Johnson & Johnson
Exchange: NYSESector: HealthcareIndustry: Drug Manufacturers - General
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow and profoundly impact health for humanity.
Did you know?
Net income compounded at 10.0% annually over 6 years.
Current Price
$243.04
-0.44%GoodMoat Value
$210.09
13.6% overvaluedProfile
Valuation (TTM)
Market Cap$585.56B
P/E21.85
EV$595.03B
P/B7.18
Shares Out2.41B
P/Sales6.22
Revenue$94.19B
EV/EBITDA14.94
Johnson & Johnson (JNJ) Stock Analysis
GoodMoat Analysis
Johnson & Johnson is a healthcare giant with a durable moat built on brand, scale, and vertical integration, but its current valuation appears full. The stock's price is above the GoodMoat target, suggesting a limited margin of safety for a value investor.
Read full analysis
Johnson & Johnson (JNJ) is a diversified healthcare behemoth operating across pharmaceuticals, medical devices, and consumer health. Its competitive advantages are substantial. Applying the GoodMoat framework, JNJ likely scores high on several moat criteria, including a powerful global brand, significant scale advantages in R&D and distribution, and a degree of vertical integration across its segments. The company's financial quality is strong, with a robust ROE of 32.9%, a healthy profit margin of 28.5%, and moderate debt. However, its 9.1% revenue growth is solid but not exceptional for its sector. The primary question is valuation. At a price of $239.93, the stock trades above the GoodMoat target of $210.09, indicating a negative margin of safety. The P/E of 21.6x and a modest FCF yield of 3.4% suggest the market is pricing in its quality and stability, leaving little room for error. Following the Decision Framework, JNJ likely passes the Moat & Quality Gate but enters the Valuation & Risk Gate 'with caution.' The elevated price relative to the target value and single-digit revenue growth mean a value investor would need a very high conviction in its future execution to find the current price favourable. It is a high-quality business, but further investigation should focus on whether a more attractive entry point exists.
Market Cap$585.56B
Current Price$243.04
P/E Ratio21.85
Forward P/E—
PEG Ratio0.44
EPS$11.03
Book Value$33.85
P/B Ratio7.18
JNJ Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -0.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 28.2B
Revenue
82.1B
FY19
82.6B
FY21
78.7B
FY22
80.0B
FY23
85.2B
FY23
88.8B
FY24
94.2B
FY25
Net Income
15.1B
FY19
14.7B
FY21
20.9B
FY22
17.9B
FY23
35.2B
FY23
14.1B
FY24
26.8B
FY25
JNJ 52-Week Range
$142.42
$248.56
50-Day MA: $238.36200-Day MA: $196.65
Did you know?
Net income compounded at 10.0% annually over 6 years.
Johnson & Johnson (JNJ) Financial Summary
Johnson & Johnson (JNJ) is a Healthcare company in the Drug Manufacturers - General industry, listed on NYSE. The stock currently trades at $243.04 with a market capitalization of $585.56B.
Key valuation metrics include a P/E ratio of 21.85, price-to-book ratio of 7.18, and EPS of $11.03. The company reports a profit margin of 28.5% and return on equity of 32.9%.
JNJ Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $585.56B |
| P/E Ratio | 21.85 |
| EPS | $11.03 |
| P/B Ratio | 7.18 |
| P/S Ratio | 6.22 |
| EV/EBITDA | 14.94 |
| Dividend Yield | 2.11% |
| Profit Margin | 28.5% |
| Return on Equity | 32.9% |
| Debt/Equity | 0.59 |
JNJ Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $82.06B | $15.12B |
| FY21 | $82.58B | $14.71B |
| FY22 | $78.74B | $20.88B |
| FY23 | $79.99B | $17.94B |
| FY23 | $85.16B | $17.94B |
| FY24 | $88.82B | $14.07B |
| FY25 | $94.19B | $26.80B |
Johnson & Johnson (JNJ) Valuation
Based on GoodMoat's DCF model, Johnson & Johnson has a fair value estimate of $210.09. At the current price of $243.04, the stock appears 15.7% overvalued relative to our intrinsic value estimate.
JNJ Quality Indicators
Johnson & Johnson maintains a profit margin of 28.5% and an operating margin of 26.8%. Return on equity stands at 32.9%. The current ratio is 1.03. Debt-to-equity ratio is 0.59.
About Johnson & Johnson
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow and profoundly impact health for humanity.
JNJ Free Cash Flow
Johnson & Johnson generated $19.70B in trailing twelve-month free cash flow, representing an FCF yield of 3.36%. This moderate FCF yield indicates reasonable cash generation.
JNJ Shares Outstanding
Johnson & Johnson has 2.41 billion shares outstanding at a share price of $243.04, giving it a market capitalization of $585.56B.
JNJ Recent Insider Trades
Recent insider transactions at Johnson & Johnson include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Decker Robert J (VP Corporate Controller) | SELL | 4,075 | $1.01M |
| Schmid Timothy (EVP, WW Chair, MedTech) | SELL | 1,322 | $324762.52 |
| Schmid Timothy (EVP, WW Chair, MedTech) | SELL | 13,625 | $3.33M |