JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
Taking everything into account, JNJ scores 5 out of 10 in our fundamental rating. JNJ was compared to 51 industry peers in the Pharmaceuticals industry. JNJ has only an average score on both its financial health and profitability. JNJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JNJ had positive earnings in the past year.
In the past year JNJ had a positive cash flow from operations.
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 11.26%, JNJ is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
With a decent Return On Equity value of 27.92%, JNJ is doing good in the industry, outperforming 73.58% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.67%, JNJ is doing good in the industry, outperforming 73.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 14.80%.
| 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
JNJ has a Profit Margin of 24.41%. This is amongst the best in the industry. JNJ outperforms 86.79% of its industry peers.
JNJ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.16%, JNJ is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
JNJ's Operating Margin has improved in the last couple of years.
The Gross Margin of JNJ (68.34%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of JNJ has remained more or less at the same level.
| 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
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.
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 4.08. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
JNJ has a better Altman-Z score (4.08) than 67.92% of its industry peers.
JNJ has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as JNJ would need 2.57 years to pay back of all of its debts.
JNJ 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 JNJ is somewhat dependend on debt financing.
JNJ has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.3
WACC10.51%
2.3 Liquidity
JNJ has a Current Ratio of 1.26. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of JNJ (1.26) is worse than 67.92% of its industry peers.
A Quick Ratio of 1.03 indicates that JNJ should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, JNJ perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for JNJ have decreased by -3.92% in the last year.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 4.30% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.89% yearly.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y7.29%
EPS Next 2Y6.02%
EPS Next 3Y6.39%
EPS Next 5Y5.89%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
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
With a Price/Earnings ratio of 15.58, JNJ is valued correctly.
JNJ's Price/Earnings ratio is a bit cheaper when compared to the industry. JNJ is cheaper than 60.38% of the companies in the same industry.
JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.94, the valuation of JNJ can be described as correct.
Based on the Price/Forward Earnings ratio, JNJ is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JNJ is on the same level as its industry peers.
60.38% 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 | 18.49 | ||
| EV/EBITDA | 11.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JNJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)5.46
EPS Next 2Y6.02%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.32%.
Compared to an average industry Dividend Yield of 2.92, JNJ pays a bit more dividend than its industry peers.
JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
On average, the dividend of JNJ grows each year by 9.24%, which is quite nice.
Dividend Growth(5Y)9.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
JNJ pays out 54.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
JNJ'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%
FRA:JNJ (6/13/2025, 7:00:00 PM)
136.02
+1.3 (+0.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.05%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap327.27B
Analysts72.41
Price Target152.06 (11.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend4.27
Dividend Growth(5Y)9.24%
DP54.76%
Div Incr Years6
Div Non Decr Years6
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)-1.15%
PT rev (3m)-7.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 13.94 | ||
| P/S | 4.22 | ||
| P/FCF | 18.49 | ||
| P/OCF | 15.2 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)8.73
EY6.42%
EPS(NY)9.75
Fwd EY7.17%
FCF(TTM)7.35
FCFY5.41%
OCF(TTM)8.95
OCFY6.58%
SpS32.25
BVpS28.2
TBVpS-1.12
PEG (NY)2.14
PEG (5Y)5.46
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 | 4.08 |
F-Score5
WACC10.51%
ROIC/WACC1.3
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 5Y5.89%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%2.39%
Revenue Next Year2.9%
Revenue Next 2Y3.52%
Revenue Next 3Y3.79%
Revenue Next 5Y3.87%
EBIT growth 1Y-3.64%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
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%