Skip to content

JNJ

S&P 500
Neutral · 56/100

Johnson & Johnson

Health Care
Pharmaceuticals

$239.08

3.4%

Updated Today 5:06 AM ET

Price — Past Year

▲ Up 51.5% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$575.52B

P/E

27.37x

Forward P/E (est.)

28.48x

ROE

26.3%

Revenue Growth

7.9%

EPS Growth

-3.9%

Profit Margin

21.8%

FCF Yield

3.2%

Debt / Equity

0.59x

ROIC

14.0%

Interest Coverage

78.22x

Current Ratio

1.03x

Dividend Yield

2.3%

Implied Growth (rev. DCF)

5.4%

Rating Score

56/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what JNJ's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. JNJ trades near $239.08, above its 50-day average ($230.18) and 200-day average ($216.30). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. JNJ's is $5.31 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month JNJ found buyers near $220.84 (support) and sellers near $241.60 (resistance); its 52-week range is $149.74–$251.71. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.4× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Johnson & Johnson (JNJ) is a mega-cap company in the Pharmaceuticals industry, part of the Health Care sector of the S&P 500, with a market value around $575.52B.

In its latest reported year it generated about $94.19B in revenue and $26.80B in net profit.

Our model rates JNJ Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

3.3%

Revenue moved from $82.58B in 2021 to $94.19B in 2025, a 3.3% compound annual growth rate. The most recent year grew a steady 7.9% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

67.9%

Operating Margin

25.9%

Net Margin

28.5%

ROE

26.3%

Johnson & Johnson keeps about 21.8% of each sales dollar as net profit, with a 67.9% gross margin and 25.9% operating margin. Return on equity is 26.3% and return on invested capital about 14.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

$41.44B

Net Debt

$19.75B

Net Debt / EBITDA

Debt / Equity

0.59x

Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 78.2x, with a current ratio of 1.0x. That is a moderate, manageable debt load for most businesses. It carries roughly $41.44B of total debt against $21.69B of cash.

Cash Flow Analysis
Research

Operating CF

$24.53B

Free Cash Flow

$19.70B

FCF Margin

20.9%

In the latest year Johnson & Johnson produced about $24.53B of operating cash flow and $19.70B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.2% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

27.37x

P/S

6.01x

P/B

6.23x

EV / EBITDA

20.14x

JNJ trades at 27.4x trailing earnings (about 28.5x on estimated forward earnings), 6.0x sales, and 6.2x book value. Reverse-engineering today's price implies the market expects roughly 5.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
27.4xExpensive
Forward P/E
28.5xExpensive
P/S ratio
6.0xExpensive
Revenue growth
7.9%Strong
EPS growth
-3.9%Weak
Gross margin
67.9%Strong
Net margin
21.8%Strong
ROE
26.3%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How JNJ stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.

In the Health Care sector (59 S&P 500 companies), JNJ ranks #24 of 59 by our overall rating. It trades at roughly in line versus the sector on earnings (27.4x P/E vs. 25.5x median) with a higher return on equity (26.3% vs. 14.9%) and similar revenue growth (7.9% vs. 7.9%).

P/E vs sector

27.4x

median 25.5x

ROE vs sector

26.3%

median 14.9%

Growth vs sector

7.9%

median 7.9%

Sector rank

#24

of 59 by rating

CompanyP/ERev Gr.Rating
JNJThis stock27.4x7.9%Neutral· 56
LLY41.5x47.4%Favorable· 69
MRK33x2.9%Weak· 40
PFE18.8x1.4%Neutral· 48
BMY19x1.8%Favorable· 60
ZTS12.3x2.4%Favorable· 63
VTRS1.6%Weak· 29
ABBV113.2x9.5%Weak· 31
Health Care median25.5x7.9%52/100

Valuation vs. quality map

sector medianLLYMRKPFEBMYZTSABBVJNJP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 59 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$257.57$434.65

vs. $239.08 today · expected CAGR 2%13%

Metric20262027202820292030
Revenue$101.73B$109.87B$118.66B$128.15B$138.40B
Net income$28.48B$30.76B$33.22B$35.88B$38.75B
EPS$11.83$12.78$13.80$14.91$16.10
Share price (low)$189.32$204.47$220.83$238.49$257.57
Share price (high)$319.48$345.04$372.65$402.46$434.65
CAGR (low–high)-21% / 34%-8% / 20%-3% / 16%-0% / 14%2% / 13%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for JNJ:

  • High net margins (21.8%) point to pricing power or efficiency.
  • Strong return on equity (26.3%) shows capital is put to work well.
  • Pays a 2.3% dividend on top of any price gains.
Bear Case

The case against JNJ:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Johnson & Johnson is a mega-cap health care business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 27.4x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

JNJ — frequently asked questions

Is JNJ a good stock to buy?

We don't give buy or sell advice. Our model rates Johnson & Johnson Neutral (56/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is JNJ's rating on The Stocks School?

Johnson & Johnson currently scores 56/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does JNJ's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Johnson & Johnson's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for JNJ calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this JNJ analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell JNJ. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.