JOHNSON & JOHNSON (JNJ) Factsheet
JOHNSON & JOHNSON (JNJ) Stock Analysis
Analysis from 10-Q filed 2025-10-22. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 16.8%. FCF margin 18.5%. D/E 0.7x. Source: 10-Q filed 2025-10-22.
| Metric | Value | Context |
|---|---|---|
| ROIC | 16.8% | Solid returns |
| FCF Margin | 18.5% | Strong cash generation |
| Debt/Equity | 0.7x | Moderate leverage |
ROIC 16.8% — Top 25% of sector peers. FCF margin 18.5% — Top 5%.
Explore JOHNSON & JOHNSON: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for JNJ: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: JOHNSON & JOHNSON earns 16.8% ROIC, Top 25% in Healthcare
ROIC TTM 16.8%, sector median -2.6%, Top 25%. DuPont: NOPAT margin 22.6% × asset turnover 0.5x. Gross margin 67.8%. Operating margin 26.8%. Source: 10-Q filed 2025-10-22.
| Metric | JNJ | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Above sector median of -2.6% |
| Return on Equity (ROE) | 26.4% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 67.8% | Excellent | Strong pricing power |
| Operating Margin | 26.8% | Excellent | Efficient operations |
Cash Flow: JOHNSON & JOHNSON generates $17.8B FCF at 18.5% margin, positive NaN/8 quarters
FCF TTM $17.8B. FCF margin 18.5%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-22.
| Metric | JNJ | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 18.5% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $17.8B | Good | Positive cash generation |
| OCF/Net Income | 1.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: JOHNSON & JOHNSON at 0.7x leverage
Debt/Equity 0.7x. Total debt $55.0B, cash & investments $22.1B. Source: 10-Q filed 2025-10-22.
| Metric | JNJ | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Good | Moderate leverage |
| Net Cash Position | $-32.9B | Warning | Net debt position |
Valuation: JOHNSON & JOHNSON trades at 27.5x earnings
P/E 27.5x. EV/Sales 6.3x. FCF yield 3.1%. Dividend yield 2.2%. Source: 10-Q filed 2025-10-22.
| Metric | JNJ | Rating | Context |
|---|---|---|---|
| P/E Ratio | 27.5x | Adequate | Premium valuation |
| EV/Sales | 6.3x | Adequate | Growth premium priced in |
| FCF Yield | 3.1% | Adequate | Lower cash yield |
| Dividend Yield | 2.2% | Adequate | Growth focus over income |
Capital Allocation: JOHNSON & JOHNSON returns 3.5% shareholder yield
Total shareholder yield 3.5% (div 2.2% + buyback 1.4%). Capital returned $20.4B TTM. Source: 10-Q filed 2025-10-22.
| Metric | JNJ | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.5% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.4% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $20.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Top 25% | - |
| Free Cash Flow Margin | 18.5% | Top 5% | - |
| Gross Margin | 67.8% | Top 50% | 1.1x above |
| Operating Margin | 26.8% | Top 25% | 10.0x above |
| Return on Equity (ROE) | 26.4% | Top 25% | - |
| P/E Ratio | 27.5x | N/A | - |
Financial Scorecard
| Metric | JNJ | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Top 25% of sector (median: -2.6%) |
| Free Cash Flow Margin | 18.5% | Good | Top 5% of sector (median: 0.0%) |
| Gross Margin | 67.8% | Excellent | Top 50% of sector (median: 63.8%) |
| Debt to Equity Ratio | 67.7% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 27.5x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.1% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is JOHNSON & JOHNSON's Return on Invested Capital (ROIC)?
JOHNSON & JOHNSON (JNJ) has a trailing twelve-month Return on Invested Capital (ROIC) of 16.8%. Sector median -2.6%. Source: 10-Q filed 2025-10-22.
Q: What is JOHNSON & JOHNSON's Free Cash Flow Margin?
JOHNSON & JOHNSON (JNJ) has a free cash flow margin of 18.5%, generating $17.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-22.
Q: What is JOHNSON & JOHNSON's P/E ratio and how does it compare to peers?
JOHNSON & JOHNSON (JNJ) trades at a P/E ratio of 27.5x, which is above the sector median of N/A. EV/Sales 6.3x. FCF yield 3.1%. Source: 10-Q filed 2025-10-22.
Q: Does JOHNSON & JOHNSON pay a dividend?
JOHNSON & JOHNSON (JNJ) currently pays a dividend yield of 2.2%. Total shareholder yield (dividend + buybacks) 3.5%. Source: 10-Q filed 2025-10-22.
Q: How much debt does JOHNSON & JOHNSON have?
JOHNSON & JOHNSON (JNJ) has a debt-to-equity ratio of 0.7x with total debt of $55.0 billion. Net debt $32.9 billion. Source: 10-Q filed 2025-10-22.
Q: What is JOHNSON & JOHNSON's revenue and earnings growth?
JOHNSON & JOHNSON (JNJ) grew revenue by 7.9% year-over-year. EPS -3.9% YoY. Source: 10-Q filed 2025-10-22.
Q: Is JOHNSON & JOHNSON buying back stock?
JOHNSON & JOHNSON (JNJ) repurchased $7.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.4%. Source: 10-Q filed 2025-10-22.
Q: How does JOHNSON & JOHNSON compare to competitors in Healthcare?
Compared to other companies in Healthcare, JOHNSON & JOHNSON (JNJ) shows: ROIC 16.8%, sector median -2.6% (Top 25%). FCF margin 18.5%, sector median 0.0% (Top 5%). Gross margin 67.8%, 4.0pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with JOHNSON & JOHNSON?
No quantitative warning flags fired for JOHNSON & JOHNSON (JNJ) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-22.
Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.