JOHNSON & JOHNSON (JNJ.DE) Stock Fundamental Analysis

FRA:JNJ • US4781601046

207.5 EUR
-1.65 (-0.79%)
Last: Feb 25, 2026, 05:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

5

Overall JNJ gets a fundamental rating of 5 out of 10. We evaluated JNJ against 52 industry peers in the Pharmaceuticals industry. JNJ scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, JNJ is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

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 each of the past 5 years.
JNJ.DE Yearly Net Income VS EBIT VS OCF VS FCFJNJ.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

1.2 Ratios

  • JNJ has a better Return On Assets (13.46%) than 86.54% of its industry peers.
  • The Return On Equity of JNJ (32.87%) is better than 78.85% of its industry peers.
  • JNJ has a Return On Invested Capital of 14.37%. This is in the better half of the industry: JNJ outperforms 71.15% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for JNJ is above the industry average of 14.12%.
Industry RankSector 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%
JNJ.DE Yearly ROA, ROE, ROICJNJ.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • JNJ's Profit Margin of 28.46% is amongst the best of the industry. JNJ outperforms 90.38% of its industry peers.
  • JNJ's Profit Margin has improved in the last couple of years.
  • JNJ has a Operating Margin of 27.78%. This is in the better half of the industry: JNJ outperforms 73.08% of its industry peers.
  • JNJ's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 67.92%, JNJ is in line with its industry, outperforming 46.15% of the companies in the same industry.
  • JNJ's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
JNJ.DE Yearly Profit, Operating, Gross MarginsJNJ.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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 about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
  • The debt/assets ratio for JNJ is higher compared to a year ago.
JNJ.DE Yearly Shares OutstandingJNJ.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
JNJ.DE Yearly Total Debt VS Total AssetsJNJ.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • JNJ has an Altman-Z score of 5.13. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.13, JNJ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • 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.
  • JNJ has a Debt to FCF ratio of 2.43. This is in the better half of the industry: JNJ outperforms 78.85% of its industry peers.
  • 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 in line compared to the rest of the industry. JNJ outperforms 57.69% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.43
Altman-Z 5.13
ROIC/WACC1.52
WACC9.43%
JNJ.DE Yearly LT Debt VS Equity VS FCFJNJ.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.3 Liquidity

  • JNJ has a Current Ratio of 1.03. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting 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 78.85% of its industry peers.
  • A Quick Ratio of 0.77 indicates that JNJ may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.77, JNJ is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.77
JNJ.DE Yearly Current Assets VS Current LiabilitesJNJ.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • 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%.
  • 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

  • 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.
  • 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.
JNJ.DE Yearly Revenue VS EstimatesJNJ.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
JNJ.DE Yearly EPS VS EstimatesJNJ.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.63 indicates a rather expensive valuation of JNJ.
  • Compared to the rest of the industry, the Price/Earnings ratio of JNJ is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.05, JNJ is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.98, the valuation of JNJ can be described as rather expensive.
  • JNJ's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (28.03), we can say JNJ is valued slightly cheaper.
Industry RankSector Rank
PE 22.63
Fwd PE 20.98
JNJ.DE Price Earnings VS Forward Price EarningsJNJ.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNJ.
  • JNJ's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.89
EV/EBITDA 17.94
JNJ.DE Per share dataJNJ.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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)2.87
PEG (5Y)3.71
EPS Next 2Y8.2%
EPS Next 3Y8.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.11%, JNJ has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.89, JNJ has a dividend in line with its industry peers.
  • JNJ's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.11%

5.2 History

  • The dividend of JNJ is nicely growing with an annual growth rate of 7.68%!
Dividend Growth(5Y)7.68%
Div Incr Years6
Div Non Decr Years6
JNJ.DE Yearly Dividends per shareJNJ.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 46.19% of the earnings are spent on dividend by JNJ. This is a bit on the high side, but may be sustainable.
  • JNJ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP46.19%
EPS Next 2Y8.2%
EPS Next 3Y8.39%
JNJ.DE Yearly Income VS Free CF VS DividendJNJ.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B
JNJ.DE Dividend Payout.JNJ.DE Dividend Payout, showing the Payout Ratio.JNJ.DE Dividend Payout.PayoutRetained Earnings

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JOHNSON & JOHNSON

FRA:JNJ (2/25/2026, 5:21:44 PM)

207.5

-1.65 (-0.79%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)04-14
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap499.93B
Revenue(TTM)94.19B
Net Income(TTM)26.80B
Analysts75.63
Price Target197.22 (-4.95%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend4.37
Dividend Growth(5Y)7.68%
DP46.19%
Div Incr Years6
Div Non Decr Years6
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)8
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-4.44%
PT rev (1m)7.91%
PT rev (3m)11.98%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.84%
Valuation
Industry RankSector Rank
PE 22.63
Fwd PE 20.98
P/S 6.25
P/FCF 29.89
P/OCF 24
P/B 7.22
P/tB N/A
EV/EBITDA 17.94
EPS(TTM)9.17
EY4.42%
EPS(NY)9.89
Fwd EY4.77%
FCF(TTM)6.94
FCFY3.35%
OCF(TTM)8.65
OCFY4.17%
SpS33.2
BVpS28.74
TBVpS-6.21
PEG (NY)2.87
PEG (5Y)3.71
Graham Number77
Profitability
Industry RankSector 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 RankSector 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 5.13
F-Score4
WACC9.43%
ROIC/WACC1.52
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 Year23.35%
EBIT Next 3Y11.24%
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 & 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 7 / 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 4 / 10 and the dividend payout ratio is 46.19%.