JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - BIT:1JNJ - US4781601046 - Common Stock
149.62 EUR
-2.34 (-1.54%)
Overall 1JNJ gets a fundamental rating of 5 out of 10. We evaluated 1JNJ against 51 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
In the past year 1JNJ was profitable.
1JNJ had a positive operating cash flow in the past year.
Each year in the past 5 years 1JNJ has been profitable.
1JNJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.72%, 1JNJ belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
1JNJ's Return On Equity of 28.88% is amongst the best of the industry. 1JNJ outperforms 82.35% 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.
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 15.11%.
| 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 86.27% 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 70.59% of the companies in the same industry.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
The Gross Margin of 1JNJ (67.98%) 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1JNJ is creating some value.
Compared to 1 year ago, 1JNJ has about the same amount of shares outstanding.
The number of shares outstanding for 1JNJ has been reduced compared to 5 years ago.
The debt/assets ratio for 1JNJ is higher compared to a year ago.
2.2 Solvency
1JNJ has an Altman-Z score of 4.26. 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 4.26, 1JNJ is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
The Debt to FCF ratio of 1JNJ is 2.74, which is a good value as it means it would take 1JNJ, 2.74 years of fcf income to pay off all of its debts.
1JNJ has a better Debt to FCF ratio (2.74) than 74.51% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 1JNJ is somewhat dependend on debt financing.
1JNJ's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. 1JNJ outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.31
WACC10.33%
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.
With a Current ratio value of 1.01, 1JNJ is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that 1JNJ may have some problems paying its short term obligations.
1JNJ has a worse Quick ratio (0.76) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
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.
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.
1JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y9.8%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
EPS Next 5Y6.46%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
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
Based on the Price/Earnings ratio of 17.46, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, 1JNJ is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.22 indicates a correct valuation of 1JNJ.
1JNJ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, 1JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
1JNJ's Enterprise Value to EBITDA ratio is in line with the industry average.
60.78% 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 | 22.67 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1JNJ may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)6.12
EPS Next 2Y7.16%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.91%.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.03.
1JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 53.34% of its income as dividend. 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.
DP53.34%
EPS Next 2Y7.16%
EPS Next 3Y6.88%
BIT:1JNJ (9/22/2025, 7:00:00 PM)
149.62
-2.34 (-1.54%)
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 Cap360.34B
Analysts73.55
Price Target154.7 (3.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend4.19
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)1.14%
PT rev (3m)2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.49%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 15.22 | ||
| P/S | 4.64 | ||
| P/FCF | 22.67 | ||
| P/OCF | 18.26 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)8.57
EY5.73%
EPS(NY)9.83
Fwd EY6.57%
FCF(TTM)6.6
FCFY4.41%
OCF(TTM)8.19
OCFY5.48%
SpS32.24
BVpS27.92
TBVpS-6.93
PEG (NY)1.78
PEG (5Y)6.12
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 | 4.26 |
F-Score4
WACC10.33%
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 Year5.2%
Revenue Next 2Y4.89%
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%