Johnson & Johnson (JNJ) AI Stock Analysis

• Market Cap: $368.66B
• Dividend Yield: 3.28%
• Average Volume (3M): 7.79M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.21
• Revenue Growth: -0.37%
• EPS Growth: 29.21%
• Country: US
• Employees: 138,100
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.77
• Shares Outstanding: 2,406,073,200
• 10 Day Avg. Volume: 7,391,686
• 30 Day Avg. Volume: 7,791,029
• PEG Ratio: 0.48
• Price to Book (P/B): 4.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $170.53
• Price Target Upside: 10.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: $175.00 ▲(13.89%Upside)

Johnson & Johnson's overall stock score reflects its strong financial performance and earnings call highlights, which are the most significant factors. The company enjoys high profitability and effective cash flow management, with positive growth projections from strategic investments. Technical indicators are neutral, with no strong trend. Valuation is reasonable, supported by a healthy dividend yield. However, the impact of a recent bankruptcy plan rejection and challenges in some product lines pose risks.

Positive Factors

Oncology Advancements

Johnson & Johnson presented new data from its oncology portfolio, showcasing promising results in multiple myeloma treatments at a major cancer conference.

Product Momentum

Tremfya's rapid growth in the ulcerative colitis market is highlighted by strong commercial access and support, with potential to become a $10 billion+ product.

Strategic Acquisitions

Johnson & Johnson's acquisition of Intra-Cellular Therapies for USD 14.6 billion provides access to Caplyta and expands its portfolio in treating mental health disorders and neurological diseases.

Negative Factors

Biosimilar Competition

Amgen’s biosimilar Wezlana received FDA approval for interchangeability with Stelara, allowing pharmacists to substitute it freely, which may impact Stelara's sales.

Conflict of Interest

Investors should consider potential conflicts of interest that might affect the objectivity of certain analyst reports.

Price Pressure

Stelara is experiencing price pressure due to patent expiry and Medicare price negotiations, posing challenges to its market position.

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 demonstrates solid financial performance with strong profitability margins and a stable balance sheet. The company exhibits low financial risk due to low leverage. However, slight declines in revenue growth and free cash flow highlight the need for strategic adjustments to sustain growth and cash generation.

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
TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
89.33B	88.82B	85.16B	79.99B	78.74B	82.58B
	Gross Profit
61.01B	61.35B	58.61B	55.39B	55.34B	54.16B
	EBIT
22.07B	22.15B	23.41B	21.01B	20.94B	19.73B
	EBITDA
34.70B	24.78B	23.32B	26.61B	26.75B	23.93B
	Net Income Common Stockholders
21.81B	14.07B	35.15B	17.94B	20.88B	14.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.78B	24.52B	22.93B	22.28B	31.61B	25.18B
	Total Assets
193.67B	180.10B	167.56B	187.38B	182.02B	174.89B
	Total Debt
52.25B	36.63B	29.33B	39.64B	33.75B	35.27B
	Net Debt
13.78B	12.53B	7.47B	26.75B	19.26B	21.28B
	Total Liabilities
115.56B	108.61B	98.78B	110.57B	108.00B	111.62B
	Stockholders Equity
78.11B	71.49B	68.77B	76.80B	74.02B	63.28B
Cash Flow		Free Cash Flow
18.57B	19.84B	18.25B	17.18B	19.76B	20.19B
	Operating Cash Flow
24.78B	24.27B	22.79B	21.19B	23.41B	23.54B
	Investing Cash Flow
-18.43B	-18.60B	878.00M	-12.37B	-8.68B	-20.82B
	Financing Cash Flow
6.74B	-3.13B	-15.82B	-8.87B	-14.05B	-6.12B

Johnson & Johnson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 153.66 is above the 20-day moving average (MA) of 152.02, above the 50-day MA of 153.45, and below the 200-day MA of 153.99, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 54.50 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
JNJ	78 Outperform	$368.66B	17.08	29.45%	3.28%	-0.37%	29.21%
AZN	77 Outperform	$223.47B	28.65	19.81%	2.08%	15.48%	22.70%
MRK	76 Outperform	$193.70B	11.23	39.31%	4.04%	4.40%	654.93%
AMGN	75 Outperform	$155.70B	26.43	105.67%	3.23%	15.59%	56.99%
PFE	72 Outperform	$132.75B	16.92	8.62%	7.27%	13.38%	―
ABBV	67 Neutral	$330.92B	79.94	88.15%	3.40%	5.45%	-30.21%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%

Johnson & Johnson Corporate Events

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.

Johnson & Johnson Faces Bankruptcy Plan Rejection

On March 31, 2025, Johnson & Johnson announced that the U.S. Bankruptcy Court for the Southern District of Texas denied the request by its subsidiary, Red River Talc LLC, to confirm its proposed prepackaged bankruptcy plan. As a result, the company will reverse approximately $7 billion from amounts previously reserved for the bankruptcy resolution, impacting its financial planning and potentially affecting stakeholders’ expectations.