JNJ Stock Analysis: Johnson & Johnson | NYSE
Drug Manufacturers - General | NYSE, USA | Market Cap: 589.479m USD | 12M Return: 70.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.06B
EPS Trend: 10.9%
Qual. Beats: 0
Rev. Trend: 79.3%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Johnson & Johnson (NYSE: JNJ) is a global healthcare company founded in 1886 and headquartered in New Brunswick, New Jersey. It operates through two main segments: Innovative Medicine, which focuses on prescription pharmaceuticals across therapeutic areas including oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolic diseases; and MedTech, which provides medical devices and technologies for surgery, orthopedics, cardiovascular care, and vision. MedTech products serve professional use in hospitals, clinics, and physicians offices, spanning joint reconstruction, trauma, spine, sports injuries, open and robotic surgical procedures, wound closure, breast aesthetics, and contact lenses under brands such as ACUVUE and TECNIS. Distribution channels include wholesalers, retailers, distributors, hospitals, and healthcare professionals.
The company is classified within the GICS Health Care sector and is one of the largest U.S. pharmaceutical issuers by market capitalization, listed on the NYSE since 1944. Its dual-segment structure combines the higher-margin, patent-driven economics of branded pharmaceuticals with the more diversified, equipment- and consumables-based revenue model typical of large medical device businesses.
- Talc litigation reserves and settlement costs pressure earnings outlook
- Stelara biosimilar competition erodes Innovative Medicine segment revenue
- MedTech cardiovascular and vision portfolio growth offsets surgical weakness
| Net Income: 21.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -0.74 > 1.0 |
| NWC/Revenue: 1.51% < 20% (prev 16.40%; Δ -14.89% < -1%) |
| CFO/TA 0.11 > 3% & CFO 22.9b > Net Income 21.0b |
| Net Debt (32.9b) to EBITDA (33.5b): 0.98 < 3 |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.45b) vs 12m ago 0.88% < -2% |
| Gross Margin: 69.12% > 18% (prev 68.30%; Δ 0.82% > 0.5%) |
| Asset Turnover: 48.84% > 50% (prev 46.13%; Δ 2.72% > 0%) |
| Interest Coverage Ratio: 24.79 > 6 (EBIT TTM 25.8b / Interest Expense TTM 1.04b) |
| A: 0.01 (Total Current Assets 59.2b - Total Current Liabilities 57.7b) / Total Assets 201b |
| B: 0.84 (Retained Earnings 169b / Total Assets 201b) |
| C: 0.13 (EBIT TTM 25.8b / Avg Total Assets 197b) |
| D: 0.68 (Book Value of Equity 81.2b / Total Liabilities 120b) |
| Altman-Z'' = 4.38 = AA |
| DSRI: 1.03 (Receivables 17.7b/16.0b, Revenue 96.4b/89.3b) |
| GMI: 0.99 (GM 68.30% / 69.12%) |
| AQI: 0.83 (AQ_t 0.43 / AQ_t-1 0.52) |
| SGI: 1.08 (Revenue 96.4b / 89.3b) |
| TATA: -0.01 (NI 21.0b - CFO 22.9b) / TA 201b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of July 01, 2026, the stock is trading at USD 258.51 with a total of 8,437,817 shares traded. Over the past week, the price has changed by +11.50%, over one month by +10.34%, over three months by +5.63% and over the past year by +70.90%.
Current recommended Stop Loss: 251.30 (which is 2.8% or 1.3 ATR below the current price).
Johnson & Johnson has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold JNJ.
- StrongBuy: 7
- Buy: 4
- Hold: 13
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 257.3 | -0.5% |
P/E Trailing = 28.4084
P/E Forward = 21.1864
P/S = 6.1173
P/B = 7.2608
P/EG = 4.7034
Revenue TTM = 96.4b USD
EBIT TTM = 25.8b USD
EBITDA TTM = 33.5b USD
Long Term Debt = 37.5b USD (from longTermDebt, last quarter)
Short Term Debt = 17.5b USD (from shortTermDebt, last quarter)
Debt = 55.0b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 32.9b USD (calculated: Debt 55.0b - CCE 22.1b)
Enterprise Value = 622b USD (589b + Debt 55.0b - CCE 22.1b)
Interest Coverage Ratio = 24.79 (Ebit TTM 25.8b / Interest Expense TTM 1.04b)
EV/FCF = 34.97x (Enterprise Value 622b / FCF TTM 17.8b)
FCF Yield = 2.86% (FCF TTM 17.8b / Enterprise Value 622b)
FCF Margin = 18.47% (FCF TTM 17.8b / Revenue TTM 96.4b)
Net Margin = 21.83% (Net Income TTM 21.0b / Revenue TTM 96.4b)
Gross Margin = 69.12% ((Revenue TTM 96.4b - Cost of Revenue TTM 29.8b) / Revenue TTM)
Gross Margin QoQ = 71.49% (prev 67.56%)
Tobins Q-Ratio = 3.10 (Enterprise Value 622b / Total Assets 201b)
Interest Expense / Debt = 1.89% (Interest Expense 1.04b / Debt 55.0b)
Taxrate = 15.64% (3.90b / 24.9b)
NOPAT = 21.7b (EBIT 25.8b * (1 - 15.64%))
Current Ratio = 1.03 (Total Current Assets 59.2b / Total Current Liabilities 57.7b)
Debt / Equity = 0.68 (Debt 55.0b / totalStockholderEquity, last quarter 81.2b)
Debt / EBITDA = 0.98 (Net Debt 32.9b / EBITDA 33.5b)
Debt / FCF = 1.85 (Net Debt 32.9b / FCF TTM 17.8b)
Total Stockholder Equity = 80.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.66% (Net Income 21.0b / Total Assets 201b)
RoE = 26.26% (Net Income TTM 21.0b / Total Stockholder Equity 80.1b)
RoCE = 21.89% (EBIT 25.8b / Capital Employed (Equity 80.1b + L.T.Debt 37.5b))
RoIC = 13.94% (NOPAT 21.7b / Invested Capital 156b)
WACC = 4.78% (E(589b)/V(644b) * Re(5.08%) + D(55.0b)/V(644b) * Rd(1.89%) * (1-Tc(0.16)))
Discount Rate = 5.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.11 | Cagr: 0.26%
[DCF] Terminal Value 74.85% ; FCFF base≈18.1b ; Y1≈17.5b ; Y5≈17.3b
[DCF] Fair Price = 98.88 (EV 271b - Net Debt 32.9b = Equity 238b / Shares 2.41b; r=8.35% [WACC [floored]]; 5y FCF grow -4.25% → 2.50% )
EPS Correlation: 10.88 | EPS CAGR: 0.31% | SUE: 0.26 | # QB: 0
Revenue Correlation: 79.34 | Revenue CAGR: 3.37% | SUE: 1.59 | # QB: 2
EPS next Quarter (2026-09-30): EPS=3.02 | Chg30d=-0.14% | Revisions=+0% | Analysts=16
EPS current Year (2026-12-31): EPS=11.57 | Chg30d=-0.07% | Revisions=+0% | GrowthEPS=+7.2% | GrowthRev=+7.1%
EPS next Year (2027-12-31): EPS=12.70 | Chg30d=-0.04% | Revisions=+0% | GrowthEPS=+9.8% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +0%