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JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis

USA - NYSE:JNJ - US4781601046 - Common Stock

190.4 USD
-2.07 (-1.08%)
Last: 10/24/2025, 8:04:00 PM
190.4 USD
0 (0%)
After Hours: 10/24/2025, 8:04:00 PM
Fundamental Rating

6

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.


Dividend Valuation Growth Profitability Health

8

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.
JNJ Yearly Net Income VS EBIT VS OCF VS FCFJNJ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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 RankSector 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%
JNJ Yearly ROA, ROE, ROICJNJ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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 RankSector 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%
JNJ Yearly Profit, Operating, Gross MarginsJNJ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

5

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.
JNJ Yearly Shares OutstandingJNJ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
JNJ Yearly Total Debt VS Total AssetsJNJ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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 RankSector Rank
Debt/Equity 0.61
Debt/FCF 2.74
Altman-Z 4.49
ROIC/WACC1.5
WACC9.1%
JNJ Yearly LT Debt VS Equity VS FCFJNJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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 RankSector Rank
Current Ratio 1.01
Quick Ratio 0.76
JNJ Yearly Current Assets VS Current LiabilitesJNJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

4

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.
JNJ Yearly Revenue VS EstimatesJNJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
JNJ Yearly EPS VS EstimatesJNJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

6

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 RankSector Rank
PE 18.34
Fwd PE 16.33
JNJ Price Earnings VS Forward Price EarningsJNJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 24.72
EV/EBITDA 15.48
JNJ Per share dataJNJ 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 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%

6

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 RankSector 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
JNJ Yearly Dividends per shareJNJ Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

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%
JNJ Yearly Income VS Free CF VS DividendJNJ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B
JNJ Dividend Payout.JNJ Dividend Payout, showing the Payout Ratio.JNJ Dividend Payout.PayoutRetained Earnings

JOHNSON & JOHNSON

NYSE:JNJ (10/24/2025, 8:04:00 PM)

After market: 190.4 0 (0%)

190.4

-2.07 (-1.08%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-21 2026-01-21/amc
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 RankSector Rank
Dividend Yield 2.71%
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP53.34%
Div Incr Years34
Div Non Decr Years34
Ex-Date11-25 2025-11-25 (1.3)
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 RankSector 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 RankSector 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 RankSector 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%.