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 52 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.
In the past year 1JNJ had a positive cash flow from operations.
In the past 5 years 1JNJ has always been profitable.
In the past 5 years 1JNJ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1JNJ (11.26%) is better than 78.85% of its industry peers.
1JNJ has a better Return On Equity (27.92%) than 78.85% of its industry peers.
1JNJ has a Return On Invested Capital of 13.67%. This is in the better half of the industry: 1JNJ outperforms 75.00% of its industry peers.
1JNJ had an Average Return On Invested Capital over the past 3 years of 15.41%. This is in line with the industry average of 15.20%.
| 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's Profit Margin of 24.41% is amongst the best of the industry. 1JNJ outperforms 88.46% of its industry peers.
In the last couple of years the Profit Margin of 1JNJ has declined.
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.
The Gross Margin of 1JNJ (68.34%) is comparable to the rest of the 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.
The number of shares outstanding for 1JNJ has been reduced compared to 5 years ago.
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
1JNJ has an Altman-Z score of 4.07. 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 4.07, 1JNJ is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
The Debt to FCF ratio of 1JNJ is 2.57, which is a good value as it means it would take 1JNJ, 2.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.57, 1JNJ belongs to the top of the industry, outperforming 80.77% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.29
WACC10.57%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 1JNJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, 1JNJ is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
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 of 1.03. This is comparable to the rest of the industry: 1JNJ outperforms 59.62% of its industry peers.
| 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 -4.58% in the last year.
Measured over the past 5 years, 1JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
The Revenue has been growing slightly by 4.68% in the past year.
1JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
3.2 Future
The Earnings Per Share is expected to grow by 5.89% on average over the next years.
Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
Revenue Next 5Y3.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.39, which indicates a correct valuation of 1JNJ.
Compared to the rest of the industry, the Price/Earnings ratio of 1JNJ indicates a somewhat cheap valuation: 1JNJ is cheaper than 63.46% of the companies listed in the same industry.
1JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.55 indicates a correct valuation of 1JNJ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1JNJ is on the same level as its industry peers.
1JNJ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
1JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
65.38% of the companies in the same industry are more expensive than 1JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1JNJ does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1JNJ may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)5.75
EPS Next 2Y6.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of 1JNJ is nicely growing with an annual growth rate of 9.24%!
Dividend Growth(5Y)9.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1JNJ pays out 54.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
1JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.76%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
BIT:1JNJ (7/21/2025, 7:00:00 PM)
140.64
+6.98 (+5.22%)
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 Cap338.39B
Analysts72.41
Price Target149.13 (6.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend4.22
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)-1.66%
PT rev (3m)-6.82%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 14.55 | ||
| P/S | 4.41 | ||
| P/FCF | 19.35 | ||
| P/OCF | 15.91 | ||
| P/B | 5.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.78 |
EPS(TTM)8.58
EY6.1%
EPS(NY)9.67
Fwd EY6.87%
FCF(TTM)7.27
FCFY5.17%
OCF(TTM)8.84
OCFY6.29%
SpS31.87
BVpS27.87
TBVpS-1.11
PEG (NY)2.2
PEG (5Y)5.75
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 | 4.07 |
F-Score5
WACC10.57%
ROIC/WACC1.29
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)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year3.01%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
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%