JNJ
JOHNSON & JOHNSON
Healthcare • CIK: 0000200406
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Market Cap
$499.84B
P/E (TTM)
18.7x
Rev Growth (TTM)
+6.0%
Net Margin (TTM)
28.5%
FCF Yield (TTM)
3.9%
FCF Margin (TTM)
20.9%
Filing Intelligence
5.0/10
10-K filed Feb 11, 2026 • FY 2025
Executive Summary
The company demonstrated accelerated revenue growth in 2025, driven by strong performance in both its Innovative Medicine and MedTech segments, bolstered by key product launches and strategic...
Key Concerns
- ●While overall performance is strong, headwinds exist, including significant biosimilar competition impacting key drugs like STELARA and...
- ●Significant ongoing litigation, particularly related to talc-based powders, poses a material risk of substantial financial settlements or...
- ●The company faces numerous lawsuits regarding product liability, patent disputes, and alleged violations of trade and consumer protection...
Key Strengths
- ●The company demonstrated accelerated revenue growth in 2025, driven by strong performance in both its Innovative Medicine and MedTech...
- ●Profitability significantly improved, with earnings before tax nearly doubling as a percentage of sales, largely due to favorable one-time...
- ●While overall performance is strong, headwinds exist, including significant biosimilar competition impacting key drugs like STELARA and...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$19.7B
Q4 '25
$5.5B-32%
Q3 '25
$8.0B+183%
FCF Margin
TTM20.9%
Q4 '2522.3%-33%
Sector: 0.0%Top 10%
OCF Margin26.0%
OCF/NI0.92x
CapEx Coverage5.1x
FCF Yield3.9%
FCF Growth (2Y)+5%
Cash Conversion Cycle
107 days
DSO: 65+DIO: 161−DPO: 120
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM3.7%
Div Yield2.5%
+Buyback (TTM)1.2%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)2.5%
FCF Payout Ratio62.8%
Free Cash Flow (TTM)$19.7B
Stock Repurchases (TTM)$6.0B
Capital Return / FCF93.1%
Est. Dividends Paid (TTM)$12.4B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
17.7%
Stable
+0.0% YoY-2.1%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
22.4%
Asset Turnover
0.49x
8Q: 0.50x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
4.33x
8Q:4.36x
-12.1%
Invested Cap Turn
0.79x
8Q:0.82x
-9.1%
CapEx Intensity
4.1%
8Q:3.8%
CapEx/Depreciation
0.64x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $94.2B | $24.6B↑2.4% | $24.0B↑1.1% | $23.7B↑8.5% | $21.9B↓2.8% | $22.5B↑0.2% | $22.5B↑0.1% | $22.4B↑5.0% | $21.4B |
Operating Income | $25.6B | $5.6B↓21.2% | $7.1B↑5.8% | $6.7B↑8.2% | $6.2B↑70.3% | $3.6B↓28.3% | $5.1B↓21.4% | $6.5B↑6.3% | $6.1B |
Net Income | $26.8B | $5.1B↓0.7% | $5.2B↓7.0% | $5.5B↓49.7% | $11.0B↑220.6% | $3.4B↑27.4% | $2.7B↓42.5% | $4.7B↑44.0% | $3.3B |
Operating Cash Flow | $24.5B | $7.3B↓20.3% | $9.2B↑136.4% | $3.9B↓7.1% | $4.2B↓40.2% | $7.0B↓12.6% | $8.0B↑41.9% | $5.6B↑54.0% | $3.7B |
Free Cash Flow | $19.7B | $5.5B↓31.7% | $8.0B↑182.6% | $2.8B↓16.1% | $3.4B↓37.1% | $5.4B↓22.9% | $7.0B↑49.5% | $4.7B↑63.4% | $2.9B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
18.7x
Volatile
8Q: 91.0x-3245%
Valuation Lenses
Earnings
18.7x
vs – sector
Cash Flow
26.6x
EV/FCF vs –
Growth-Adj
0.2xPEG
Undervalued for growth
Quality-Adj
1.1P/E per %ROIC
ROIC: 17.7%
Shareholder Returns
Dividend
2.5%
Buyback
1.2%
Total Yield
3.7%
Market Cap$499.84B
EV$522.99B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
93/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
34.4%
8Q:–
Return on Invested Capital (ROIC)Top 25%
17.7%
8Q:–
-2.1%
vs Sector:-0.0%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 22.4%
Asset Turnover: 0.49x
Earnings Quality
Cash Conversion
0.92x
OCF / Net Income
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin67.9%
Capital Efficiency
Invested Capital Turnover0.79x
Working Capital
Cash Conversion Cycle107 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
6.0%
OpInc Growth YoY
53.6%
EPS Growth YoY
90.7%
FCF 3Y CAGR
4.7%
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
67.9%
Operating
27.2%
Top 25% in sector
Net
28.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-7.5 pts
FCF: 20.9% | Net: 28.5%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Net Debt / EBITDA
–Net Debt: $27.84B
Interest Coverage
–
Balance sheet risk & solvency analysis