Johnson and Johnson (JNJ.CA) Stock Fundamental Analysis
TSX:JNJ
31.45 CAD
-0.28 (-0.88%)
Last: Feb 25, 2026, 07:00 PM
Taking everything into account, JNJ scores 7 out of 10 in our fundamental rating. JNJ was compared to 33 industry peers in the Pharmaceuticals industry. While JNJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on JNJ. This makes JNJ very considerable for value investing!
1. Profitability
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.
- JNJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 13.03%, JNJ belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- With an excellent Return On Equity value of 31.69%, JNJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- JNJ's Return On Invested Capital of 14.16% is amongst the best of the industry. JNJ outperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 27.26%, JNJ belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- JNJ's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 27.00%, JNJ belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- JNJ has a better Gross Margin (68.14%) than 87.88% of its industry peers.
- JNJ'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 3Y6.15%
OM growth 5Y6.99%
PM growth 3Y8.26%
PM growth 5Y9.82%
GM growth 3Y-0.67%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- JNJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- JNJ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.44 indicates that JNJ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of JNJ (2.44) is better than 90.91% of its industry peers.
- The Debt to FCF ratio of JNJ is 2.34, which is a good value as it means it would take JNJ, 2.34 years of fcf income to pay off all of its debts.
- JNJ has a better Debt to FCF ratio (2.34) than 87.88% of its industry peers.
- JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.55, JNJ is doing worse than 63.64% of the companies in the same industry.
- Although JNJ 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 | 2.44 |
ROIC/WACC1.3
WACC10.88%
2.3 Liquidity
- JNJ has a Current Ratio of 1.07. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
- JNJ has a worse Current ratio (1.07) than 81.82% of its industry peers.
- JNJ has a Quick Ratio of 1.07. 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. JNJ is outperformed by 66.67% of its industry peers.
- JNJ does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- JNJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
- The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
- 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
- JNJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
- JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.75%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
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.
- 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
- The Price/Earnings ratio is 2.13, which indicates a rather cheap valuation of JNJ.
- Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 96.97% of the companies listed in the same industry.
- JNJ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 1.97, the valuation of JNJ can be described as very cheap.
- 96.97% of the companies in the same industry are more expensive than JNJ, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (28.13), we can say JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.13 | ||
| Fwd PE | 1.97 |
4.2 Price Multiples
- JNJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JNJ is cheaper than 93.94% of the companies in the same industry.
- 96.97% of the companies in the same industry are more expensive than JNJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.82 | ||
| EV/EBITDA | 2.12 |
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.
- JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)0.35
EPS Next 2Y8.2%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.13%, JNJ has a reasonable but not impressive dividend return.
- JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.25. JNJ pays more dividend than 96.97% of the companies in the same industry.
- JNJ's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
- The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
- JNJ does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)9.24%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- JNJ pays out 48.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of JNJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.7%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
TSX:JNJ (2/25/2026, 7:00:00 PM)
31.45
-0.28 (-0.88%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21 2026-01-21/bmo
Earnings (Next)04-14 2026-04-14
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap75.77B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75.63
Price Target30.35 (-3.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend6.69
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)6
Avg Revenue beat(12)-3.35%
Revenue beat(16)6
Avg Revenue beat(16)-9.35%
PT rev (1m)8.86%
PT rev (3m)N/A
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.79%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.13 | ||
| Fwd PE | 1.97 | ||
| P/S | 0.6 | ||
| P/FCF | 2.82 | ||
| P/OCF | 2.29 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.12 |
EPS(TTM)14.79
EY47.03%
EPS(NY)15.95
Fwd EY50.72%
FCF(TTM)11.14
FCFY35.41%
OCF(TTM)13.75
OCFY43.73%
SpS52.36
BVpS45.05
TBVpS-9.95
PEG (NY)0.27
PEG (5Y)0.35
Graham Number122.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.16% | ||
| ROICexc | 16.21% | ||
| ROICexgc | 66.83% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.48
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 | 2.44 |
F-Score4
WACC10.88%
ROIC/WACC1.3
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y2.06%
EPS 5Y6.11%
EPS Q2Q%20.59%
EPS Next Y7.88%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
EPS Next 5Y8.75%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year7.21%
Revenue Next 2Y6.4%
Revenue Next 3Y6.15%
Revenue Next 5Y6.02%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y8.55%
FCF growth 1Y-5.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.75%
OCF growth 3YN/A
OCF growth 5YN/A
Johnson and Johnson / JNJ.CA 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.
What is the profitability of JNJ stock?
Johnson and Johnson (JNJ.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for JNJ stock?
The financial health rating of Johnson and Johnson (JNJ.CA) is 6 / 10.
Is the dividend of Johnson and Johnson sustainable?
The dividend rating of Johnson and Johnson (JNJ.CA) is 4 / 10 and the dividend payout ratio is 48.7%.