JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:JNJ • US4781601046
239.73 USD
+1.94 (+0.82%)
Last: Feb 6, 2026, 02:07 PM
We assign a fundamental rating of 6 out of 10 to JNJ. JNJ was compared to 191 industry peers in the Pharmaceuticals industry. JNJ has an excellent profitability rating, but there are some minor concerns on its financial health. JNJ has a decent growth rate and is not valued too expensively. Finally JNJ also has an excellent dividend rating. These ratings would make JNJ suitable 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.
- Of the past 5 years JNJ 4 years had a positive operating cash flow.
1.2 Ratios
- JNJ's Return On Assets of 13.03% is amongst the best of the industry. JNJ outperforms 93.72% of its industry peers.
- JNJ has a Return On Equity of 31.69%. This is amongst the best in the industry. JNJ outperforms 94.24% of its industry peers.
- JNJ's Return On Invested Capital of 14.16% is amongst the best of the industry. JNJ outperforms 93.72% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- The Profit Margin of JNJ (27.26%) is better than 92.67% of its industry peers.
- JNJ's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 27.00%, JNJ belongs to the best of the industry, outperforming 92.15% of the companies in the same industry.
- JNJ's Operating Margin has improved in the last couple of years.
- The Gross Margin of JNJ (68.14%) is better 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 Rank | Sector 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%
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.
2.2 Solvency
- JNJ has an Altman-Z score of 5.17. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 5.17, JNJ is doing good in the industry, outperforming 75.39% of the companies in the same industry.
- The Debt to FCF ratio of JNJ is 2.34, which is a good value as it means it would take JNJ, 2.34 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 2.34, JNJ belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that JNJ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.55, JNJ is doing worse than 64.40% of the companies in the same industry.
- 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 | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.44
WACC9.81%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying 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.
- The Quick ratio of JNJ (0.80) is worse than 82.20% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
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.
- JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
- JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
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
- JNJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.17% yearly.
- Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.20 indicates a rather expensive valuation of JNJ.
- Based on the Price/Earnings ratio, JNJ is valued cheaper than 80.10% of the companies in the same industry.
- JNJ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 20.74 indicates a rather expensive valuation of JNJ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 78.53% of the companies listed in the same industry.
- JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 81.68% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, JNJ is valued cheaper than 82.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 18.15 |
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)3.16
PEG (5Y)3.64
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.29%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.61, JNJ pays a better dividend. On top of this JNJ pays more dividend than 92.67% of the companies listed in the same industry.
- JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
- 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
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 2Y7.63%
EPS Next 3Y7.31%
NYSE:JNJ (2/6/2026, 2:07:10 PM)
239.73
+1.94 (+0.82%)
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 Change-2.14%
Ins Owners0.03%
Ins Owner Change0.12%
Market Cap577.58B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target215.29 (-10.19%)
Short Float %0.89%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-24 2026-02-24 (1.3)
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)1.15%
PT rev (3m)5.52%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 20.74 | ||
| P/S | 6.27 | ||
| P/FCF | 29.47 | ||
| P/OCF | 23.86 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.15 |
EPS(TTM)10.8
EY4.51%
EPS(NY)11.56
Fwd EY4.82%
FCF(TTM)8.13
FCFY3.39%
OCF(TTM)10.05
OCFY4.19%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)3.16
PEG (5Y)3.64
Graham Number89.42
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.17 |
F-Score4
WACC9.81%
ROIC/WACC1.44
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 Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
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%.