Johnson and Johnson (JNJ.CA) Fundamental Analysis & Valuation
TSX:JNJ
31.88 CAD
-0.26 (-0.81%)
Last: Mar 3, 2026, 07:00 PM
This JNJ.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to JNJ. JNJ was compared to 34 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but 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. These ratings would make JNJ suitable for value investing!
1. JNJ.CA Profitability Analysis
1.1 Basic Checks
- In the past year JNJ was profitable.
- JNJ had a positive operating cash flow in the past year.
- In the past 5 years JNJ has always been profitable.
- Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.46%, JNJ belongs to the top of the industry, outperforming 94.12% 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 94.12% 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 8.25%.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of JNJ (28.46%) is better than 94.12% of its industry peers.
- In the last couple of years the Profit Margin of JNJ has grown nicely.
- JNJ has a Operating Margin of 27.78%. This is amongst the best in the industry. JNJ outperforms 97.06% of its industry peers.
- JNJ's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 67.92%, JNJ belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. JNJ.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ is creating some value.
- Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
- JNJ has less shares outstanding than it did 5 years ago.
- JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
- JNJ has an Altman-Z score of 2.39. This is not the best score and indicates that JNJ is in the grey zone with still only limited risk for bankruptcy at the moment.
- JNJ has a better Altman-Z score (2.39) than 91.18% 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.
- With an excellent Debt to FCF ratio value of 2.43, JNJ belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- JNJ has a Debt/Equity ratio of 0.56. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
- JNJ's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. JNJ is outperformed by 61.76% of its industry peers.
- Even though the debt/equity ratio score it not favorable for JNJ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.42
WACC10.12%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
- JNJ's Current ratio of 1.03 is on the low side compared to the rest of the industry. JNJ is outperformed by 82.35% of its industry peers.
- A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.77, JNJ is doing worse than 70.59% of the companies in the same industry.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.77 |
3. JNJ.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 8.11% over the past year.
- The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
- Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- Measured over the past years, JNJ shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
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
- The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.02% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. JNJ.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 2.16 indicates a rather cheap valuation of JNJ.
- 94.12% of the companies in the same industry are more expensive than JNJ, based on the Price/Earnings ratio.
- JNJ is valuated cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 2.00 indicates a rather cheap valuation of JNJ.
- JNJ's Price/Forward Earnings ratio is rather cheap when compared to the industry. JNJ is cheaper than 97.06% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (24.95), we can say JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.16 | ||
| Fwd PE | 2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 94.12% of the companies in the same industry.
- 97.06% 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 | 2.85 | ||
| EV/EBITDA | 1.98 |
4.3 Compensation for Growth
- The 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. JNJ.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.14%, JNJ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.37, JNJ pays a better dividend. On top of this JNJ pays more dividend than 94.12% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
- JNJ pays out 46.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of JNJ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
JNJ.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:JNJ (3/3/2026, 7:00:00 PM)
31.88
-0.26 (-0.81%)
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 Cap76.81B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target30.48 (-4.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend7.03
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)9.33%
PT rev (3m)N/A
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.79%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.16 | ||
| Fwd PE | 2 | ||
| P/S | 0.6 | ||
| P/FCF | 2.85 | ||
| P/OCF | 2.29 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.98 |
EPS(TTM)14.78
EY46.36%
EPS(NY)15.94
Fwd EY50.01%
FCF(TTM)11.19
FCFY35.1%
OCF(TTM)13.93
OCFY43.71%
SpS53.5
BVpS46.32
TBVpS-10.01
PEG (NY)0.27
PEG (5Y)0.35
Graham Number124.11
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.39 |
F-Score4
WACC10.12%
ROIC/WACC1.42
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 Y7.88%
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 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 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 9 / 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 46.19%.