JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1JNJ - US4781601046 - Common Stock
178.78 EUR
-0.06 (-0.03%)
Taking everything into account, 1JNJ scores 5 out of 10 in our fundamental rating. 1JNJ was compared to 55 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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's Return On Assets of 13.03% is fine compared to the rest of the industry. 1JNJ outperforms 80.00% of its industry peers.
1JNJ's Return On Equity of 31.69% is fine compared to the rest of the industry. 1JNJ outperforms 72.73% of its industry peers.
With a decent Return On Invested Capital value of 14.68%, 1JNJ is doing good in the industry, outperforming 72.73% 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 13.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.68% |
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 an excellent Profit Margin value of 27.26%, 1JNJ belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ has a Operating Margin of 27.00%. This is in the better half of the industry: 1JNJ outperforms 70.91% of its industry peers.
In the last couple of years the Operating Margin of 1JNJ has grown nicely.
1JNJ has a Gross Margin (68.14%) which is comparable to the rest of the industry.
1JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
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.
Compared to 5 years ago, 1JNJ has less shares outstanding
The debt/assets ratio for 1JNJ is higher compared to a year ago.
2.2 Solvency
1JNJ has an Altman-Z score of 4.77. This indicates that 1JNJ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1JNJ (4.77) is better than 72.73% of its industry peers.
1JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as 1JNJ would need 2.34 years to pay back of all of its debts.
The Debt to FCF ratio of 1JNJ (2.34) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that 1JNJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, 1JNJ is in line with its industry, outperforming 56.36% of the companies in the same industry.
Although 1JNJ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.58
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.07 indicates that 1JNJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, 1JNJ is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
1JNJ has a Quick Ratio of 1.07. 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 0.80, 1JNJ is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% over the past year.
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 5.08% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
3.2 Future
The Earnings Per Share is expected to grow by 7.68% 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 5.29% on average per year.
EPS Next Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.68%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.93, the valuation of 1JNJ can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1JNJ is on the same level as its industry peers.
1JNJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 17.75 indicates a rather expensive valuation of 1JNJ.
1JNJ's Price/Forward Earnings is on the same level as the industry average.
1JNJ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than 1JNJ, based on the Enterprise Value to EBITDA ratio.
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 | 25.42 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)6.99
EPS Next 2Y8%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.51%.
Compared to an average industry Dividend Yield of 2.86, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 1JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
48.70% 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.
DP48.7%
EPS Next 2Y8%
EPS Next 3Y7.66%
BIT:1JNJ (11/26/2025, 7:00:00 PM)
178.78
-0.06 (-0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap430.73B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.48
Price Target175.64 (-1.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend4.25
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.55%
Max EPS beat(2)2.3%
EPS beat(4)4
Avg EPS beat(4)2.37%
Min EPS beat(4)0.55%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.79%
EPS beat(12)11
Avg EPS beat(12)3.6%
EPS beat(16)14
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)1.48%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)-2.01%
Revenue beat(16)7
Avg Revenue beat(16)-8.34%
PT rev (1m)11.89%
PT rev (3m)13.2%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 17.75 | ||
| P/S | 5.41 | ||
| P/FCF | 25.42 | ||
| P/OCF | 20.58 | ||
| P/B | 6.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)8.97
EY5.02%
EPS(NY)10.07
Fwd EY5.63%
FCF(TTM)7.03
FCFY3.93%
OCF(TTM)8.69
OCFY4.86%
SpS33.07
BVpS28.45
TBVpS-6.28
PEG (NY)2.02
PEG (5Y)6.99
Graham Number75.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.68% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 69.32% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
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%
ROICexgc growth 3Y1.2%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 62.36% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 4.77 |
F-Score5
WACC9.28%
ROIC/WACC1.58
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)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
EPS Next Y9.86%
EPS Next 2Y8%
EPS Next 3Y7.66%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.62%
Revenue Next 2Y5.45%
Revenue Next 3Y5.26%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
EBIT Next 5Y8.85%
FCF growth 1Y24.53%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y19.36%
OCF growth 3Y1.2%
OCF growth 5Y0.72%
JOHNSON & JOHNSON / 1JNJ.MI FAQ
What is the fundamental rating for 1JNJ stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1JNJ.MI.
Can you provide the valuation status for JOHNSON & JOHNSON?
ChartMill assigns a valuation rating of 3 / 10 to JOHNSON & JOHNSON (1JNJ.MI). This can be considered as Overvalued.
What is the profitability of 1JNJ stock?
JOHNSON & JOHNSON (1JNJ.MI) has a profitability rating of 6 / 10.
What is the earnings growth outlook for JOHNSON & JOHNSON?
The Earnings per Share (EPS) of JOHNSON & JOHNSON (1JNJ.MI) is expected to grow by 9.86% in the next year.
Can you provide the dividend sustainability for 1JNJ stock?
The dividend rating of JOHNSON & JOHNSON (1JNJ.MI) is 4 / 10 and the dividend payout ratio is 48.7%.