JOHNSON & JOHNSON (1JNJ.MI) Stock Fundamental Analysis
BIT:1JNJ - Euronext Milan - US4781601046 - Common Stock - Currency: EUR
1JNJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 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 not valued too expensively and it also shows 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.
In the past 5 years 1JNJ has always been profitable.
Each year in the past 5 years 1JNJ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 11.26%, 1JNJ is doing good in the industry, outperforming 75.47% of the companies in the same industry.
1JNJ has a better Return On Equity (27.92%) than 73.58% of its industry peers.
1JNJ has a better Return On Invested Capital (13.67%) than 69.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1JNJ is in line with the industry average of 15.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROIC | 13.67% |
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 24.41%, 1JNJ belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
1JNJ's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 26.16%, 1JNJ is doing good in the industry, outperforming 69.81% of the companies in the same industry.
1JNJ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 68.34%, 1JNJ perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
1JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% |
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
1JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.04 indicates that 1JNJ is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1JNJ (4.04) is better than 69.81% of its industry peers.
1JNJ has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as 1JNJ would need 2.57 years to pay back of all of its debts.
1JNJ has a better Debt to FCF ratio (2.57) than 77.36% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that 1JNJ is somewhat dependend on debt financing.
1JNJ's Debt to Equity ratio of 0.63 is fine compared to the rest of the industry. 1JNJ outperforms 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.31
WACC10.42%
2.3 Liquidity
1JNJ has a Current Ratio of 1.26. This is a normal value and indicates that 1JNJ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, 1JNJ is doing worse than 67.92% of the companies in the same industry.
1JNJ has a Quick Ratio of 1.03. 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 Quick ratio of 1.03. This is comparable to the rest of the industry: 1JNJ outperforms 54.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
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%.
1JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.85% yearly.
The Revenue has been growing slightly by 4.30% in the past year.
Measured over the past years, 1JNJ shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
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
1JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
Based on estimates for the next years, 1JNJ will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.39%
Revenue Next Year2.89%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
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.
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
With a Price/Earnings ratio of 15.27, 1JNJ is valued correctly.
Based on the Price/Earnings ratio, 1JNJ is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1JNJ to the average of the S&P500 Index (26.43), we can say 1JNJ is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.67, 1JNJ is valued correctly.
Based on the Price/Forward Earnings ratio, 1JNJ is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1JNJ to the average of the S&P500 Index (22.17), we can say 1JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1JNJ.
Based on the Price/Free Cash Flow ratio, 1JNJ is valued a bit cheaper than 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.13 | ||
| EV/EBITDA | 11.6 |
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)2.09
PEG (5Y)5.35
EPS Next 2Y6.02%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, 1JNJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, 1JNJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 1JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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 54.76% 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.
DP54.76%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
BIT:1JNJ (6/2/2025, 7:00:00 PM)
134.8
-1.4 (-1.03%)
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 Cap324.34B
Analysts74
Price Target153.94 (14.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend4.33
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.68%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.57%
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)3.64%
EPS beat(16)14
Avg EPS beat(16)4.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)0.53%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-6.08%
Revenue beat(16)6
Avg Revenue beat(16)-8.44%
PT rev (1m)-3.81%
PT rev (3m)-5.68%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.67 | ||
| P/S | 4.13 | ||
| P/FCF | 18.13 | ||
| P/OCF | 14.9 | ||
| P/B | 4.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)8.83
EY6.55%
EPS(NY)9.86
Fwd EY7.32%
FCF(TTM)7.44
FCFY5.52%
OCF(TTM)9.05
OCFY6.71%
SpS32.61
BVpS28.51
TBVpS-1.14
PEG (NY)2.09
PEG (5Y)5.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 27.92% | ||
| ROCE | 17.09% | ||
| ROIC | 13.67% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 72.98% | ||
| OM | 26.16% | ||
| PM (TTM) | 24.41% | ||
| GM | 68.34% | ||
| FCFM | 22.8% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 93.4% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.04 |
F-Score5
WACC10.42%
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)-3.92%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%2.21%
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.39%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.89%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.54%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.4%
FCF growth 1Y25.69%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y21.06%
OCF growth 3Y1.2%
OCF growth 5Y0.72%