JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - NYSE:JNJ - US4781601046 - Common Stock
192.47 USD
-0.47 (-0.24%)
192.47 USD
0 (0%)
JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. While JNJ has a great profitability rating, there are some minor concerns on its financial health. JNJ has a decent growth rate and is not valued too expensively.
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
The Return On Assets of JNJ (11.72%) is better than 93.72% of its industry peers.
Looking at the Return On Equity, with a value of 28.88%, JNJ belongs to the top of the industry, outperforming 94.76% of the companies in the same industry.
JNJ has a better Return On Invested Capital (13.62%) than 91.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 15.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.62% |
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 25.00%, JNJ belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
JNJ's Profit Margin has declined in the last couple of years.
JNJ has a better Operating Margin (25.69%) than 92.67% of its industry peers.
JNJ's Operating Margin has improved in the last couple of years.
JNJ has a better Gross Margin (67.97%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% |
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.
The number of shares outstanding for JNJ remains at a similar level compared to 1 year ago.
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 4.49 indicates that JNJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.49, JNJ is doing good in the industry, outperforming 76.96% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.74, JNJ belongs to the top of the industry, outperforming 90.58% of the companies in the same industry.
JNJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of JNJ (0.61) is worse than 65.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.5
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.01 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ has a worse Current ratio (1.01) than 81.68% of its industry peers.
JNJ has a Quick Ratio of 1.01. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
JNJ has a worse Quick ratio (0.76) than 84.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% 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 2.85% on average per year.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
The Revenue has been growing slightly by 1.60% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 4.82% on average per year.
EPS Next Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
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
With a Price/Earnings ratio of 18.54, JNJ is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 84.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (27.67), we can say JNJ is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.51, JNJ is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 79.58% 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 (23.33), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 82.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 81.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.99 | ||
| EV/EBITDA | 15.48 |
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)1.87
PEG (5Y)6.5
EPS Next 2Y8.02%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, JNJ has a reasonable but not impressive dividend return.
JNJ's Dividend Yield is rather good when compared to the industry average which is at 6.88. JNJ pays more dividend than 93.72% of the companies in the same industry.
JNJ's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y8.02%
EPS Next 3Y7.7%
192.47
-0.47 (-0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner Change-0.23%
Ins Owners0.04%
Ins Owner Change-0.1%
Market Cap463.53B
Revenue(TTM)92.15B
Net Income(TTM)22.66B
Analysts74.84
Price Target183.86 (-4.47%)
Short Float %0.92%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)0.76%
PT rev (3m)6.06%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 16.51 | ||
| P/S | 5.11 | ||
| P/FCF | 24.99 | ||
| P/OCF | 20.13 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.48 |
EPS(TTM)10.38
EY5.39%
EPS(NY)11.66
Fwd EY6.06%
FCF(TTM)7.7
FCFY4%
OCF(TTM)9.56
OCFY4.97%
SpS37.63
BVpS32.58
TBVpS-8.09
PEG (NY)1.87
PEG (5Y)6.5
Graham Number87.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.73% | ||
| ROIC | 13.62% | ||
| ROICexc | 15.61% | ||
| ROICexgc | 65.14% | ||
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% | ||
| 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%
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.91% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.49 |
F-Score4
WACC9.06%
ROIC/WACC1.5
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 Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
EBIT growth 1Y-6.56%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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%