Johnson & Johnson (JNJ) AI Stock Analysis

• Market Cap: $407.97B
• Dividend Yield: 2.96%
• Average Volume (3M): 8.54M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.21
• Revenue Growth: 4.69%
• EPS Growth: N/A
• Country: US
• Employees: 138,100
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.77
• Shares Outstanding: 2,406,073,200
• 10 Day Avg. Volume: 10,304,733
• 30 Day Avg. Volume: 8,537,843
• PEG Ratio: 1.94
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.29
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $176.35
• Price Target Upside: 4.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 78 Outperform
• Price Target: $187.00 ▲(10.29%Upside)

Johnson & Johnson's overall stock score reflects its strong financial health and robust earnings call performance, highlighting the company's strategic growth in key segments. The technical analysis indicates potential caution due to overbought signals, and valuation is balanced with a reasonable P/E ratio and attractive dividend yield. While there are challenges such as the loss of STELARA exclusivity, the company's diversified portfolio and strategic innovations provide a solid foundation for future growth.

Positive Factors

Earnings

Johnson & Johnson experienced a strong quarter overall with a modest topline beat.

Guidance

The company raised its adjusted EPS guidance by 25 cents at the midpoint to a range of $10.80-$10.90.

Product Launches

Johnson & Johnson expects its sales growth to accelerate in the second half of 2025, driven by new product launches and strong business momentum.

Negative Factors

Margin Accretion

There is uncertainty around margin accretion due to tariff and MFN concerns.

Policy Environment

The policy environment remains dynamic, with management lowering the expected 2025 tariff headwind for MedTech to $200M from $400M.

Tax Implications

Operating leverage was slightly diluted by higher tax implications.

Johnson & Johnson Business Overview & Revenue Model

Company Description

Johnson & Johnson is a global leader in the healthcare industry, with operations spanning pharmaceuticals, medical devices, and consumer health products. Founded in 1886, the company is headquartered in New Brunswick, New Jersey, and has a presence in over 60 countries. Its core products include prescription medicines, surgical equipment, diagnostic tools, and consumer health products such as baby care, skin care, and over-the-counter pharmaceuticals.

How the Company Makes Money

Johnson & Johnson generates revenue primarily through its three business segments: Pharmaceutical, Medical Devices, and Consumer Health. The Pharmaceutical segment is the largest, focusing on areas such as immunology, oncology, neuroscience, and infectious diseases, delivering innovative treatments and therapies. The Medical Devices segment provides a wide range of products used in surgery, orthopedics, cardiovascular care, and diabetes care. The Consumer Health segment offers well-known brands like Neutrogena, Tylenol, and Johnson's Baby. The company also benefits from strategic partnerships, research and development investments, and a strong global distribution network, all contributing to its robust revenue streams.

Johnson & Johnson Financial Statement Overview

Summary

Johnson & Johnson exhibits strong profitability with high margins and a stable balance sheet, supported by effective cash flow management. However, slight declines in revenue growth and free cash flow indicate potential areas for improvement.

Income Statement

Johnson & Johnson's income statement over the TTM (Trailing-Twelve-Months) shows robust financial health with a gross profit margin of 74.4% and a net profit margin of 26.6%, indicating strong profitability. The EBIT margin stands at 26.8%, and the EBITDA margin is 30.9%, both reflecting efficient operational management. However, the revenue growth rate from the previous year shows a slight decline of 7.7%, which is a potential concern for sustained growth.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.18, suggesting low leverage and lower financial risk. The return on equity (ROE) is a healthy 27.9%, indicating effective use of equity. The equity ratio of 40.3% shows a strong capital structure. Despite these strengths, the decrease in stockholders' equity over the periods may need attention.

Cash Flow

The cash flow statement presents a stable cash generation with a free cash flow of $18.59 billion in the TTM and an operating cash flow to net income ratio of 1.14, indicating strong cash flow management. However, the drop in free cash flow growth by 6.3% compared to the previous year suggests potential challenges in maintaining cash flow levels.

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

Johnson & Johnson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 169.56 is above the 20-day moving average (MA) of 159.05, above the 50-day MA of 155.22, and above the 200-day MA of 153.55, indicating a bullish trend. The MACD of 3.72 indicates Negative momentum. The RSI at 75.62 is Negative, neither overbought nor oversold. The STOCH value of 98.70 is Negative, 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
MRK	80 Outperform	$210.88B	12.23	39.31%	3.80%	4.40%	654.93%
JNJ	78 Outperform	$407.97B	18.09	29.45%	2.96%	4.69%	―
AZN	78 Outperform	$228.31B	29.12	19.81%	2.09%	15.48%	22.70%
AMGN	73 Outperform	$165.91B	28.23	105.67%	3.00%	15.59%	56.99%
PFE	69 Neutral	$144.18B	18.38	8.62%	6.75%	13.38%	―
ABBV	68 Neutral	$336.59B	81.25	88.15%	3.39%	5.45%	-30.21%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%

Johnson & Johnson Corporate Events

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.

The most recent analyst rating on (JNJ) stock is a Hold with a $155.00 price target. To see the full list of analyst forecasts on Johnson & Johnson stock, see the JNJ Stock Forecast page.

Johnson & Johnson Shareholders Approve 2025 Director Nominees

D. Adamczyk announced his intention to retire from Johnson & Johnson‘s Board of Directors effective May 31, 2025, to join Goldman Sachs as a Partner, citing personal reasons unrelated to any disagreements with the company. At the 2025 Annual Meeting of Shareholders held on April 24, 2025, all 11 Director nominees were elected, executive compensation policies were approved, and PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025. However, proposals on shareholder voting for excessive golden parachutes and a human rights impact assessment were not approved.