JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNJ - US4781601046 - Common Stock
207.63 USD
-0.15 (-0.07%)
207.63 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to JNJ. JNJ was compared to 191 industry peers in the Pharmaceuticals industry. While JNJ has a great profitability rating, there are some minor concerns on its financial health. JNJ is not valued too expensively and it also shows a decent growth rate. Finally JNJ also has an excellent dividend rating. These ratings would make JNJ suitable 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
The Return On Assets of JNJ (13.03%) is better than 93.19% of its industry peers.
JNJ's Return On Equity of 31.69% is amongst the best of the industry. JNJ outperforms 93.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.68%, JNJ belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is above the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.68% |
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
Looking at the Profit Margin, with a value of 27.26%, JNJ belongs to the top of the industry, outperforming 92.67% of the companies in the same industry.
In the last couple of years the Profit Margin of JNJ has declined.
Looking at the Operating Margin, with a value of 27.00%, JNJ belongs to the top of the industry, outperforming 92.67% of the companies in the same industry.
In the last couple of years the Operating Margin of JNJ has grown nicely.
With a decent Gross Margin value of 68.14%, JNJ is doing good in the industry, outperforming 76.96% of the companies in the same industry.
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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
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
JNJ has an Altman-Z score of 4.79. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.79, JNJ is in the better half of the industry, outperforming 73.30% 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 92.67% 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 65.97% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.52
WACC9.67%
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.
With a Current ratio value of 1.07, JNJ is not doing good in the industry: 83.25% of the companies in the same industry are doing better.
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
JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
3.2 Future
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.68% yearly.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
JNJ is valuated rather expensively with a Price/Earnings ratio of 20.00.
81.15% of the companies in the same industry are more expensive than JNJ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, JNJ is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.81, JNJ is valued on the expensive side.
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.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (23.46), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 81.15% 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 | 25.53 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)7.02
EPS Next 2Y8.02%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, 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 94.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
JNJ pays out 48.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
207.63
-0.15 (-0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change0.03%
Ins Owners0.03%
Ins Owner Change-0.56%
Market Cap500.24B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target212.83 (2.5%)
Short Float %0.99%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)3.74%
PT rev (3m)16.63%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 17.81 | ||
| P/S | 5.43 | ||
| P/FCF | 25.53 | ||
| P/OCF | 20.67 | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.9 |
EPS(TTM)10.38
EY5%
EPS(NY)11.66
Fwd EY5.61%
FCF(TTM)8.13
FCFY3.92%
OCF(TTM)10.05
OCFY4.84%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.03
PEG (5Y)7.02
Graham Number87.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.68% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 69.32% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
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%
ROICexgc growth 3Y1.2%
ROICexgc 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-Score5
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 | 4.79 |
F-Score5
WACC9.67%
ROIC/WACC1.52
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)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
EPS Next Y9.85%
EPS Next 2Y8.02%
EPS Next 3Y7.82%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.61%
Revenue Next 2Y5.47%
Revenue Next 3Y5.32%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.55%
EBIT Next 3Y13.35%
EBIT Next 5Y8.85%
FCF growth 1Y24.53%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y19.36%
OCF growth 3Y1.2%
OCF growth 5Y0.72%
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 for 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.
What is the financial health of JOHNSON & JOHNSON (JNJ) stock?
The financial health rating of JOHNSON & JOHNSON (JNJ) is 6 / 10.
How sustainable is the dividend of JOHNSON & JOHNSON (JNJ) stock?
The dividend rating of JOHNSON & JOHNSON (JNJ) is 7 / 10 and the dividend payout ratio is 48.7%.