JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:JNJ • US4781601046
198.94 EUR
+0.78 (+0.39%)
Last: Feb 4, 2026, 05:20 PM
Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 55 industry peers in the Pharmaceuticals industry. JNJ has only an average score on both its financial health and profitability. JNJ is quite expensive at the moment. It does show 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.
- JNJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- JNJ's Return On Assets of 13.03% is fine compared to the rest of the industry. JNJ outperforms 78.18% of its industry peers.
- JNJ has a Return On Equity of 31.69%. This is in the better half of the industry: JNJ outperforms 70.91% of its industry peers.
- JNJ has a Return On Invested Capital of 14.16%. This is in the better half of the industry: JNJ outperforms 69.09% 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
- The Profit Margin of JNJ (27.26%) is better than 83.64% of its industry peers.
- JNJ's Profit Margin has improved in the last couple of years.
- The Operating Margin of JNJ (27.00%) is better than 69.09% of its industry peers.
- In the last couple of years the Operating Margin of JNJ has grown nicely.
- The Gross Margin of JNJ (68.14%) is worse than 60.00% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JNJ 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 5.12 indicates that JNJ is not in any danger for bankruptcy at the moment.
- JNJ has a better Altman-Z score (5.12) than 70.91% of its industry peers.
- JNJ has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as JNJ would need 2.34 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.34, JNJ belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
- JNJ has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: JNJ outperforms 56.36% 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 | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.43
WACC9.88%
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.
- With a Current ratio value of 1.07, JNJ is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
- A Quick Ratio of 0.80 indicates that JNJ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, JNJ is doing worse than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.11% over the past year.
- Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 6.11% on average per year.
- JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
- The Revenue has been growing slightly by 2.67% on average over the past years.
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 8.17% yearly.
- JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
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. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.74, JNJ is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as JNJ.
- The average S&P500 Price/Earnings ratio is at 28.18. JNJ is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 20.31, the valuation of JNJ can be described as rather expensive.
- JNJ's Price/Forward Earnings is on the same level as the industry average.
- JNJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
- JNJ's Enterprise Value to EBITDA is on the same level as the industry average.
- JNJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.86 | ||
| EV/EBITDA | 17.85 |
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)3.09
PEG (5Y)3.56
EPS Next 2Y7.63%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- JNJ has a Yearly Dividend Yield of 2.29%.
- Compared to an average industry Dividend Yield of 1.95, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 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 2Y7.63%
EPS Next 3Y7.31%
FRA:JNJ (2/4/2026, 5:20:04 PM)
198.94
+0.78 (+0.39%)
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 Cap479.31B
Revenue(TTM)94.19B
Net Income(TTM)25.12B
Analysts75
Price Target182.77 (-8.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend4.12
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years6
Div Non Decr Years6
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)7
Avg Revenue beat(12)-2.01%
Revenue beat(16)7
Avg Revenue beat(16)-8.34%
PT rev (1m)-0.6%
PT rev (3m)4.2%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 20.31 | ||
| P/S | 6.14 | ||
| P/FCF | 28.86 | ||
| P/OCF | 23.37 | ||
| P/B | 7.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)9.15
EY4.6%
EPS(NY)9.8
Fwd EY4.92%
FCF(TTM)6.89
FCFY3.46%
OCF(TTM)8.51
OCFY4.28%
SpS32.41
BVpS27.88
TBVpS-6.16
PEG (NY)3.09
PEG (5Y)3.56
Graham Number75.77
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 | 5.12 |
F-Score4
WACC9.88%
ROIC/WACC1.43
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 Y7.03%
EPS Next 2Y7.63%
EPS Next 3Y7.31%
EPS Next 5Y8.17%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y5.6%
Revenue growth 5Y2.67%
Sales Q2Q%9.08%
Revenue Next Year6.76%
Revenue Next 2Y6.06%
Revenue Next 3Y6.02%
Revenue Next 5Y5.37%
EBIT growth 1Y2.89%
EBIT growth 3Y12.1%
EBIT growth 5Y9.84%
EBIT Next Year23.35%
EBIT Next 3Y11.24%
EBIT Next 5Y7.6%
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 & JOHNSON / JNJ.DE FAQ
Can you provide the ChartMill fundamental rating for JOHNSON & JOHNSON?
ChartMill assigns a fundamental rating of 5 / 10 to JNJ.DE.
What is the valuation status of JOHNSON & JOHNSON (JNJ.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to JOHNSON & JOHNSON (JNJ.DE). This can be considered as Overvalued.
What is the profitability of JNJ stock?
JOHNSON & JOHNSON (JNJ.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for JNJ stock?
The financial health rating of JOHNSON & JOHNSON (JNJ.DE) is 5 / 10.
Is the dividend of JOHNSON & JOHNSON sustainable?
The dividend rating of JOHNSON & JOHNSON (JNJ.DE) is 5 / 10 and the dividend payout ratio is 48.7%.