JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Euronext Milan - US4781601046 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1JNJ. 1JNJ was compared to 50 industry peers in the Pharmaceuticals industry. 1JNJ has an average financial health and profitability rating. 1JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1JNJ was profitable.
1JNJ had a positive operating cash flow in the past year.
1JNJ had positive earnings in each of the past 5 years.
1JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1JNJ (11.26%) is better than 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 27.92%, 1JNJ is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
1JNJ's Return On Invested Capital of 13.67% is fine compared to the rest of the industry. 1JNJ outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1JNJ is in line with the industry average of 14.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROIC | 13.67% |
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
1JNJ has a Profit Margin of 24.41%. This is amongst the best in the industry. 1JNJ outperforms 86.54% of its industry peers.
1JNJ's Profit Margin has declined in the last couple of years.
1JNJ's Operating Margin of 26.16% is fine compared to the rest of the industry. 1JNJ outperforms 73.08% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
Looking at the Gross Margin, with a value of 68.34%, 1JNJ is in line with its industry, outperforming 44.23% of the companies in the same industry.
In the last couple of years the Gross Margin of 1JNJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% |
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), 1JNJ is creating some value.
The number of shares outstanding for 1JNJ remains at a similar level compared to 1 year ago.
1JNJ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1JNJ has a worse debt to assets ratio.
2.2 Solvency
1JNJ has an Altman-Z score of 4.08. This indicates that 1JNJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.08, 1JNJ is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
1JNJ has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as 1JNJ would need 2.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.57, 1JNJ is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that 1JNJ is somewhat dependend on debt financing.
1JNJ has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.33
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 1JNJ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, 1JNJ is doing worse than 69.23% of the companies in the same industry.
1JNJ has a Quick Ratio of 1.03. This is a normal value and indicates that 1JNJ is financially healthy and should not expect problems in meeting its short term obligations.
1JNJ has a Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for 1JNJ have decreased by -3.92% in the last year.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
1JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.30%.
1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
3.2 Future
Based on estimates for the next years, 1JNJ will show a small growth in Earnings Per Share. The EPS will grow by 5.89% on average per year.
1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
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
Based on the Price/Earnings ratio of 14.93, the valuation of 1JNJ can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as 1JNJ.
When comparing the Price/Earnings ratio of 1JNJ to the average of the S&P500 Index (26.98), we can say 1JNJ is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of 1JNJ.
1JNJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. 1JNJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
1JNJ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1JNJ is valued a bit cheaper than the industry average as 63.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 11.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)5.24
EPS Next 2Y6.02%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 3.03, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
On average, the dividend of 1JNJ grows each year by 9.24%, which is quite nice.
Dividend Growth(5Y)9.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.76% of the earnings are spent on dividend by 1JNJ. This is a bit on the high side, but may be sustainable.
The dividend of 1JNJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.76%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
BIT:1JNJ (6/23/2025, 7:00:00 PM)
130.32
-5.64 (-4.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap313.56B
Analysts72.41
Price Target151.22 (16.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend4.27
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.68%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.57%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)11
Avg EPS beat(12)3.64%
EPS beat(16)14
Avg EPS beat(16)4.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)0.53%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-6.08%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-1.77%
PT rev (3m)-8.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.36 | ||
| P/S | 4.04 | ||
| P/FCF | 17.72 | ||
| P/OCF | 14.57 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)8.73
EY6.7%
EPS(NY)9.75
Fwd EY7.48%
FCF(TTM)7.35
FCFY5.64%
OCF(TTM)8.95
OCFY6.86%
SpS32.24
BVpS28.19
TBVpS-1.12
PEG (NY)2.05
PEG (5Y)5.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROCE | 17.09% | ||
| ROIC | 13.67% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 72.98% | ||
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% | ||
| FCFM | 22.8% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 93.4% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.08 |
F-Score5
WACC10.31%
ROIC/WACC1.33
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
FCF growth 1Y25.69%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y21.06%
OCF growth 3Y1.2%
OCF growth 5Y0.72%