JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - NYSE:JNJ - US4781601046 - Common Stock
190.4 USD
-2.07 (-1.08%)
190.4 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to JNJ. JNJ was compared to 191 industry peers in the Pharmaceuticals industry. JNJ has an excellent profitability rating, but there are some minor concerns on its financial health. JNJ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
JNJ had positive earnings in the past year.
JNJ had a positive operating cash flow in the past year.
JNJ had positive earnings in each of the past 5 years.
In the past 5 years JNJ always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.72%, JNJ belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
JNJ has a better Return On Equity (28.88%) than 94.76% of its industry peers.
The Return On Invested Capital of JNJ (13.62%) is better than 91.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JNJ is in line with the industry average of 15.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROIC | 13.62% |
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
Looking at the Profit Margin, with a value of 25.00%, JNJ belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
In the last couple of years the Profit Margin of JNJ has declined.
With an excellent Operating Margin value of 25.69%, JNJ belongs to the best of the industry, outperforming 92.67% of the companies in the same industry.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a better Gross Margin (67.97%) than 75.92% of its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% |
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.
The number of shares outstanding for JNJ remains at a similar level compared to 1 year ago.
The number of shares outstanding for JNJ has been reduced compared to 5 years ago.
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
JNJ has an Altman-Z score of 4.49. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
JNJ has a Altman-Z score of 4.49. This is in the better half of the industry: JNJ outperforms 76.96% of its industry peers.
The Debt to FCF ratio of JNJ is 2.74, which is a good value as it means it would take JNJ, 2.74 years of fcf income to pay off all of its debts.
JNJ's Debt to FCF ratio of 2.74 is amongst the best of the industry. JNJ outperforms 90.58% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that JNJ is somewhat dependend on debt financing.
JNJ's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. JNJ is outperformed by 65.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.5
WACC9.1%
2.3 Liquidity
JNJ has a Current Ratio of 1.01. This is a normal value and indicates that JNJ is financially healthy and should not expect problems in meeting its short term obligations.
JNJ has a Current ratio of 1.01. This is amonst the worse of the industry: JNJ underperforms 81.68% 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.
The Quick ratio of JNJ (0.76) is worse than 84.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% over the past year.
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 5.08%.
JNJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
3.2 Future
JNJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
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
A Price/Earnings ratio of 18.34 indicates a rather expensive valuation of JNJ.
Based on the Price/Earnings ratio, JNJ is valued cheaper than 84.82% of the companies in the same industry.
JNJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.33, which indicates a correct valuation of JNJ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JNJ indicates a somewhat cheap valuation: JNJ is cheaper than 79.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of JNJ to the average of the S&P500 Index (22.92), we can say JNJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaply inside the industry as 82.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, JNJ is valued cheaper than 81.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.72 | ||
| EV/EBITDA | 15.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JNJ does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of JNJ may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)6.43
EPS Next 2Y8.02%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.71%.
Compared to an average industry Dividend Yield of 6.88, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, JNJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
JNJ has paid a dividend for at least 10 years, which is a reliable track record.
JNJ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.24%
Div Incr Years34
Div Non Decr Years34
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.
The dividend of JNJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.34%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
190.4
-2.07 (-1.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner Change-0.23%
Ins Owners0.04%
Ins Owner Change-0.1%
Market Cap458.55B
Revenue(TTM)92.15B
Net Income(TTM)22.66B
Analysts74.84
Price Target183.86 (-3.43%)
Short Float %0.76%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.76%
PT rev (3m)6.06%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.33 | ||
| P/S | 5.06 | ||
| P/FCF | 24.72 | ||
| P/OCF | 19.91 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.48 |
EPS(TTM)10.38
EY5.45%
EPS(NY)11.66
Fwd EY6.12%
FCF(TTM)7.7
FCFY4.05%
OCF(TTM)9.56
OCFY5.02%
SpS37.63
BVpS32.58
TBVpS-8.09
PEG (NY)1.85
PEG (5Y)6.43
Graham Number87.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 28.88% | ||
| ROCE | 16.73% | ||
| ROIC | 13.62% | ||
| ROICexc | 15.61% | ||
| ROICexgc | 65.14% | ||
| OM | 25.69% | ||
| PM (TTM) | 25% | ||
| GM | 67.97% | ||
| 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%
ROICexgc growth 3Y1.2%
ROICexgc 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 | 1.55 | ||
| Cap/Depr | 60.06% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.91% | ||
| Profit Quality | 81.85% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.49 |
F-Score4
WACC9.1%
ROIC/WACC1.5
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)1.37%
EPS 3Y0.64%
EPS 5Y2.85%
EPS Q2Q%15.7%
EPS Next Y9.89%
EPS Next 2Y8.02%
EPS Next 3Y7.7%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.63%
Revenue Next 2Y5.47%
Revenue Next 3Y5.26%
Revenue Next 5Y4.82%
EBIT growth 1Y-6.56%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year28.57%
EBIT Next 3Y12.7%
EBIT Next 5Y8.43%
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%
JOHNSON & JOHNSON / JNJ FAQ
Can you provide the ChartMill fundamental rating for JOHNSON & JOHNSON?
ChartMill assigns a fundamental rating of 6 / 10 to JNJ.
What is the valuation status for JNJ stock?
ChartMill assigns a valuation rating of 6 / 10 to JOHNSON & JOHNSON (JNJ). This can be considered as Fairly Valued.
What is the profitability of JNJ stock?
JOHNSON & JOHNSON (JNJ) has a profitability rating of 8 / 10.
What is the financial health of JOHNSON & JOHNSON (JNJ) stock?
The financial health rating of JOHNSON & JOHNSON (JNJ) is 5 / 10.
How sustainable is the dividend of JOHNSON & JOHNSON (JNJ) stock?
The dividend rating of JOHNSON & JOHNSON (JNJ) is 6 / 10 and the dividend payout ratio is 53.34%.