Johnson and Johnson (JNJ.CA) Fundamental Analysis & Valuation

TSX:JNJ

Current stock price

31.49 CAD
-0.01 (-0.03%)
Last:

This JNJ.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. JNJ.CA Profitability Analysis

1.1 Basic Checks

  • In the past year JNJ was profitable.
  • In the past year JNJ had a positive cash flow from operations.
  • In the past 5 years JNJ has always been profitable.
  • In the past 5 years JNJ always reported a positive cash flow from operatings.
JNJ.CA Yearly Net Income VS EBIT VS OCF VS FCFJNJ.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.46%, JNJ belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 32.87%, JNJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • JNJ's Return On Invested Capital of 14.37% is amongst the best of the industry. JNJ outperforms 93.94% of its industry peers.
  • JNJ had an Average Return On Invested Capital over the past 3 years of 16.34%. This is significantly above the industry average of 8.22%.
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROIC 14.37%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
JNJ.CA Yearly ROA, ROE, ROICJNJ.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • JNJ has a Profit Margin of 28.46%. This is amongst the best in the industry. JNJ outperforms 93.94% of its industry peers.
  • JNJ's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 27.78%, JNJ belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
  • In the last couple of years the Operating Margin of JNJ has grown nicely.
  • JNJ's Gross Margin of 67.92% is amongst the best of the industry. JNJ outperforms 87.88% of its industry peers.
  • In the last couple of years the Gross Margin of JNJ has remained more or less at the same level.
Industry RankSector Rank
OM 27.78%
PM (TTM) 28.46%
GM 67.92%
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
JNJ.CA Yearly Profit, Operating, Gross MarginsJNJ.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. JNJ.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still creating some value.
  • JNJ has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
  • Compared to 1 year ago, JNJ has a worse debt to assets ratio.
JNJ.CA Yearly Shares OutstandingJNJ.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
JNJ.CA Yearly Total Debt VS Total AssetsJNJ.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • An Altman-Z score of 2.38 indicates that JNJ is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of JNJ (2.38) is better than 84.85% of its industry peers.
  • JNJ has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as JNJ would need 2.43 years to pay back of all of its debts.
  • JNJ's Debt to FCF ratio of 2.43 is amongst the best of the industry. JNJ outperforms 84.85% of its industry peers.
  • JNJ has a Debt/Equity ratio of 0.56. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
  • JNJ has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: JNJ underperforms 63.64% of its industry peers.
  • Although JNJ's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Altman-Z 2.38
ROIC/WACC1.41
WACC10.23%
JNJ.CA Yearly LT Debt VS Equity VS FCFJNJ.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.3 Liquidity

  • A Current Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
  • JNJ has a worse Current ratio (1.03) than 84.85% of its industry peers.
  • JNJ has a Quick Ratio of 1.03. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • JNJ has a Quick ratio of 0.77. This is in the lower half of the industry: JNJ underperforms 69.70% of its industry peers.
  • The current and quick ratio evaluation for JNJ is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.77
JNJ.CA Yearly Current Assets VS Current LiabilitesJNJ.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. JNJ.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.11% over the past year.
  • JNJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.11% yearly.
  • The Revenue has been growing slightly by 6.05% in the past year.
  • JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%

3.2 Future

  • Based on estimates for the next years, JNJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.75% on average per year.
  • JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y7.85%
EPS Next 2Y8.27%
EPS Next 3Y8.5%
EPS Next 5Y8.75%
Revenue Next Year7.19%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
Revenue Next 5Y6.02%

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.
  • 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.
JNJ.CA Yearly Revenue VS EstimatesJNJ.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
JNJ.CA Yearly EPS VS EstimatesJNJ.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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9

4. JNJ.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 2.10 indicates a rather cheap valuation of JNJ.
  • Based on the Price/Earnings ratio, JNJ is valued cheaper than 96.97% of the companies in the same industry.
  • JNJ is valuated cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 1.95, the valuation of JNJ can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, JNJ is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (22.84), we can say JNJ is valued rather cheaply.
Industry RankSector Rank
PE 2.1
Fwd PE 1.95
JNJ.CA Price Earnings VS Forward Price EarningsJNJ.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
  • JNJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JNJ is cheaper than 93.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.77
EV/EBITDA 1.93
JNJ.CA Per share dataJNJ.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • JNJ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)0.34
EPS Next 2Y8.27%
EPS Next 3Y8.5%

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4

5. JNJ.CA Dividend Analysis

5.1 Amount

  • JNJ has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.38, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.94% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, JNJ has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.17%

5.2 History

  • On average, the dividend of JNJ grows each year by 7.68%, which is quite nice.
  • JNJ does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)7.68%
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

  • 46.19% of the earnings are spent on dividend by JNJ. This is a bit on the high side, but may be sustainable.
  • JNJ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.27%
EPS Next 3Y8.5%
JNJ.CA Yearly Income VS Free CF VS DividendJNJ.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B
JNJ.CA Dividend Payout.JNJ.CA Dividend Payout, showing the Payout Ratio.JNJ.CA Dividend Payout.PayoutRetained Earnings

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JNJ.CA Fundamentals: All Metrics, Ratios and Statistics

Johnson and Johnson

TSX:JNJ (4/1/2026, 7:00:00 PM)

31.49

-0.01 (-0.03%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.62%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap75.85B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target30.48 (-3.21%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
Yearly Dividend7.13
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-0.13%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.13%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)2.84%
EPS beat(12)10
Avg EPS beat(12)3.23%
EPS beat(16)14
Avg EPS beat(16)3.09%
Revenue beat(2)2
Avg Revenue beat(2)0.35%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.67%
Revenue beat(4)4
Avg Revenue beat(4)1.04%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)7
Avg Revenue beat(12)-1.85%
Revenue beat(16)7
Avg Revenue beat(16)-5.45%
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.02%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 2.1
Fwd PE 1.95
P/S 0.58
P/FCF 2.77
P/OCF 2.23
P/B 0.67
P/tB N/A
EV/EBITDA 1.93
EPS(TTM)15.01
EY47.67%
EPS(NY)16.18
Fwd EY51.39%
FCF(TTM)11.36
FCFY36.08%
OCF(TTM)14.15
OCFY44.94%
SpS54.34
BVpS47.04
TBVpS-10.17
PEG (NY)0.27
PEG (5Y)0.34
Graham Number126.04
Profitability
Industry RankSector Rank
ROA 13.46%
ROE 32.87%
ROCE 18.03%
ROIC 14.37%
ROICexc 16.57%
ROICexgc 67.45%
OM 27.78%
PM (TTM) 28.46%
GM 67.92%
FCFM 20.91%
ROA(3y)14.08%
ROA(5y)12.66%
ROE(3y)34.55%
ROE(5y)31.04%
ROIC(3y)16.34%
ROIC(5y)15%
ROICexc(3y)19.6%
ROICexc(5y)18.23%
ROICexgc(3y)74.51%
ROICexgc(5y)73.44%
ROCE(3y)20.24%
ROCE(5y)18.7%
ROICexgc growth 3Y3.9%
ROICexgc growth 5Y-2.01%
ROICexc growth 3Y8.52%
ROICexc growth 5Y5.62%
OM growth 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
F-Score4
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Debt/EBITDA 1.36
Cap/Depr 64.4%
Cap/Sales 5.13%
Interest Coverage 6.81
Cash Conversion 72.86%
Profit Quality 73.49%
Current Ratio 1.03
Quick Ratio 0.77
Altman-Z 2.38
F-Score4
WACC10.23%
ROIC/WACC1.41
Cap/Depr(3y)61.79%
Cap/Depr(5y)58.46%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.02%
Profit Quality(3y)88.82%
Profit Quality(5y)91.38%
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.85%
EPS Next 2Y8.27%
EPS Next 3Y8.5%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.19%
Revenue Next 2Y6.53%
Revenue Next 3Y6.26%
Revenue Next 5Y6.02%
EBIT growth 1Y12.82%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.18%
EBIT Next 3Y11.51%
EBIT Next 5Y8.55%
FCF growth 1Y-0.73%
FCF growth 3Y4.65%
FCF growth 5Y-0.49%
OCF growth 1Y1.09%
OCF growth 3Y4.99%
OCF growth 5Y0.83%

Johnson and Johnson / JNJ.CA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for Johnson and Johnson?

ChartMill assigns a fundamental rating of 7 / 10 to JNJ.CA.


What is the valuation status of Johnson and Johnson (JNJ.CA) stock?

ChartMill assigns a valuation rating of 9 / 10 to Johnson and Johnson (JNJ.CA). This can be considered as Undervalued.


How profitable is Johnson and Johnson (JNJ.CA) stock?

Johnson and Johnson (JNJ.CA) has a profitability rating of 9 / 10.


What is the financial health of Johnson and Johnson (JNJ.CA) stock?

The financial health rating of Johnson and Johnson (JNJ.CA) is 6 / 10.


Can you provide the expected EPS growth for JNJ stock?

The Earnings per Share (EPS) of Johnson and Johnson (JNJ.CA) is expected to grow by 7.85% in the next year.