JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - US4781601046 - Common Stock
151.96 EUR
+4.4 (+2.98%)
We assign a fundamental rating of 5 out of 10 to 1JNJ. 1JNJ was compared to 50 industry peers in the Pharmaceuticals industry. While 1JNJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1JNJ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1JNJ had positive earnings in the past year.
1JNJ had a positive operating cash flow in the past year.
In the past 5 years 1JNJ has always been profitable.
1JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1JNJ has a better Return On Assets (11.72%) than 84.00% of its industry peers.
With an excellent Return On Equity value of 28.88%, 1JNJ belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.57%, 1JNJ is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.57% |
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 25.00%. This is amongst the best in the industry. 1JNJ outperforms 86.00% of its industry peers.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ's Operating Margin of 25.61% is fine compared to the rest of the industry. 1JNJ outperforms 72.00% of its industry peers.
1JNJ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 67.98%, 1JNJ perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
1JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% |
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
1JNJ 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, 1JNJ has about the same amount of shares outstanding.
Compared to 5 years ago, 1JNJ has less shares outstanding
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.30 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
1JNJ's Altman-Z score of 4.30 is fine compared to the rest of the industry. 1JNJ outperforms 66.00% of its industry peers.
1JNJ has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as 1JNJ would need 2.74 years to pay back of all of its debts.
1JNJ's Debt to FCF ratio of 2.74 is fine compared to the rest of the industry. 1JNJ outperforms 72.00% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 1JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of 1JNJ (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.31
WACC10.4%
2.3 Liquidity
1JNJ has a Current Ratio of 1.01. 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 worse Current ratio (1.01) than 72.00% of its industry peers.
1JNJ has a Quick Ratio of 1.01. This is a bad value and indicates that 1JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, 1JNJ is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
1JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.58%.
1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
Looking at the last year, 1JNJ shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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
Based on estimates for the next years, 1JNJ will show a small growth in Earnings Per Share. The EPS will grow by 6.46% on average per year.
Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue Next Year5.18%
Revenue Next 2Y4.88%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
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
With a Price/Earnings ratio of 17.77, 1JNJ is valued on the expensive side.
1JNJ's Price/Earnings is on the same level as the industry average.
1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.06.
With a Price/Forward Earnings ratio of 15.49, 1JNJ is valued correctly.
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 valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1JNJ.
1JNJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.08 | ||
| EV/EBITDA | 14.36 |
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)1.81
PEG (5Y)6.23
EPS Next 2Y7.16%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, 1JNJ has a reasonable but not impressive dividend return.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.06.
1JNJ's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
1JNJ pays out 53.34% 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.
DP53.34%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
BIT:1JNJ (9/5/2025, 7:00:00 PM)
151.96
+4.4 (+2.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners73.87%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap365.97B
Analysts72.41
Price Target155.16 (2.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend4.23
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.04%
PT rev (3m)0.79%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)4.49%
Revenue NY rev (1m)2.11%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 15.49 | ||
| P/S | 4.72 | ||
| P/FCF | 23.08 | ||
| P/OCF | 18.59 | ||
| P/B | 5.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.36 |
EPS(TTM)8.55
EY5.63%
EPS(NY)9.81
Fwd EY6.45%
FCF(TTM)6.58
FCFY4.33%
OCF(TTM)8.17
OCFY5.38%
SpS32.17
BVpS27.86
TBVpS-6.91
PEG (NY)1.81
PEG (5Y)6.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.67% | ||
| ROIC | 13.57% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 64.93% | ||
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% | ||
| 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%
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.3 |
F-Score4
WACC10.4%
ROIC/WACC1.31
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 Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year5.18%
Revenue Next 2Y4.88%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
EBIT growth 1Y-6.86%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.86%
EBIT Next 3Y12.85%
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%