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:2026-06-11 17:41:40
Analysis based on 4 financial reports from periods: 2025-03-30, 2024-06-30, 2024-03-31, and 2023-12-31. Stock price data as of 2026-06-11 close. Data includes company basic information, financial condition assessment, profitability metrics, and valuation multiples. Note that recent profitability figures may include non-recurring items from business divestitures.
Overview

Johnson & Johnson is a global healthcare conglomerate operating in pharmaceuticals and medical devices, exhibiting characteristics of a high-quality, defensive blue-chip stock with strong brand equity, consistent profitability, and a resilient business model. The company's financial health shows a mixed but generally stable picture with sufficient liquidity, moderate leverage, and strong underlying operational profitability.

Valuation
5/10
Profitability
7/10
Financial health
6/10
Operation Advice
  • Maintain existing positions for capital preservation and steady returns.
  • The stock is fairly valued at current levels with a 12-month fundamental target price of $245.
  • Investors seeking growth may find better opportunities elsewhere, while those prioritizing stability in a healthcare portfolio could hold.

Valuation

P/E TTM
27.29
P/E LYR
20.43
P/B MRQ
7.07
P/S TTM
--
AI Analysis
  • The stock appears fairly valued with a current price of $238.33 falling within the middle of the calculated fair value range of $230-$250. Forward P/E of 20.43 is reasonable for a large-cap healthcare company, while elevated TTM P/E and P/B ratios reflect the company's intangible assets and post-spin-off segment mix.
  • Current price is $238.33 as of 2026-06-11 close
  • Forward-looking P/E is 20.43 while TTM P/E is 27.29, with the forward P/E more aligned with historical averages for large-cap healthcare companies
  • Price-to-Book ratio of 7.07 is high, indicating significant value placed on intangible assets like brands and patents
  • TTM Price-to-Sales ratio of 26.21 appears very high but must be interpreted cautiously post-spin-off
  • Using forward P/E of 20.43 as baseline with normalized earnings growth, fair value range is estimated at $230-$250
  • 12-month fundamental target price is $245
  • Current price falls within the middle of the fair value range, suggesting the stock is fairly valued
Valuation trend

Profitability

ROE TTM
14.70%
Net margin
50.24%
Gross margin
66.40%
Total revenue
21.89B
AI Analysis
  • Profitability metrics show strong underlying operational performance with consistently robust gross margins and solid return metrics, though recent extraordinary net profit growth figures are likely driven by non-recurring items.
  • TTM Return on Equity of 14.70% and Return on Assets of 5.89% reflect efficient use of shareholder capital and assets
  • Gross margins have been consistently robust, ranging from 66.4% to 69.55% in the last five reported periods
  • Recent year-over-year net profit growth figures are extraordinarily high (e.g., 237.91% in Q1 2025)
  • High net profit growth is likely driven by non-recurring items such as gains from divestitures
  • More normalized growth rate can be inferred from low-to-mid single-digit revenue growth (2-6% range)
  • Gross margins underscore the company's pricing power and operational efficiency in its core businesses
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 shows generally stable health with sufficient liquidity, moderate leverage typical for the industry, and strong cash flows, though extremely high net margins in recent quarters require careful interpretation due to potential one-time events.
  • Current ratio of 1.26 and quick ratio of 1.03 indicate sufficient short-term assets to cover liabilities
  • Debt-to-asset ratio of 59.67% signifies a moderate level of leverage, common for mature healthcare corporations
  • Extremely high net margins reported in recent quarters (50.24% in Q1 2025, 41.28% in FY 2023) are notable
  • High net margins may be significantly influenced by one-time events like gains from divestitures
  • Underlying operational profitability, indicated by gross margins consistently in the high 60% range, remains strong
  • Moderate leverage appears manageable given the company's stable cash flows
Leverage
2024Q12024Q22024Q32024Q42025Q1
Debt/Asset59.28%60.50%----59.67%
Liquidity
2024Q12024Q22024Q32024Q42025Q1
Current ratio1.171.07----1.26