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 Rating6/10
Generated at:2026-04-17 17:42:43
Analysis based on 4 financial reports: 2025-03-30, 2024-06-30, 2024-03-31, and 2023-12-31. Data includes quarterly financial metrics, valuation multiples, and trading data up to 2026-04-17. Analysis considers both trailing twelve months (TTM) and most recent quarterly data. Note: Some profitability metrics in latest quarter may be influenced by one-time events requiring confirmation in subsequent reports.
Overview

Johnson & Johnson is a global healthcare giant with stable financial health, strong profitability, and reasonable valuation. The company operates in Innovative Medicine and MedTech segments, demonstrating resilience with non-cyclical demand. While financially sound and profitable, modest growth, high leverage, and anomalous profit data in the latest quarter warrant a Hold recommendation rather than Buy.

Valuation
6/10
Profitability
7/10
Financial health
5/10
Operation Advice
  • Current investors should maintain positions to benefit from stability and dividends.
  • New investors may wait for a more attractive entry point below $234.18 or clearer evidence of sustained earnings growth.
  • Consider buying on a more significant pullback or with confirmation of normalized earnings trajectory.
  • Monitor debt levels in rising interest rate environments.

Valuation

P/E TTM
26.81
P/E LYR
20.43
P/B MRQ
6.92
P/S TTM
--
AI Analysis
  • Valuation analysis suggests JNJ is currently undervalued relative to its fair value range of $240-$250. While P/E at 26.85 is reasonable for a stable blue-chip, P/B at 6.93 and P/S at 25.76 are elevated but typical for pharmaceutical companies with intangible assets. Current price of $234.18 sits near the lower end of recent trading range.
  • Current price is $234.18 as of 2026-04-17 close
  • Dynamic P/E is 20.43 while P/E (TTM) is higher at 26.85, suggesting analysts expect earnings growth
  • P/B ratio of 6.93 is high but typical for pharmaceutical companies with significant intangible assets not fully reflected on balance sheet
  • P/S (TTM) of 25.76 is very elevated, reflecting the company's high-profit margins
  • Over last 60 days, JNJ traded between low of $232.04 and high of $251.71
  • Current price of $234.18 is near the lower end of recent trading range
  • Reasonable fair value range for JNJ is approximately $240 - $250
  • Current price sits below fair value range, suggesting stock is undervalued relative to recent trading history and fundamental profile
  • P/E of 26.85 is justifiable given stable business and strong ROE
Valuation trend

Profitability

ROE TTM
14.70%
Net margin
50.24%
Gross margin
66.40%
Total revenue
21.89B
AI Analysis
  • Johnson & Johnson demonstrates strong and improving profitability with exceptionally high margins in latest quarter, though some metrics may be influenced by one-time events. The company shows solid returns on equity and assets, with modest but positive revenue growth typical for its scale.
  • Most recent quarterly data shows exceptionally high gross margin of 66.40% and net margin of 50.24%
  • Net margin of 50.24% and 237.91% year-over-year net profit growth are likely anomalous, potentially influenced by one-time events like spin-offs, asset sales, or legal settlements
  • Prior quarter showed more normalized but still robust net margin of 18.12%
  • TTM Return on Equity of 14.70% and Return on Assets of 5.89% are solid, indicating efficient use of shareholder equity and company assets
  • Revenue growth has been positive but modest in low single digits across recent quarters
  • Q1 2025 revenue growth was 2.39%, typical for a company of its scale
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
  • Financial condition appears stable with moderate leverage. The company has sufficient short-term liquidity but carries significant debt financing. Balance sheet is characteristic of an established industry leader with manageable liquidity and likely sustainable capital structure.
  • Current ratio of 1.26 and quick ratio of 1.03 indicate sufficient short-term assets to cover short-term liabilities, though margin is not exceptionally wide
  • Debt-to-asset ratio of 59.67% shows significant portion of company's assets are financed by debt
  • Leverage is common for large, mature corporations in capital-intensive industries like pharmaceuticals
  • Capital structure requires consistent cash flow generation to service debt
  • Balance sheet is characteristic of an established industry leader
  • Financial health appears stable but carries moderate level of leverage
Leverage
2024Q12024Q22024Q32024Q42025Q1
Debt/Asset59.28%60.50%----59.67%
Liquidity
2024Q12024Q22024Q32024Q42025Q1
Current ratio1.171.07----1.26