JOHNSON & JOHNSON (JNJ) Stock Fundamental Analysis
USA - NYSE:JNJ - US4781601046 - Common Stock
188.64 USD
+2.66 (+1.43%)
188.76 USD
+0.12 (+0.06%)
JNJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 196 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 decent growth rate and is not valued too expensively. JNJ also has an excellent dividend rating. These ratings would make JNJ suitable for dividend investing!
1. Profitability
1.1 Basic Checks
JNJ had positive earnings in the past year.
In the past year JNJ had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.72%, JNJ belongs to the best of the industry, outperforming 93.37% of the companies in the same industry.
The Return On Equity of JNJ (28.88%) is better than 94.39% of its industry peers.
JNJ has a better Return On Invested Capital (13.57%) than 91.84% 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 15.28%.
| 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
JNJ's Profit Margin of 25.00% is amongst the best of the industry. JNJ outperforms 94.90% of its industry peers.
In the last couple of years the Profit Margin of JNJ has declined.
JNJ's Operating Margin of 25.61% is amongst the best of the industry. JNJ outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of JNJ has grown nicely.
JNJ's Gross Margin of 67.98% is fine compared to the rest of the industry. JNJ outperforms 75.51% of its industry peers.
JNJ's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JNJ is still 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.
JNJ has a worse debt/assets ratio than last year.
2.2 Solvency
JNJ has an Altman-Z score of 4.40. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
JNJ has a Altman-Z score of 4.40. This is in the better half of the industry: JNJ outperforms 78.57% 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.
JNJ's Debt to FCF ratio of 2.74 is amongst the best of the industry. JNJ outperforms 90.82% of its industry peers.
JNJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating JNJ is somewhat dependend on debt financing.
The Debt to Equity ratio of JNJ (0.61) is worse than 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.33
WACC10.19%
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's Current ratio of 1.01 is on the low side compared to the rest of the industry. JNJ is outperformed by 80.61% of its industry peers.
A Quick Ratio of 0.76 indicates that JNJ may have some problems paying its short term obligations.
JNJ has a Quick ratio of 0.76. This is amonst the worse of the industry: JNJ underperforms 82.14% 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 for JNJ have decreased by -4.58% in the last year.
Measured over the past 5 years, JNJ shows a small growth in Earnings Per Share. The EPS has been growing by 2.85% on average per year.
Looking at the last year, JNJ shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
The Revenue has been growing slightly by 1.60% on average over the past years.
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 6.46% yearly.
Based on estimates for the next years, JNJ will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.17%
EPS Next 3Y6.91%
EPS Next 5Y6.46%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.86, the valuation of JNJ can be described as rather expensive.
JNJ's Price/Earnings ratio is rather cheap when compared to the industry. JNJ is cheaper than 83.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, JNJ is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.44, JNJ is valued correctly.
Based on the Price/Forward Earnings ratio, JNJ is valued a bit cheaper than the industry average as 79.08% of the companies are valued more expensively.
JNJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
JNJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JNJ is cheaper than 82.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JNJ is valued cheaply inside the industry as 83.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 15.01 |
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)1.92
PEG (5Y)6.62
EPS Next 2Y7.17%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, JNJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.44, JNJ pays a better dividend. On top of this JNJ pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, JNJ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
JNJ has been paying a dividend for at least 10 years, so it has 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 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 2Y7.17%
EPS Next 3Y6.91%
188.64
+2.66 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.46%
Inst Owner Change0.11%
Ins Owners0.04%
Ins Owner Change-0.1%
Market Cap454.31B
Analysts73.55
Price Target182.48 (-3.27%)
Short Float %0.92%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)1.28%
PT rev (3m)5.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)0%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 16.44 | ||
| P/S | 5.01 | ||
| P/FCF | 24.49 | ||
| P/OCF | 19.73 | ||
| P/B | 5.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.01 |
EPS(TTM)10
EY5.3%
EPS(NY)11.47
Fwd EY6.08%
FCF(TTM)7.7
FCFY4.08%
OCF(TTM)9.56
OCFY5.07%
SpS37.63
BVpS32.58
TBVpS-8.09
PEG (NY)1.92
PEG (5Y)6.62
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 | 4.4 |
F-Score4
WACC10.19%
ROIC/WACC1.33
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 Y9.8%
EPS Next 2Y7.17%
EPS Next 3Y6.91%
EPS Next 5Y6.46%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y4.1%
Revenue growth 5Y1.6%
Sales Q2Q%5.77%
Revenue Next Year5.2%
Revenue Next 2Y4.89%
Revenue Next 3Y4.76%
Revenue Next 5Y4.69%
EBIT growth 1Y-6.86%
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%