JOHNSON & JOHNSON (JNJ)
US4781601046 - Common Stock
Overall JNJ gets a fundamental rating of 6 out of 10. We evaluated JNJ against 194 industry peers in the Pharmaceuticals industry. JNJ has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JNJ was profitable.
JNJ had a positive operating cash flow in the past year.
JNJ had positive earnings in each of the past 5 years.
JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JNJ has a better Return On Assets (8.24%) than 92.19% of its industry peers.
JNJ has a Return On Equity of 20.93%. This is amongst the best in the industry. JNJ outperforms 93.23% of its industry peers.
The Return On Invested Capital of JNJ (16.28%) is better than 93.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNJ is significantly below the industry average of 42.22%.
The last Return On Invested Capital (16.28%) for JNJ is above the 3 year average (14.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROIC | 16.28% |
ROA(3y)14.01%
ROA(5y)12%
ROE(3y)34.23%
ROE(5y)30.27%
ROIC(3y)14.68%
ROIC(5y)14.11%
1.3 Margins
JNJ's Profit Margin of 16.74% is amongst the best of the industry. JNJ outperforms 91.15% of its industry peers.
In the last couple of years the Profit Margin of JNJ has grown nicely.
Looking at the Operating Margin, with a value of 27.57%, JNJ belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
JNJ's Operating Margin has improved in the last couple of years.
JNJ has a Gross Margin of 69.16%. This is in the better half of the industry: JNJ outperforms 72.92% of its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% |
OM growth 3Y4.66%
OM growth 5Y2.82%
PM growth 3Y32.32%
PM growth 5Y17.1%
GM growth 3Y1.74%
GM growth 5Y0.67%
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.
JNJ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
The debt/assets ratio for JNJ has been reduced compared to a year ago.
2.2 Solvency
JNJ has an Altman-Z score of 4.25. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
JNJ's Altman-Z score of 4.25 is fine compared to the rest of the industry. JNJ outperforms 78.13% of its industry peers.
The Debt to FCF ratio of JNJ is 1.72, which is an excellent value as it means it would take JNJ, only 1.72 years of fcf income to pay off all of its debts.
JNJ's Debt to FCF ratio of 1.72 is amongst the best of the industry. JNJ outperforms 95.31% of its industry peers.
JNJ has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of JNJ (0.47) is worse than 64.06% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.25 |
ROIC/WACC1.79
WACC9.08%
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.
JNJ has a worse Current ratio (1.03) than 84.38% of its industry peers.
A Quick Ratio of 0.79 indicates that JNJ may have some problems paying its short term obligations.
JNJ has a Quick ratio of 0.79. This is amonst the worse of the industry: JNJ underperforms 85.42% 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 | 1.03 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.38%.
Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 4.98% on average per year.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
The Revenue has been growing slightly by 0.86% on average over the past years.
EPS 1Y (TTM)-2.38%
EPS 3Y9.11%
EPS 5Y4.98%
EPS Q2Q%-9.02%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y1.03%
Revenue growth 5Y0.86%
Sales Q2Q%5.25%
3.2 Future
The Earnings Per Share is expected to grow by 4.94% on average over the next years.
The Revenue is expected to grow by 4.64% on average over the next years.
EPS Next Y-3.67%
EPS Next 2Y1.33%
EPS Next 3Y2.77%
EPS Next 5Y4.94%
Revenue Next Year4.73%
Revenue Next 2Y3.78%
Revenue Next 3Y3.81%
Revenue Next 5Y4.64%
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 stable.
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
With a Price/Earnings ratio of 15.19, JNJ is valued correctly.
JNJ's Price/Earnings ratio is rather cheap when compared to the industry. JNJ is cheaper than 88.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (28.96), we can say JNJ is valued slightly cheaper.
JNJ is valuated correctly with a Price/Forward Earnings ratio of 14.52.
Based on the Price/Forward Earnings ratio, JNJ is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (23.82), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
84.90% of the companies in the same industry are more expensive than JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.05 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.05
EPS Next 2Y1.33%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
JNJ's Dividend Yield is rather good when compared to the industry average which is at 4.28. JNJ pays more dividend than 93.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of JNJ is nicely growing with an annual growth rate of 9.96%!
JNJ has paid a dividend for at least 10 years, which is a reliable track record.
JNJ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.96%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
JNJ pays out 79.71% of its income as dividend. This is not a sustainable payout ratio.
JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.71%
EPS Next 2Y1.33%
EPS Next 3Y2.77%
JOHNSON & JOHNSON
NYSE:JNJ (11/21/2024, 8:04:00 PM)
After market: 155.7 +0.2 (+0.13%)155.5
+2.39 (+1.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap374.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 14.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 20.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.57% | ||
| PM (TTM) | 16.74% | ||
| GM | 69.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.38%
EPS 3Y9.11%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.77%
Revenue growth 3Y1.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y