JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
Europe - BIT:1JNJ - US4781601046 - Common Stock
165.22 EUR
+0.42 (+0.25%)
1JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. 1JNJ has only an average score on both its financial health and profitability. 1JNJ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1JNJ was profitable.
In the past year 1JNJ had a positive cash flow from operations.
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
1JNJ has a better Return On Assets (11.72%) than 79.25% of its industry peers.
1JNJ has a better Return On Equity (28.88%) than 75.47% of its industry peers.
1JNJ's Return On Invested Capital of 13.62% is fine compared to the rest of the industry. 1JNJ outperforms 62.26% 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 15.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.62% |
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 25.00%, 1JNJ belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
In the last couple of years the Profit Margin of 1JNJ has declined.
1JNJ's Operating Margin of 25.69% is fine compared to the rest of the industry. 1JNJ outperforms 66.04% of its industry peers.
1JNJ's Operating Margin has improved in the last couple of years.
1JNJ's Gross Margin of 67.97% is in line compared to the rest of the industry. 1JNJ outperforms 47.17% of 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 | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% |
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.
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 4.48. 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 4.48, 1JNJ is in the better half of the industry, outperforming 64.15% 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 67.92% of its industry peers.
1JNJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating 1JNJ is somewhat dependend on debt financing.
1JNJ has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.49
WACC9.14%
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 69.81% of its industry peers.
A Quick Ratio of 0.76 indicates that 1JNJ may have some problems paying its short term obligations.
The Quick ratio of 1JNJ (0.76) is worse than 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
1JNJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
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
Based on estimates for the next years, 1JNJ will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 4.82% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.17%
EPS Next 3Y6.91%
EPS Next 5Y6.91%
Revenue Next Year5.23%
Revenue Next 2Y4.92%
Revenue Next 3Y4.88%
Revenue Next 5Y4.82%
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 18.48, the valuation of 1JNJ can be described as rather expensive.
1JNJ's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1JNJ to the average of the S&P500 Index (27.57), we can say 1JNJ is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.72 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 23.09, 1JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.72 |
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 | 24.9 | ||
| EV/EBITDA | 15.43 |
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.
1JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)6.48
EPS Next 2Y7.17%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
1JNJ has a Yearly Dividend Yield of 2.71%.
1JNJ's Dividend Yield is a higher than the industry average which is at 3.00.
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 | 2.71% |
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 2Y7.17%
EPS Next 3Y6.91%
BIT:1JNJ (10/20/2025, 7:00:00 PM)
165.22
+0.42 (+0.25%)
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 Cap397.91B
Revenue(TTM)92.15B
Net Income(TTM)22.66B
Analysts74.84
Price Target156.97 (-4.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend4.21
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)1.47%
PT rev (3m)3.8%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.72 | ||
| P/S | 5.1 | ||
| P/FCF | 24.9 | ||
| P/OCF | 20.06 | ||
| P/B | 5.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.43 |
EPS(TTM)8.94
EY5.41%
EPS(NY)9.88
Fwd EY5.98%
FCF(TTM)6.64
FCFY4.02%
OCF(TTM)8.24
OCFY4.99%
SpS32.42
BVpS28.07
TBVpS-6.97
PEG (NY)1.89
PEG (5Y)6.48
Graham Number75.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.73% | ||
| ROIC | 13.62% | ||
| ROICexc | 15.61% | ||
| ROICexgc | 65.14% | ||
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% | ||
| 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%
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.91% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.48 |
F-Score4
WACC9.14%
ROIC/WACC1.49
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 Y9.8%
EPS Next 2Y7.17%
EPS Next 3Y6.91%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.23%
Revenue Next 2Y4.92%
Revenue Next 3Y4.88%
Revenue Next 5Y4.82%
EBIT growth 1Y-6.56%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
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%