JOHNSON & JOHNSON (JNJ) Fundamental Analysis & Valuation

NYSE:JNJ • US4781601046

Current stock price

225.34 USD
-2.16 (-0.95%)
At close:
225.34 USD
0 (0%)
After Hours:

This JNJ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. JNJ Profitability Analysis

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.
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 better Return On Assets (13.46%) than 94.24% of its industry peers.
  • Looking at the Return On Equity, with a value of 32.87%, JNJ belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
  • JNJ has a Return On Invested Capital of 15.05%. This is amongst the best in the industry. JNJ outperforms 93.72% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for JNJ is above the industry average of 13.10%.
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROIC 15.05%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)15.58%
ROIC(5y)14.64%
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

  • Looking at the Profit Margin, with a value of 28.46%, JNJ belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
  • JNJ's Profit Margin has improved in the last couple of years.
  • JNJ has a Operating Margin of 28.55%. This is amongst the best in the industry. JNJ outperforms 94.24% of its industry peers.
  • JNJ's Operating Margin has improved in the last couple of years.
  • JNJ has a better Gross Margin (67.98%) than 75.92% 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 28.55%
PM (TTM) 28.46%
GM 67.98%
OM growth 3Y-0.34%
OM growth 5Y3.01%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.62%
GM growth 5Y0.68%
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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6

2. JNJ Health Analysis

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.
  • 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.
  • The debt/assets ratio for JNJ is higher compared to a year ago.
JNJ Yearly Shares OutstandingJNJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 50B 100B 150B

2.2 Solvency

  • JNJ has an Altman-Z score of 4.91. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • JNJ's Altman-Z score of 4.91 is fine compared to the rest of the industry. JNJ outperforms 73.30% of its industry peers.
  • The Debt to FCF ratio of JNJ is 2.43, which is a good value as it means it would take JNJ, 2.43 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 2.43, JNJ belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
  • A Debt/Equity ratio of 0.56 indicates that JNJ is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.56, JNJ is doing worse than 69.11% 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 RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Altman-Z 4.91
ROIC/WACC1.54
WACC9.77%
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 2025 20B 40B 60B 80B

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 Current ratio of 1.03. This is amonst the worse of the industry: JNJ underperforms 85.86% of its industry peers.
  • A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.77, JNJ is not doing good in the industry: 87.43% of the companies in the same industry are doing better.
  • 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 1.03
Quick Ratio 0.77
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 2025 20B 40B 60B

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

5

3. JNJ Growth Analysis

3.1 Past

  • JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.77%.
  • 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.
  • The Revenue has been growing slightly by 7.87% in the past year.
  • 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)6.77%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%-2.53%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.91%

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 9.75% yearly.
  • JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y9.75%
Revenue Next Year7.43%
Revenue Next 2Y6.86%
Revenue Next 3Y6.73%
Revenue Next 5Y6.8%

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.
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. JNJ Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.00, JNJ is valued on the expensive side.
  • 81.68% of the companies in the same industry are more expensive than JNJ, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.35. JNJ is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 17.76, JNJ is valued on the expensive side.
  • 80.10% of the companies in the same industry are more expensive than JNJ, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.23, JNJ is valued a bit cheaper.
Industry RankSector Rank
PE 21
Fwd PE 17.76
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 80.63% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, JNJ is valued cheaper than 83.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.55
EV/EBITDA 16.24
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)2.66
PEG (5Y)3.44
EPS Next 2Y8.38%
EPS Next 3Y8.73%

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

8

5. JNJ Dividend Analysis

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.32%.
  • Compared to an average industry Dividend Yield of 0.73, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.19% 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 RankSector Rank
Dividend Yield 2.32%

5.2 History

  • On average, the dividend of JNJ grows each year by 7.68%, which is quite nice.
  • 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)7.68%
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

  • 46.19% of the earnings are spent on dividend by JNJ. This is a bit on the high side, but may be sustainable.
  • JNJ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.19%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
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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JNJ Fundamentals: All Metrics, Ratios and Statistics

JOHNSON & JOHNSON

NYSE:JNJ (4/27/2026, 8:04:00 PM)

After market: 225.34 0 (0%)

225.34

-2.16 (-0.95%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)04-14
Earnings (Next)07-14
Inst Owners75.61%
Inst Owner Change-3.46%
Ins Owners0.04%
Ins Owner Change4.13%
Market Cap542.76B
Revenue(TTM)96.36B
Net Income(TTM)26.80B
Analysts76.25
Price Target244.99 (8.72%)
Short Float %0.93%
Short Ratio2.67
Dividend
Industry RankSector Rank
Dividend Yield 2.32%
Yearly Dividend5.14
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years34
Div Non Decr Years34
Ex-Date05-26
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-0.13%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.13%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.84%
EPS beat(12)10
Avg EPS beat(12)3.23%
EPS beat(16)14
Avg EPS beat(16)3.09%
Revenue beat(2)2
Avg Revenue beat(2)0.35%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.67%
Revenue beat(4)4
Avg Revenue beat(4)1.04%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-4.44%
PT rev (1m)3.67%
PT rev (3m)13.8%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE 21
Fwd PE 17.76
P/S 5.76
P/FCF 27.55
P/OCF 22.13
P/B 6.66
P/tB N/A
EV/EBITDA 16.24
EPS(TTM)10.73
EY4.76%
EPS(NY)12.69
Fwd EY5.63%
FCF(TTM)8.18
FCFY3.63%
OCF(TTM)10.18
OCFY4.52%
SpS39.11
BVpS33.86
TBVpS-7.32
PEG (NY)2.66
PEG (5Y)3.44
Graham Number90.4074 (-59.88%)
Profitability
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROCE 18.53%
ROIC 15.05%
ROICexc 17.35%
ROICexgc 70.6%
OM 28.55%
PM (TTM) 28.46%
GM 67.98%
FCFM 20.91%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)15.58%
ROIC(5y)14.64%
ROICexc(3y)18.74%
ROICexc(5y)17.83%
ROICexgc(3y)70.93%
ROICexgc(5y)71.82%
ROCE(3y)18.94%
ROCE(5y)17.92%
ROICexgc growth 3Y-2.46%
ROICexgc growth 5Y-5.65%
ROICexc growth 3Y1.88%
ROICexc growth 5Y1.69%
OM growth 3Y-0.34%
OM growth 5Y3.01%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.62%
GM growth 5Y0.68%
F-Score4
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Debt/EBITDA 1.34
Cap/Depr 64.4%
Cap/Sales 5.13%
Interest Coverage 7
Cash Conversion 71.32%
Profit Quality 73.49%
Current Ratio 1.03
Quick Ratio 0.77
Altman-Z 4.91
F-Score4
WACC9.77%
ROIC/WACC1.54
Cap/Depr(3y)61.79%
Cap/Depr(5y)58.46%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.02%
Profit Quality(3y)88.82%
Profit Quality(5y)91.38%
High Growth Momentum
Growth
EPS 1Y (TTM)6.77%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%-2.53%
EPS Next Y7.91%
EPS Next 2Y8.38%
EPS Next 3Y8.73%
EPS Next 5Y9.75%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.91%
Revenue Next Year7.43%
Revenue Next 2Y6.86%
Revenue Next 3Y6.73%
Revenue Next 5Y6.8%
EBIT growth 1Y15.95%
EBIT growth 3Y5.24%
EBIT growth 5Y5.76%
EBIT Next Year23.27%
EBIT Next 3Y11.78%
EBIT Next 5Y9.67%
FCF growth 1Y-0.73%
FCF growth 3Y4.65%
FCF growth 5Y-0.49%
OCF growth 1Y1.09%
OCF growth 3Y4.99%
OCF growth 5Y0.83%

JOHNSON & JOHNSON / JNJ Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for JOHNSON & JOHNSON?

ChartMill assigns a fundamental rating of 7 / 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.


How profitable is JOHNSON & JOHNSON (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.


Can you provide the expected EPS growth for JNJ stock?

The Earnings per Share (EPS) of JOHNSON & JOHNSON (JNJ) is expected to grow by 7.91% in the next year.