JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNJ - US4781601046 - Common Stock
214.76 USD
+3.18 (+1.5%)
JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. While JNJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. JNJ has a decent growth rate and is not valued too expensively. JNJ also has an excellent dividend rating. This makes JNJ very considerable for dividend investing!
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.
Each year in the past 5 years JNJ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.03%, JNJ belongs to the top of the industry, outperforming 93.19% of the companies in the same industry.
JNJ's Return On Equity of 31.69% is amongst the best of the industry. JNJ outperforms 93.72% of its industry peers.
JNJ's Return On Invested Capital of 14.68% is amongst the best of the industry. JNJ outperforms 94.24% of its industry peers.
JNJ had an Average Return On Invested Capital over the past 3 years of 15.41%. This is above the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROIC | 14.68% |
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
JNJ's Profit Margin of 27.26% is amongst the best of the industry. JNJ outperforms 92.67% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
JNJ has a Operating Margin of 27.00%. This is amongst the best in the industry. JNJ outperforms 92.67% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ has a Gross Margin of 68.14%. This is in the better half of the industry: JNJ outperforms 76.96% of its industry peers.
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 | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% |
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.
Compared to 1 year ago, JNJ has about the same amount of shares outstanding.
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 4.84. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.84, JNJ is in the better half of the industry, outperforming 74.35% of the companies in the same industry.
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.
JNJ has a Debt to FCF ratio of 2.34. This is amongst the best in the industry. JNJ outperforms 92.67% of its industry peers.
JNJ has a Debt/Equity ratio of 0.55. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of JNJ (0.55) is worse than 65.44% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.84 |
ROIC/WACC1.51
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.07 indicates that JNJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, JNJ is not doing good in the industry: 82.72% of the companies in the same industry are doing better.
JNJ has a Quick Ratio of 1.07. This is a bad value and indicates that JNJ is not financially healthy enough and could expect problems in meeting its short term obligations.
JNJ has a Quick ratio of 0.80. This is amonst the worse of the industry: JNJ underperforms 82.20% of its industry peers.
JNJ does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
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.
The Revenue has been growing slightly by 5.08% in the past year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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 7.68% yearly.
JNJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y9.83%
EPS Next 2Y7.97%
EPS Next 3Y7.73%
EPS Next 5Y7.68%
Revenue Next Year5.6%
Revenue Next 2Y5.44%
Revenue Next 3Y5.28%
Revenue Next 5Y5.29%
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 rather expensively with a Price/Earnings ratio of 20.69.
Compared to the rest of the industry, the Price/Earnings ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 80.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JNJ to the average of the S&P500 Index (26.56), we can say JNJ is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of JNJ can be described as rather expensive.
77.49% of the companies in the same industry are more expensive than JNJ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, JNJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNJ is valued cheaper than 80.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNJ indicates a rather cheap valuation: JNJ is cheaper than 81.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 16.19 |
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.
JNJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)7.26
EPS Next 2Y7.97%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
JNJ has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
JNJ's Dividend Yield is rather good when compared to the industry average which is at 0.52. JNJ pays more dividend than 93.72% of the companies in the same industry.
JNJ's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.24%
Div Incr Years34
Div Non Decr Years34
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 2Y7.97%
EPS Next 3Y7.73%
NYSE:JNJ (12/15/2025, 3:00:08 PM)
214.76
+3.18 (+1.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change0.02%
Ins Owners0.03%
Ins Owner Change-0.56%
Market Cap517.42B
Revenue(TTM)92.15B
Net Income(TTM)25.12B
Analysts75.63
Price Target206.71 (-3.75%)
Short Float %0.84%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend4.91
Dividend Growth(5Y)9.24%
DP48.7%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)1.32%
PT rev (3m)13.28%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 18.44 | ||
| P/S | 5.62 | ||
| P/FCF | 26.4 | ||
| P/OCF | 21.38 | ||
| P/B | 6.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)10.38
EY4.83%
EPS(NY)11.65
Fwd EY5.42%
FCF(TTM)8.13
FCFY3.79%
OCF(TTM)10.05
OCFY4.68%
SpS38.25
BVpS32.9
TBVpS-7.27
PEG (NY)2.11
PEG (5Y)7.26
Graham Number87.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 31.69% | ||
| ROCE | 17.53% | ||
| ROIC | 14.68% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 69.32% | ||
| OM | 27% | ||
| PM (TTM) | 27.26% | ||
| GM | 68.14% | ||
| FCFM | 21.27% |
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-Score5
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 | 4.84 |
F-Score5
WACC9.75%
ROIC/WACC1.51
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 Y9.83%
EPS Next 2Y7.97%
EPS Next 3Y7.73%
EPS Next 5Y7.68%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%6.77%
Revenue Next Year5.6%
Revenue Next 2Y5.44%
Revenue Next 3Y5.28%
Revenue Next 5Y5.29%
EBIT growth 1Y2.89%
EBIT growth 3Y4.44%
EBIT growth 5Y4.79%
EBIT Next Year30.64%
EBIT Next 3Y13.37%
EBIT Next 5Y8.85%
FCF growth 1Y24.53%
FCF growth 3Y0.14%
FCF growth 5Y-0.08%
OCF growth 1Y19.36%
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 6 / 10.
How sustainable is the dividend of JOHNSON & JOHNSON (JNJ) stock?
The dividend rating of JOHNSON & JOHNSON (JNJ) is 7 / 10 and the dividend payout ratio is 48.7%.