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 Rating6.7/10
Generated at:2026-06-03 17:40:54
Analysis based on 4 financial reports: 2025-03-30, 2024-06-30, 2024-03-31, and 2023-12-31. Current price data as of 2026-06-03 close. Valuation uses TTM and forward-looking metrics. Profitability analysis includes both quarterly anomalies and normalized full-year figures. Financial condition assessment includes liquidity and solvency ratios.
Overview

Johnson & Johnson (JNJ) is a global healthcare giant with stable financial health, strong profitability, and premium valuation justified by its high-quality, defensive business model. The analysis indicates a mixed but generally stable picture with robust profitability metrics and valuation that appears slightly undervalued relative to normalized targets.

Valuation
6/10
Profitability
8/10
Financial health
6/10
Operation Advice
  • Hold the stock for stability, dividend income, and long-term healthcare exposure.
  • Consider buying on a deeper pullback toward the $215 support level.
  • A reasonable near-term trading range is $215 - $245.
  • The stock is suitable for investors seeking defensive blue-chip characteristics.

Valuation

P/E TTM
25.50
P/E LYR
20.43
P/B MRQ
6.61
P/S TTM
--
AI Analysis
  • The current price of $223.24 appears slightly undervalued relative to normalized target ranges. Valuation multiples are premium but justified for this type of company, with forward PE of 20.43 and TTM PE of 25.50. High P/S and P/B ratios are structural and not immediate red flags.
  • The forward-looking (dynamic) PE is 20.43.
  • The trailing twelve months (TTM) PE is 25.50.
  • A PE in the low 20s is reasonable for a high-quality, defensive healthcare stock with moderate growth prospects.
  • The P/B ratio is 6.61, which is elevated but typical for pharmaceutical companies whose value is driven by intellectual property.
  • The P/S ratio (TTM) is 24.55, which is very high but reflects the market's valuation of its exceptional profitability.
  • The valuation multiples are premium, justified by JNJ's strong brand, diversified business, and stable cash flows.
  • They are not indicative of a deeply undervalued situation.
  • Based on 60-day trading data, the stock has traded between a low of $220.37 and a high of $247.20.
  • Considering the current price near the lower end of this recent range, a reasonable near-term trading range is $215 - $245.
  • Using normalized full-year 2023 Diluted EPS of $13.72 and a PE of 21-22 gives a more reasonable target range of $288 - $302.
  • The current price of $223.24 appears slightly undervalued relative to the normalized target range.
Valuation trend

Profitability

ROE TTM
14.70%
Net margin
50.24%
Gross margin
66.40%
Total revenue
21.89B
AI Analysis
  • JNJ demonstrates strong and improving profitability metrics with high margins, though recent quarterly data shows volatility due to non-recurring items. Return metrics are solid, indicating efficient use of capital.
  • The Return on Equity (ROE) of 14.70% and Return on Assets (ROA) of 5.89% (TTM) are solid, indicating efficient use of shareholder capital and company assets.
  • The company maintains high margins, with a gross margin of 66.40% and a net margin of 50.24% based on the latest quarterly data (2025 Q1).
  • The exceptionally high net margin in Q1 2025 (50.24%) appears to be an anomaly likely driven by one-time events.
  • The full-year 2023 net margin of 41.28% is a more sustainable benchmark of strong profitability.
  • Recent quarterly reports show significant volatility in net profit growth, highlighting the impact of non-recurring items.
  • Revenue growth has been steady in the low single digits.
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
  • JNJ's financial health shows a mixed but generally stable picture with sufficient liquidity, moderate leverage, and overall stability. The company is capable of meeting its obligations, though leverage warrants monitoring.
  • The current ratio of 1.26 and quick ratio of 1.03 indicate the company has sufficient short-term assets to cover its short-term liabilities, though the margins are not exceptionally high.
  • The debt-to-asset ratio of 59.67% shows a moderate level of leverage.
  • This leverage level is not uncommon for large, mature corporations in the capital-intensive healthcare sector and suggests a balanced capital structure.
  • The ratios point to a financially stable company capable of meeting its obligations.
  • The leverage warrants monitoring in a rising interest rate environment.
Leverage
2024Q12024Q22024Q32024Q42025Q1
Debt/Asset59.28%60.50%----59.67%
Liquidity
2024Q12024Q22024Q32024Q42025Q1
Current ratio1.171.07----1.26