Johnson & Johnson(JNJ) - Stock detail

Johnson & Johnson

US
JNJ
Johnson & Johnson(Listing date: 09/25/1944)

Johnson & Johnson was incorporated in New Jersey in 1887. Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacturing and sale of various products in the healthcare field. Johnson & Johnson is a holding company, with its operating companies located in nearly all countries around the world. The company's primary focus is on products related to human health and well-being. The company is divided into two business segments: Innovative Medicine and MedTech.

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-03-04 16:37:05
Analysis based on 4 financial reports from periods: 2025-03-30, 2024-06-30, 2024-03-31, and 2023-12-31. Data includes TTM metrics and quarterly comparisons. Stock price data as of 2026-03-05 at $245.30.
Overview

Johnson & Johnson demonstrates strong fundamental characteristics with consistent revenue growth, robust margins, and reasonable valuation, though the stock has appreciated significantly (~20%) over the past 60 days, reducing near-term upside potential. The company maintains pharmaceutical-industry-typical high margins while demonstrating consistent revenue growth, with moderate financial health and some concerning leverage metrics.

Valuation
4/10
Profitability
7/10
Financial health
5/10
Operation Advice
  • For existing positions: Maintain with trailing stop-loss at $235 (4.2% downside).
  • For new positions: Wait for pullback to $235-240 range for better risk/reward entry.
  • Price targets: $250-260 (4-6% upside) with 3-6 month horizon.

Valuation

P/E TTM
22.18
P/E LYR
20.43
P/B MRQ
7.29
P/S TTM
--
AI Analysis
  • Current valuation appears fairly valued to slightly overvalued relative to historical multiples, with moderate P/E ratios and elevated P/B due to intangible assets. Forward P/E of 20.43 suggests moderate premium for quality with 4-6% upside potential.
  • P/E (TTM): 22.18 - Moderate relative to healthcare sector average (~20-25)
  • Forward P/E: 20.43 - Slightly more attractive than TTM multiple
  • P/B: 7.29 - Elevated due to significant intangible assets common in pharmaceuticals
  • P/S: 27.02 - High relative to sector, reflecting premium margins
  • Recent 60-day trading shows upward momentum from ~$200-210 range to current ~$245 level, representing approximately 20% appreciation
  • Current valuation appears fairly valued to slightly overvalued relative to historical multiples
  • Fundamental-based target price: $250-260 (4-6% upside) based on earnings growth projection
Valuation trend

Profitability

ROE TTM
14.70%
Net margin
50.24%
Gross margin
66.40%
Total revenue
21.89B
AI Analysis
  • JNJ demonstrates robust profitability with exceptional recent performance including 66.40% gross margin and 50.24% net margin in Q1 2025, though this quarter appears anomalous due to one-time benefits. The company maintains consistent revenue growth and efficient capital utilization.
  • Gross margin: 66.40% (Q1 2025) reflects strong pricing power and cost control
  • Net margin: 50.24% (Q1 2025) shows exceptional efficiency, though this quarter appears anomalous due to one-time benefits
  • ROE: 14.70% (TTM) indicates efficient use of shareholder capital
  • ROA: 5.89% (TTM) demonstrates solid asset utilization
  • Consistent revenue growth across quarters (2.34%-6.46% YoY)
  • Q1 2025 showed extraordinary net income growth (+237.91% YoY), likely driven by non-recurring items
  • More normalized quarterly net income ranges between $3.25B-$11.00B
  • The company maintains pharmaceutical-industry-typical high margins while demonstrating consistent revenue growth
Profitability
2024Q12024Q22024Q32024Q42025Q1
ROE TTM4.69%11.32%----14.70%
Earnings
2024Q12024Q22024Q32024Q42025Q1
Total revenue21.38B43.83B----21.89B

Financial health

Debt/Asset
59.67%
Current ratio
1.26
Quick ratio
1.03
Cash ratio
1.03
AI Analysis
  • Johnson & Johnson exhibits moderate financial health with adequate liquidity but significant leverage metrics. Current ratio of 1.26 and quick ratio of 1.03 indicate adequate short-term liquidity, while debt-to-equity ratio of 59.67% suggests significant leverage common for large pharmaceutical companies.
  • Current ratio of 1.26 and quick ratio of 1.03 indicate adequate short-term liquidity, though not exceptionally strong for the healthcare sector
  • Debt-to-equity ratio of 59.67% suggests significant leverage, which is common for large pharmaceutical companies but requires monitoring
  • Consistent revenue growth across recent quarters (2.34%-6.46% YoY) demonstrates business resilience
  • Strong profitability metrics suggest healthy cash generation capabilities
  • The financial structure appears appropriate for a mature healthcare company, though the elevated debt level warrants attention in rising interest rate environments
Leverage
2024Q12024Q22024Q32024Q42025Q1
Debt/Asset59.28%60.50%----59.67%
Liquidity
2024Q12024Q22024Q32024Q42025Q1
Current ratio1.171.07----1.26