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. While 1JNJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1JNJ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1JNJ had positive earnings in the past year.
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
1JNJ has a better Return On Assets (11.72%) than 80.39% of its industry peers.
1JNJ's Return On Equity of 28.88% is amongst the best of the industry. 1JNJ outperforms 80.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.57%, 1JNJ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1JNJ is in line with the industry average of 14.63%.
| 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's Profit Margin of 25.00% is amongst the best of the industry. 1JNJ outperforms 88.24% of its industry peers.
1JNJ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.61%, 1JNJ is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
1JNJ has a Gross Margin of 67.98%. This is comparable to the rest of the industry: 1JNJ outperforms 47.06% of its industry peers.
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.
1JNJ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1JNJ has been reduced compared to 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 4.19. This indicates that 1JNJ is financially healthy and has little risk of bankruptcy at the moment.
1JNJ's Altman-Z score of 4.19 is fine compared to the rest of the industry. 1JNJ outperforms 60.78% 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 has a better Debt to FCF ratio (2.74) than 76.47% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 1JNJ is somewhat dependend on debt financing.
1JNJ has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: 1JNJ outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.33
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1JNJ should not have too much problems paying its short term obligations.
1JNJ has a worse Current ratio (1.01) than 70.59% of its industry peers.
A Quick Ratio of 0.76 indicates that 1JNJ may have some problems paying its short term obligations.
1JNJ has a Quick ratio of 0.76. This is in the lower half of the industry: 1JNJ underperforms 72.55% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
Looking at the last year, 1JNJ shows a small growth in Revenue. The Revenue has grown by 4.68% in the last 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
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 Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue Next Year5.2%
Revenue Next 2Y4.9%
Revenue Next 3Y4.76%
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.
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 rather expensively with a Price/Earnings ratio of 17.18.
1JNJ's Price/Earnings ratio is in line with the industry average.
1JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of 1JNJ.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1JNJ to the average of the S&P500 Index (34.61), we can say 1JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1JNJ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1JNJ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.32 | ||
| EV/EBITDA | 13.71 |
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)2.3
PEG (5Y)6.02
EPS Next 2Y6.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.39, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
53.34% of the earnings are spent on dividend by 1JNJ. 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 2Y6.17%
EPS Next 3Y6.44%
BIT:1JNJ (8/12/2025, 7:00:00 PM)
147.56
+3.68 (+2.56%)
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 Cap355.37B
Analysts72.41
Price Target152.95 (3.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend4.22
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)1.15%
PT rev (3m)-4.43%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)2.41%
Revenue NQ rev (3m)4.49%
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 15.26 | ||
| P/S | 4.57 | ||
| P/FCF | 22.32 | ||
| P/OCF | 17.98 | ||
| P/B | 5.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.71 |
EPS(TTM)8.59
EY5.82%
EPS(NY)9.67
Fwd EY6.55%
FCF(TTM)6.61
FCFY4.48%
OCF(TTM)8.21
OCFY5.56%
SpS32.31
BVpS27.97
TBVpS-6.94
PEG (NY)2.3
PEG (5Y)6.02
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 | 4.19 |
F-Score4
WACC10.21%
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)-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 Year5.2%
Revenue Next 2Y4.9%
Revenue Next 3Y4.76%
Revenue Next 5Y3.87%
EBIT growth 1Y-6.86%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.86%
EBIT Next 3Y12.85%
EBIT Next 5Y7.92%
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%