JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - NYSE:JNJ - US4781601046 - Common Stock
176.46 USD
-0.94 (-0.53%)
176.75 USD
+0.29 (+0.16%)
JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 196 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. With these ratings, JNJ could be worth investigating further for dividend investing!.
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.
In the past 5 years JNJ has always been profitable.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.72%, JNJ belongs to the top of the industry, outperforming 93.37% of the companies in the same industry.
JNJ has a better Return On Equity (28.88%) than 94.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.57%, JNJ belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 15.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.57% |
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
JNJ has a Profit Margin of 25.00%. This is amongst the best in the industry. JNJ outperforms 94.90% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
The Operating Margin of JNJ (25.61%) is better than 92.86% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 67.98%. This is in the better half of the industry: JNJ outperforms 75.51% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still 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.
Compared to 1 year ago, JNJ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.28 indicates that JNJ is not in any danger for bankruptcy at the moment.
The Altman-Z score of JNJ (4.28) is better than 77.04% of its industry peers.
The Debt to FCF ratio of JNJ is 2.74, which is a good value as it means it would take JNJ, 2.74 years of fcf income to pay off all of its debts.
JNJ has a better Debt to FCF ratio (2.74) than 90.82% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that JNJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, JNJ is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.33
WACC10.19%
2.3 Liquidity
A Current Ratio of 1.01 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ's Current ratio of 1.01 is on the low side compared to the rest of the industry. JNJ is outperformed by 80.61% of its industry peers.
A Quick Ratio of 0.76 indicates that JNJ may have some problems paying its short term obligations.
JNJ's Quick ratio of 0.76 is on the low side compared to the rest of the industry. JNJ is outperformed by 82.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.58%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
3.2 Future
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.46% yearly.
The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
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
JNJ is valuated rather expensively with a Price/Earnings ratio of 17.65.
Based on the Price/Earnings ratio, JNJ is valued cheaper than 84.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, JNJ is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.38 indicates a correct valuation of JNJ.
80.10% of the companies in the same industry are more expensive than JNJ, based on the Price/Forward Earnings ratio.
JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.38 |
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 82.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, JNJ is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.91 | ||
| EV/EBITDA | 14.26 |
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)1.8
PEG (5Y)6.19
EPS Next 2Y7.16%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.91%.
JNJ's Dividend Yield is rather good when compared to the industry average which is at 5.04. JNJ pays more dividend than 93.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
On average, the dividend of JNJ grows each year by 9.24%, 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)9.24%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
53.34% 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.
DP53.34%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
176.46
-0.94 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners73.87%
Inst Owner Change0.11%
Ins Owners0.04%
Ins Owner Change-4.73%
Market Cap424.98B
Analysts73.55
Price Target182.48 (3.41%)
Short Float %0.78%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.13%
Min EPS beat(2)2.3%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.3%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)14
Avg EPS beat(16)3.64%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)-3.28%
Revenue beat(16)6
Avg Revenue beat(16)-8.51%
PT rev (1m)1.59%
PT rev (3m)5.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.38 | ||
| P/S | 4.69 | ||
| P/FCF | 22.91 | ||
| P/OCF | 18.45 | ||
| P/B | 5.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.26 |
EPS(TTM)10
EY5.67%
EPS(NY)11.47
Fwd EY6.5%
FCF(TTM)7.7
FCFY4.36%
OCF(TTM)9.56
OCFY5.42%
SpS37.63
BVpS32.58
TBVpS-8.09
PEG (NY)1.8
PEG (5Y)6.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.67% | ||
| ROIC | 13.57% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 64.93% | ||
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% | ||
| FCFM | 20.47% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.28 |
F-Score4
WACC10.19%
ROIC/WACC1.33
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)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
EBIT growth 1Y-6.86%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.86%
EBIT Next 3Y12.85%
EBIT Next 5Y8.43%
FCF growth 1Y27.51%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y20.74%
OCF growth 3Y1.2%
OCF growth 5Y0.72%