the Operating Margin of JNJ has grown nicely.
  • JNJ has a better Gross Margin (68.14%) than 76.96% 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%
PM (TTM) 27.26%
GM 68.14%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • There is no outstanding debt for JNJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
JNJ Yearly Shares OutstandingJNJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 50B 100B 150B

2.2 Solvency

  • JNJ has an Altman-Z score of 5.18. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of JNJ (5.18) is better than 74.87% of its industry peers.
  • JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as JNJ would need 2.34 years to pay back of all of its debts.
  • The Debt to FCF ratio of JNJ (2.34) is better than 93.72% of its industry peers.
  • A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
  • The Debt to Equity ratio of JNJ (0.55) is worse than 64.40% 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.34
Altman-Z 5.18
ROIC/WACC1.46
WACC9.69%
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 20B 40B 60B

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.
  • Looking at the Current ratio, with a value of 1.07, JNJ is doing worse than 82.72% of the companies in the same industry.
  • 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 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 RankSector Rank
Current Ratio 1.07
Quick Ratio 0.8
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 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 8.11% over the past year.
  • The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
  • 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

  • The Earnings Per Share is expected to grow by 8.17% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.17%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
Revenue Next 5Y5.37%

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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6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.30 indicates a rather expensive valuation of JNJ.
  • 80.63% 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 (28.03), we can say JNJ is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 20.67, the valuation of JNJ can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 78.01% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, JNJ is valued a bit cheaper.
Industry RankSector Rank
PE 22.3
Fwd PE 20.67
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • Based on the Price/Free Cash Flow ratio, JNJ is valued cheaply inside the industry as 82.20% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.61
EV/EBITDA 18.19
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 an expensive valuation of the company.
  • The excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)3.65
EPS Next 2Y8.2%
EPS Next 3Y8.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.19%.
  • JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.93. JNJ pays more dividend than 93.19% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, JNJ pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.19%

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
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

  • 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 2Y8.2%
EPS Next 3Y8.39%
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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JOHNSON & JOHNSON

NYSE:JNJ (2/11/2026, 5:05:00 PM)

After market: 240.86 0 (0%)

240.86

+2.51 (+1.05%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.09%
Inst Owner Change-2.04%
Ins Owners0.03%
Ins Owner Change0.21%
Market Cap580.30B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target234.56 (-2.62%)
Short Float %0.89%
Short Ratio2.36
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24
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)10.21%
PT rev (3m)14.97%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)1.84%
Valuation
Industry RankSector Rank
PE 22.3
Fwd PE 20.67
P/S 6.3
P/FCF 29.61
P/OCF 23.98
P/B 7.32
P/tB N/A
EV/EBITDA 18.19
EPS(TTM)10.8
EY4.48%
EPS(NY)11.65
Fwd EY4.84%
FCF(TTM)8.13
FCFY3.38%
OCF(TTM)10.05
OCFY4.17%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.83
PEG (5Y)3.65
Graham Number89.42
Profitability
Industry RankSector Rank
ROA 13.03%
ROE 31.69%
ROCE 17.53%
ROIC 14.16%
ROICexc 16.21%
ROICexgc 66.83%
OM 27%
PM (TTM) 27.26%
GM 68.14%
FCFM 21.27%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.48
Health
Industry RankSector 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 5.18
F-Score4
WACC9.69%
ROIC/WACC1.46
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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 5Y8.17%
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 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y7.6%
FCF growth 1Y-5.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.75%
OCF growth 3YN/A
OCF growth 5YN/A

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%.