Stock · JNJ · Healthcare

Johnson & Johnson

United States · Large Cap · listed since 1944 · Revenue 12 mo. $99.3B

Price as of 11/06/2026

6.4

of 10 7 of 11 points High Match To the score

Price: $276.22; 1 Y +38.1%
Market cap: $671.4B
Phase: Payout; core business profitable, at least half of operating cash flow goes to shareholders; Revenue +5.6% a year (3 years)EBIT margin 27.2%Payout 76.6% of operating cash flow

Business and risks according to the 2025 annual report

Summary

Johnson & Johnson is around the middle of the Healthcare sector overall

57.5 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Profitability77.5above the middle
Growth61.8above the middle
Valuation41.3around the middle
Momentum65.6above the middle
Quality40.0around the middle
Balance sheet & risk58.9around the middle

Analysis

What the price requires

The price requires 15.6% FCF growth a year, more than achieved over the last 5 and 10 years.

If free cash flow stays at €17.7B (2025), it supports €196.4B. The remaining €406.1B of the market value assume it grows 15.6% a year for 10 years and not at all afterwards.

Required FCF growth per year

15.6%

Discount rate

Period

no growth afterwards

Market value breakdown€602.5B market value, price as of 11/06/2026

€196.4B without growth

€406.1B priced-in growth

5 yrs achieved 0.4%
10 yrs achieved 2.1%
priced in 15.6%

Valuation against its own history

Price to operating cash flow 25.9×, above its usual range.

Middle half of 20 quarters: 16.5× to 21.0×, median 19.7×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 2 speak against it.

What supports it

with respect to the priced-in expectation

High, stable gross margin median 68.2%, range 4.7 pp (10 years)
Low capital needs capex median 4.6% of revenue (10 years)
Steady FCF margin at least 20.9%, range 4.2 pp (10 years)

What speaks against it

with respect to the priced-in expectation

Expectation above the company's own record priced in 15.6%, achieved at most 2.1%
EBIT margin falling for three quarters −1.7 pp over the last four reports

AI summary of the 2025 annual report

The business of Johnson & Johnson according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 12/28/2025, filed 02/11/2026. Open the report at the SEC

Revenue by segment, fiscal year ended 12/28/2025

Segment	Share	Revenue
Innovative Medicine	64.1%	$60.4B
MedTech	35.9%	$33.8B

From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.

Business model according to the report

The company has two business segments: Innovative Medicine and MedTech.
Quote
The Company is organized into two business segments: Innovative Medicine and MedTech.
The Vision portfolio includes ACUVUE contact lenses and TECNIS intraocular lenses for cataract surgery, plus other products for cataract and refractive procedures.
Quote
The Vision portfolio includes contact lenses marketed under the ACUVUE brand, TECNIS premium intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures.
The Innovative Medicine segment focuses on therapeutic areas such as oncology, with examples including prostate cancer, blood cancers, lung cancer and bladder cancer.
Quote
The Innovative Medicine segment is focused on the following therapeutic areas: Oncology (e.g., prostate cancer, hematologic malignancies, lung cancer and bladder cancer)
Key products in the Innovative Medicine segment include CARVYKTI, a CAR-T-cell therapy for patients with relapsed or refractory multiple myeloma.
Quote
Key products in the Innovative Medicine segment include: CARVYKTI (ciltacabtagene autoleucel), a chimeric antigen receptor (CAR)-T-cell therapy for the treatment of patients with relapsed/refractory multiple myeloma;

Customers according to the report

Sales of Innovative Medicine and MedTech products are significantly affected by reimbursements from third-party payors, such as government healthcare programs, private insurance plans and managed care organizations.
Quote
Sales of the Company’s Innovative Medicine and MedTech products are significantly affected by reimbursements by third-party payors such as government healthcare programs, private insurance plans and managed care organizations.
MedTech products are distributed to wholesalers, hospitals and retailers, and are mainly used by physicians, nurses, hospitals, eye care professionals and clinics.
Quote
These MedTech products are distributed to wholesalers, hospitals, and retailers and are used predominantly in the professional fields by physicians, nurses, hospitals, eye care professionals, and clinics.

Competition according to the report

The company's businesses compete with companies of all sizes on cost-effectiveness, technological innovations, intellectual property rights, product performance, real or perceived product advantages, pricing, availability and reimbursement rates.
Quote
The Company’s businesses compete with companies of all sizes on the basis of cost-effectiveness, technological innovations, intellectual property rights, product performance, real or perceived product advantages, pricing and availability and rate of reimbursement.
Competition in research, from both internal and external sources, around developing and improving new and existing products and processes is particularly important.
Quote
Competition in research, both internally and externally sourced, involving the development and the improvement of new and existing products and processes, is particularly significant.
The company's subsidiaries compete with companies both locally and globally in all of their product lines.
Quote
In all of their product lines, the Company’s subsidiaries compete with companies both locally and globally.

Risks according to the report

For Innovative Medicine, losing patent exclusivity for a product is often followed by a substantial drop in sales, as competitors gain approval for generic, biosimilar and other competing products.
Quote
For the Company’s Innovative Medicine businesses, loss of patent exclusivity for a product often is followed by a substantial reduction in sales as competitors gain regulatory approval for generic, biosimilar and other competing products and enter the market.
The company expects biosimilar versions of STELARA to keep launching worldwide, which will continue to negatively affect its sales of STELARA.
Quote
The Company expects continued launches of biosimilar versions of STELARA globally which will continue to negatively impact the Company’s sales of STELARA.
The company's largest product, DARZALEX together with DARZALEX FASPRO, accounted for approximately 15.0% of total revenues in fiscal 2025.
Quote
Sales of the Company’s largest product, collectively DARZALEX (daratumumab) and DARZALEX FASPRO (daratumumab and hyaluronidase-fihj), accounted for approximately 15.0% of the Company's total revenues for fiscal 2025.
The company is a defendant in numerous lawsuits arising from the use of body powders containing talc, mainly JOHNSON’S Baby Powder.
Quote
For example, the Company is a defendant in numerous lawsuits arising out of the use of body powders containing talc, primarily JOHNSON’S Baby Powder.
The company has faced increasing patent challenges from third parties seeking generic and biosimilar versions of its key pharmaceutical products prior to patent expiry.
Quote
The Company has faced increasing patent challenges from third parties seeking to manufacture and market generic and biosimilar versions of the Company’s key pharmaceutical products prior to expiration of the applicable patents covering those products.

Since the last quarter

Q2 → Q3 2026

Mostly worse than the previous quarter: 4 of 4 changes for the worse.

FCF, 12 mo.$22.6B → $20.6B−9.0%worse
EBIT margin26.8% → 25.7%−1.1 ppworse
FCF margin23.1% → 20.7%−2.4 ppworse
Return on equity24.8% → 19.7%−5.0 ppworse

4 more unchanged: Revenue, 12 mo., Gross margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability77.5above the middleEarns more than the sector: Return on capital (Greenblatt) 103.77%, sector 32.55%.

Metric	Stock	Sector median	Position in sector
Return on equity	32.87%	11.52%	Rank 87
Return on capital (Greenblatt)	103.77%	32.55%	Rank 92
EBIT margin	27.17%	18.31%	Rank 76
FCF margin	20.91%	14.12%	Rank 73
Gross margin	67.88%	60.99%	Rank 59

Growth61.8above the middleGrows faster than the sector: Earnings growth, 3 years per year 17.88%, sector 5.44%.

Metric	Stock	Sector median	Position in sector
Revenue growth, 1 year	6.05%	8.04%	Rank 40
Earnings growth, 3 years per year	17.88%	5.44%	Rank 74
Earnings growth, 5 years per year	14.90%	7.00%	Rank 70
Sustainable growth (ROE × retained earnings)	5.13%	3.66%	Rank 63

Valuation41.3around the middleValued about like the sector.

Metric	Stock	Sector median	Position in sector
Earnings yield	3.99%	2.90%	Rank 68
FCF yield	2.93%	3.63%	Rank 35
EV/saleslower is better	7.42	4.03	Rank 26
EV/EBITlower is better	27.32	21.73	Rank 36

Momentum65.6above the middleShare price doing better than the sector: Distance from 52-week high −0.79%, sector −7.35%.

Metric	Stock	Sector median	Position in sector
Share price, 1 year	38.13%	8.66%	Rank 83
Share price, 6 months	25.29%	24.27%	Rank 53
Share price, 3 months	11.68%	15.42%	Rank 41
Distance from 52-week high	−0.79%	−7.35%	Rank 86

Quality40.0around the middleQuality about like the sector.

Metric	Stock	Sector median	Position in sector
Accruals (Sloan)lower is better	13.64%	0.30%	Rank 7
Change in share countlower is better	0.00%	0.00%	Rank 45
Dividend streak in years	55	10	Rank 100
Price reaction to results, market-adjusted	−5.84%	0.05%	Rank 8

Balance sheet & risk58.9around the middleRisk about like the sector.

Metric	Stock	Sector median	Position in sector
Equity ratio	40.93%	48.40%	Rank 34
Net debt/EBITDAlower is better	0.68	1.11	Rank 58
Debt to equitylower is better	0.59	0.48	Rank 45
Volatility, 1 yearlower is better	20.71%	31.42%	Rank 98

Ten years in figures

Revenue from $71.9B (2016) to $94.2B (2025), 3.0% a year.

Fiscal years, amounts in USD
Year	Revenue, $B	EBIT margin	FCF, $B	Shares	Net debt, $B
2016	71.9	29.1%	15.5	2.79B	8.2
2017	76.5	24.7%	17.8	2.75B	16.8
2018	81.6	26.0%	18.5	2.73B	12.4
2019	82.1	25.6%	19.9	2.68B	10.4
2020	82.6	23.9%	20.2	2.67B	21.3
2021	78.7	26.6%	19.8	2.67B	19.3
2022	80.0	26.3%	17.2	2.66B	26.8
2023	85.2	25.7%	18.2	2.56B	7.5
2024	88.8	24.9%	19.8	2.43B	12.5
2025	94.2	27.2%	19.7	2.43B	28.2

6.4 / 10High MatchStockScorer score7 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Johnson & Johnson mainly meets criteria in the Profitability category. Result from 18 strategies checked.

Watch this stock See strategy overview →

How Johnson & Johnson's score is built

Johnson & Johnson is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

7 of 11 points

Free cash flow yield above the sector mediannot met0 of 2 points
Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
Return on equity above the sector medianmet1 of 1 point
Free cash flow margin above the sector medianmet2 of 2 points
Revenue growth above 15%not met0 of 2 points
3-year earnings growth above 12% p.a.met1 of 1 point
12-month share price more than 20 percentage points ahead of the marketmet1 of 1 point
Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Johnson & Johnson stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

Dividend Quality: 4 FactorsFour factors against the dividend trap: continuity, coverage, yield, growth.
High
Mohanram G-Score: Growth QualityFor growth stocks, the substance check shows what is real investment and what is only an announcement.
High
StockScorer ScoreMeasured against its own sector: quality, valuation, growth and market confirmation.
High
Balanced GARPSteady growth at a fair price, sitting between value and growth.
High
Defensive: Low VolatilityLow swings instead of maximum return, which is what the low-volatility anomaly exploits.
High
Growth Momentum (CAN SLIM principle)Strong earnings growth, confirmed by the price trend. The bet is on strength, not weakness.
Medium

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

Piotroski F-Score (9-Point Check)
Moat Quality
Dividend Aristocrats & Continuity
Altman Z-Score: Stress Test
Earnings Quality: Accrual Check (Sloan)
Magic Formula: Value + Quality
Undervalued Stocks: Multi-Factor Check
High-Growth / Rule of 40
Levermann Strategy (13 Criteria)
Acquirer's Multiple: EV/EBIT Deep Value
PEG Strategy (inspired by Peter Lynch)
Trending Value: Value + Momentum

Open complete overview

Johnson & Johnson key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Johnson & Johnson.

Metric	Stock	Sector
P/E ratio	25.0	30.0
P/B ratio	8.2	4.8
Return on equity (ROE)	32.9%	11.5%
Equity ratio	40.9%	48.4%
Debt-to-equity (D/E)	0.59	0.48
Dividend yield	1.9%	1.3%

Similar stocks in Healthcare

How comparable stocks in the same sector score in the StockScorer model.

Symbol	Company	Rating
JNJ	Johnson & Johnsonthis page
ABBV	AbbVie Inc	Medium5.5
MRK	Merck & Company Inc	Medium5.5
AMGN	Amgen Inc	Medium5.5
GILD	Gilead Sciences Inc	locked
PFE	Pfizer Inc	locked

Frequently asked questions about Johnson & Johnson stock

How does Johnson & Johnson stock (JNJ) score in the StockScorer model?

Johnson & Johnson stock reaches a StockScorer score of 6.4 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.

What is Johnson & Johnson's P/E ratio?

Johnson & Johnson's P/E ratio is 25.0. The Healthcare sector median is 30.0.

What sector is Johnson & Johnson in?

Johnson & Johnson is assigned to the Healthcare sector. Its rank within the sector is 57.5 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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