JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Euronext Milan - US4781601046 - Common Stock - Currency: EUR
Taking everything into account, 1JNJ scores 5 out of 10 in our fundamental rating. 1JNJ was compared to 51 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of 1JNJ get a neutral evaluation. Nothing too spectacular is happening here. 1JNJ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1JNJ was profitable.
1JNJ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.81%, 1JNJ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.68%, 1JNJ is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
The Return On Invested Capital of 1JNJ (14.95%) is better than 74.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1JNJ is in line with the industry average of 15.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 19.68% | ||
| ROIC | 14.95% |
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
With a decent Profit Margin value of 15.84%, 1JNJ is doing good in the industry, outperforming 76.47% of the companies in the same industry.
1JNJ's Profit Margin has declined in the last couple of years.
1JNJ's Operating Margin of 26.11% is fine compared to the rest of the industry. 1JNJ outperforms 74.51% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
1JNJ has a Gross Margin (69.11%) which is in line with its industry peers.
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 | 26.11% | ||
| PM (TTM) | 15.84% | ||
| GM | 69.11% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1JNJ is still creating some value.
Compared to 1 year ago, 1JNJ has about the same amount of shares outstanding.
1JNJ has less shares outstanding than it did 5 years ago.
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
1JNJ has an Altman-Z score of 4.23. 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 4.23, 1JNJ is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Debt to FCF ratio of 1JNJ is 1.85, which is an excellent value as it means it would take 1JNJ, only 1.85 years of fcf income to pay off all of its debts.
1JNJ's Debt to FCF ratio of 1.85 is amongst the best of the industry. 1JNJ outperforms 90.20% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that 1JNJ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.49, 1JNJ is doing good in the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.45
WACC10.29%
2.3 Liquidity
1JNJ has a Current Ratio of 1.11. 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 Current ratio of 1.11. This is in the lower half of the industry: 1JNJ underperforms 74.51% of its industry peers.
A Quick Ratio of 0.86 indicates that 1JNJ may have some problems paying its short term obligations.
1JNJ has a Quick ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
1JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
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 4.30% 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)-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 5.39% on average per year.
1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y6.71%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
EPS Next 5Y5.39%
Revenue Next Year2.25%
Revenue Next 2Y3.57%
Revenue Next 3Y4.06%
Revenue Next 5Y3.54%
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
1JNJ is valuated correctly with a Price/Earnings ratio of 15.40.
1JNJ's Price/Earnings ratio is a bit cheaper when compared to the industry. 1JNJ is cheaper than 64.71% of the companies in the same industry.
1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
The Price/Forward Earnings ratio is 13.85, which indicates a correct valuation of 1JNJ.
1JNJ's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, 1JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
1JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1JNJ indicates a somewhat cheap valuation: 1JNJ is cheaper than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 11.97 |
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 decent profitability rating of 1JNJ may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)5.4
EPS Next 2Y5.78%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, 1JNJ has a reasonable but not impressive dividend return.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.18.
Compared to an average S&P500 Dividend Yield of 2.41, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 84.05% of its income as dividend. This is not a sustainable payout ratio.
1JNJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.05%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
BIT:1JNJ (5/12/2025, 7:00:00 PM)
139.36
+1.04 (+0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners73.73%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap335.84B
Analysts73.57
Price Target160.04 (14.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend4.32
Dividend Growth(5Y)9.24%
DP84.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.48%
Min EPS beat(2)0.68%
Max EPS beat(2)8.28%
EPS beat(4)4
Avg EPS beat(4)3.52%
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)3.4%
EPS beat(16)14
Avg EPS beat(16)4.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-6.27%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-3.19%
PT rev (3m)-6.72%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.85 | ||
| P/S | 4.2 | ||
| P/FCF | 18.8 | ||
| P/OCF | 15.37 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.97 |
EPS(TTM)9.05
EY6.49%
EPS(NY)10.07
Fwd EY7.22%
FCF(TTM)7.41
FCFY5.32%
OCF(TTM)9.07
OCFY6.51%
SpS33.19
BVpS26.71
TBVpS-3.86
PEG (NY)2.3
PEG (5Y)5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 19.68% | ||
| ROCE | 17.87% | ||
| ROIC | 14.95% | ||
| ROICexc | 18.3% | ||
| ROICexgc | 72.38% | ||
| OM | 26.11% | ||
| PM (TTM) | 15.84% | ||
| GM | 69.11% | ||
| FCFM | 22.34% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 60.28% | ||
| Cap/Sales | 4.98% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 79.49% | ||
| Profit Quality | 141.06% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.23 |
F-Score4
WACC10.29%
ROIC/WACC1.45
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 Y6.71%
EPS Next 2Y5.78%
EPS Next 3Y6.08%
EPS Next 5Y5.39%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.25%
Revenue Next 2Y3.57%
Revenue Next 3Y4.06%
Revenue Next 5Y3.54%
EBIT growth 1Y-2.91%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year20.06%
EBIT Next 3Y12.36%
EBIT Next 5Y7.4%
FCF growth 1Y8.74%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y6.47%
OCF growth 3Y1.2%
OCF growth 5Y0.72%