Johnson & Johnson (JNJ) AI Stock Analysis

• Market Cap: $460.40B
• Dividend Yield: 2.66%
• Average Volume (3M): 8.67M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.22
• Revenue Growth: 5.08%
• EPS Growth: N/A
• Country: US
• Employees: 138,100
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.80
• Shares Outstanding: 2,408,338,900
• 10 Day Avg. Volume: 8,847,658
• 30 Day Avg. Volume: 8,665,071
• PEG Ratio: -0.42
• Price to Book (P/B): 4.83
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 17.39
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 4.42
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 11.24
• 1Y Price Target: $206.47
• Price Target Upside: 8.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $217.00 ▲(13.70% Upside)

Johnson & Johnson's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis indicates potential short-term overbought conditions, while the valuation suggests the stock is fairly priced. Overall, the company is well-positioned for continued success, with robust growth prospects in its key segments.

Positive Factors

Revenue Growth

Consistent sales growth across key segments indicates strong market demand and effective business strategies, supporting long-term revenue expansion.

Product Innovation

Successful new product launches in high-need areas enhance J&J's competitive edge and potential for sustained market leadership.

Strategic Focus

The strategic separation allows J&J to concentrate resources on higher-growth, higher-margin segments, potentially improving overall profitability.

Negative Factors

Loss of Exclusivity

Loss of exclusivity for key drugs like STELARA poses a risk to revenue streams and necessitates innovation to offset declines.

Increased Tax Rate

Higher tax rates reduce net earnings, impacting cash flow and potentially limiting funds available for reinvestment and shareholder returns.

Margin Pressure

Declining margins in key segments like MedTech can affect overall profitability, necessitating cost management and efficiency improvements.

Johnson & Johnson Business Overview & Revenue Model

Company Description

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. It also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company's Pharmaceutical segment offers products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS and COVID-19 infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. The company was founded in 1886 and is based in New Brunswick, New Jersey.

How the Company Makes Money

Johnson & Johnson generates revenue through multiple streams across its three business segments. The Pharmaceutical division is the largest revenue contributor, driven by sales of prescription drugs, particularly in areas such as immunology and oncology, where the company has key blockbuster drugs. The Medical Devices segment earns revenue through the sale of surgical instruments, orthopedic implants, and cardiovascular devices, often bolstered by partnerships with healthcare providers and institutions. The Consumer Health segment offers a variety of well-known products, which generate consistent sales in both retail and online markets. Additionally, JNJ benefits from strategic collaborations and alliances in research and development, which can lead to new product innovations and expanded market access, further enhancing its revenue potential.

Johnson & Johnson Financial Statement Overview

Summary

Johnson & Johnson demonstrates strong financial health with robust profitability and efficient operations. The income statement shows consistent growth and high margins, while the balance sheet reflects financial stability with a low debt-to-equity ratio. Cash flow remains strong, supporting investments and shareholder returns.

Income Statement

Johnson & Johnson demonstrates strong financial performance with a notable gross profit margin of 67.9% and an impressive net profit margin of 25.0% in the TTM. Revenue growth is steady, with a 2.0% increase in the TTM compared to the previous annual period. EBIT and EBITDA margins remain robust at 24.4% and 36.8%, respectively, indicating efficient operations and profitability.

Balance Sheet

The balance sheet highlights a solid equity base with a debt-to-equity ratio of 0.15, reflecting prudent financial management. The company maintains a strong equity ratio of 40.6%, showcasing financial stability. Return on equity stands at 28.9%, indicating efficient use of shareholder capital. The balance sheet is well-positioned, but there is room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals robust operating cash flow of $23 billion, with a healthy free cash flow of $16.77 billion in the TTM. The operating cash flow to net income ratio is 1.02, showing solid cash generation relative to earnings. While free cash flow has declined slightly compared to previous periods, the cash flow metrics remain strong, supporting ongoing investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.63B	88.82B	85.16B	79.99B	78.74B	82.58B
Gross Profit	61.55B	61.35B	58.61B	55.39B	55.34B	54.16B
EBITDA	35.65B	24.78B	23.32B	26.61B	26.75B	23.93B
Net Income	22.66B	14.07B	35.15B	17.94B	20.88B	14.71B
Balance Sheet
Total Assets	193.39B	180.10B	167.56B	187.38B	182.02B	174.89B
Cash, Cash Equivalents and Short-Term Investments	18.88B	24.52B	22.93B	22.28B	31.61B	25.18B
Total Debt	50.76B	36.63B	29.33B	39.64B	33.75B	35.27B
Total Liabilities	114.92B	108.61B	98.78B	110.57B	108.00B	111.62B
Stockholders Equity	78.47B	71.49B	68.77B	76.80B	74.02B	63.28B
Cash Flow
Free Cash Flow	16.40B	19.84B	18.25B	17.18B	19.76B	20.19B
Operating Cash Flow	23.03B	24.27B	22.79B	21.19B	23.41B	23.54B
Investing Cash Flow	-23.01B	-18.60B	878.00M	-12.37B	-8.68B	-20.82B
Financing Cash Flow	-6.46B	-3.13B	-15.82B	-8.87B	-14.05B	-6.12B

Johnson & Johnson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JNJ, the sentiment is Positive. The current price of 190.85 is above the 20-day moving average (MA) of 184.22, above the 50-day MA of 179.23, and above the 200-day MA of 160.19, indicating a bullish trend. The MACD of 4.04 indicates Negative momentum. The RSI at 76.97 is Negative, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JNJ.

Johnson & Johnson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	78 Outperform	$248.43B	18.57	32.82%	3.07%	12.38%	-12.67%
JNJ	77 Outperform	$460.40B	18.45	30.21%	2.66%	5.08%	―
AZN	77 Outperform	$263.16B	31.48	19.76%	1.84%	15.08%	29.15%
MRK	76 Outperform	$214.06B	13.21	35.44%	3.85%	2.00%	20.01%
SNY	76 Outperform	$119.92B	12.17	8.39%	4.52%	-9.32%	120.62%
ABBV	68 Neutral	$406.84B	109.60	112.90%	2.89%	6.05%	-29.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Johnson & Johnson Corporate Events

Johnson & Johnson Elects John Morikis to Board

On September 8, 2025, Johnson & Johnson announced the election of John Morikis, former Executive Chairman, President, and CEO of The Sherwin-Williams Company, to its Board of Directors. Morikis, recognized for his leadership in global markets and supply chains, will contribute to Johnson & Johnson’s long-term strategy of healthcare innovation and shareholder value creation.

Johnson & Johnson Elects Daniel Pinto to Board

On June 10, 2025, Johnson & Johnson announced the election of Daniel Pinto to its Board of Directors, effective July 1, 2025. Pinto, who is the President of JPMorganChase, will also serve on the Audit and Compensation & Benefits Committees. His appointment is significant as JPMorganChase has been a major banking service provider to Johnson & Johnson, with the company paying approximately $39.2 million for various services in fiscal year 2024.