JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis
FRA:JNJ - Deutsche Boerse Ag - US4781601046 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to JNJ. 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 has a correct valuation and a medium growth rate.
1. Profitability
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.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of JNJ (11.72%) is better than 78.43% of its industry peers.
JNJ has a better Return On Equity (28.88%) than 78.43% of its industry peers.
The Return On Invested Capital of JNJ (13.57%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNJ is in line with the industry average of 15.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.57% |
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
The Profit Margin of JNJ (25.00%) is better than 86.27% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
JNJ has a better Operating Margin (25.61%) than 72.55% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
With a Gross Margin value of 67.98%, JNJ perfoms like the industry average, outperforming 45.10% of the companies in the same 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 | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% |
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
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, JNJ has less shares outstanding
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.21 indicates that JNJ is not in any danger for bankruptcy at the moment.
The Altman-Z score of JNJ (4.21) is better than 64.71% of its industry peers.
JNJ has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as JNJ would need 2.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.74, JNJ is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
JNJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
JNJ has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.38
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.01 indicates that JNJ should not have too much problems paying its short term obligations.
JNJ has a worse Current ratio (1.01) than 72.55% of its industry peers.
JNJ has a Quick Ratio of 1.01. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, JNJ is not doing good in the industry: 74.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
JNJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.58%.
The Earnings Per Share has been growing slightly by 2.85% on average over the past years.
JNJ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
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 Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue Next Year5.2%
Revenue Next 2Y4.9%
Revenue Next 3Y4.76%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
JNJ is valuated correctly with a Price/Earnings ratio of 16.97.
JNJ's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (26.54), we can say JNJ is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.07 indicates a correct valuation of JNJ.
The rest of the industry has a similar Price/Forward Earnings ratio as JNJ.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (35.28), we can say JNJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 15.07 |
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.
JNJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)5.95
EPS Next 2Y6.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 3.16%.
JNJ's Dividend Yield is a higher than the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.40, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 53.34% 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.
DP53.34%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
FRA:JNJ (8/7/2025, 5:20:49 PM)
146.28
-1.04 (-0.71%)
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 Cap352.29B
Analysts72.41
Price Target149.16 (1.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend4.31
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.13%
Min EPS beat(2)2.3%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)0.68%
Max EPS beat(4)8.28%
EPS beat(8)7
Avg EPS beat(8)3.3%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)14
Avg EPS beat(16)3.64%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.92%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)-3.28%
Revenue beat(16)6
Avg Revenue beat(16)-8.51%
PT rev (1m)-1.42%
PT rev (3m)-1.9%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)2.64%
Revenue NQ rev (3m)4.49%
Revenue NY rev (1m)2.24%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 15.07 | ||
| P/S | 4.51 | ||
| P/FCF | 22.04 | ||
| P/OCF | 17.75 | ||
| P/B | 5.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.83 |
EPS(TTM)8.62
EY5.89%
EPS(NY)9.7
Fwd EY6.63%
FCF(TTM)6.64
FCFY4.54%
OCF(TTM)8.24
OCFY5.63%
SpS32.43
BVpS28.08
TBVpS-6.97
PEG (NY)2.27
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.67% | ||
| ROIC | 13.57% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 64.93% | ||
| OM | 25.61% | ||
| PM (TTM) | 25% | ||
| GM | 67.98% | ||
| FCFM | 20.47% |
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.21 |
F-Score4
WACC9.86%
ROIC/WACC1.38
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)-4.58%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%-1.77%
EPS Next Y7.46%
EPS Next 2Y6.17%
EPS Next 3Y6.44%
EPS Next 5Y5.89%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year5.2%
Revenue Next 2Y4.9%
Revenue Next 3Y4.76%
Revenue Next 5Y3.87%
EBIT growth 1Y-6.86%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year24.74%
EBIT Next 3Y11.9%
EBIT Next 5Y7.92%
FCF growth 1Y27.51%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y20.74%
OCF growth 3Y1.2%
OCF growth 5Y0.72%