Johnson & Johnson
Johnson & Johnson Fundamental Analysis
Johnson & Johnson (JNJ.SW) shows strong financial fundamentals with a PE ratio of 27.01, profit margin of 29.40%, and ROE of 26.35%. The company generates N/A in annual revenue with moderate year-over-year growth of 4.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze JNJ.SW's fundamental strength across five key dimensions:
Efficiency Score
ExcellentJNJ.SW demonstrates superior asset utilization.
Valuation Score
WeakJNJ.SW trades at a premium to fair value.
Growth Score
WeakJNJ.SW faces weak or negative growth trends.
Financial Health Score
ExcellentJNJ.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateJNJ.SW maintains healthy but balanced margins.
Key Financial Metrics
Is JNJ.SW Expensive or Cheap?
P/E Ratio
JNJ.SW trades at 27.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JNJ.SW's PEG of 6.49 indicates potential overvaluation.
Price to Book
The market values Johnson & Johnson at 7.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.97 times EBITDA. This is generally considered low.
How Well Does JNJ.SW Make Money?
Net Profit Margin
For every $100 in sales, Johnson & Johnson keeps $29.40 as profit after all expenses.
Operating Margin
Core operations generate 24.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.35 in profit for every $100 of shareholder equity.
ROA
Johnson & Johnson generates $11.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $4.20 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.009
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How JNJ.SW Stacks Against Its Sector Peers
| Metric | JNJ.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.01 | 28.48 | Neutral |
| ROE | 26.35% | 777.00% | Weak |
| Net Margin | 29.40% | -20226.00% (disorted) | Strong |
| Debt/Equity | 0.65 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.01 | 4.66 | Neutral |
| ROA | 11.24% | -14638.00% (disorted) | Strong |
JNJ.SW outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Johnson & Johnson's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.37%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
1.74%
Industry Style: Defensive, Growth, Innovation
GrowingFCF CAGR
13.32%
Industry Style: Defensive, Growth, Innovation
High Growth