JOHNSON & JOHNSON (JNJ) Factsheet

Earnings-call transcript: none · IR deck: cataloged — watch a real agent read these end-to-end →

JOHNSON & JOHNSON (JNJ) Stock Analysis

Analysis from 10-Q filed 2026-07-23. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 16.8%. FCF margin 22.7%. D/E 0.6x. Source: 10-Q filed 2026-07-23.

Metric Value Context
ROIC 16.8% Solid returns
FCF Margin 22.7% Strong cash generation
Debt/Equity 0.6x Moderate leverage

ROIC 16.8% — Top 25% of sector peers. FCF margin 22.7% — Top 25%.

Explore JOHNSON & JOHNSON: Earnings History | Filings

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 -7.4%, Top 25%. DuPont: NOPAT margin 22.4% × asset turnover 0.5x. Gross margin 67.9%. Operating margin 26.8%. Source: 10-Q filed 2026-07-23.

Metric JNJ Rating Context
Return on Invested Capital (ROIC) 16.8% Good Above sector median of -7.4%
Return on Equity (ROE) 26.0% Excellent Efficient use of shareholder equity
Gross Margin 67.9% Excellent Strong pricing power
Operating Margin 26.8% Excellent Efficient operations

Cash Flow: JOHNSON & JOHNSON generates $22.2B FCF at 22.7% margin, positive NaN/8 quarters

FCF TTM $22.2B. FCF margin 22.7%, Top 25%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-07-23.

Metric JNJ Rating Context
Free Cash Flow Margin 22.7% Excellent Excellent cash conversion
Free Cash Flow (TTM) $22.2B Good Positive cash generation
OCF/Net Income 1.3x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: JOHNSON & JOHNSON at 0.6x leverage, 25.9x interest coverage

Debt/Equity 0.6x. Total debt $49.0B, cash & investments $20.8B. Interest coverage 25.9x. Source: 10-Q filed 2026-07-23.

Metric JNJ Rating Context
Debt to Equity 0.6x Good Moderate leverage
Net Cash Position $-28.3B Warning Net debt position
Interest Coverage 25.9x Excellent Comfortable debt service

Valuation: JOHNSON & JOHNSON trades at 30.3x earnings

P/E 30.3x. EV/Sales 6.8x. FCF yield 3.5%. Dividend yield 2.0%. Source: 10-Q filed 2026-07-23.

Metric JNJ Rating Context
P/E Ratio 30.3x Adequate Premium valuation
EV/Sales 6.8x Adequate Growth premium priced in
FCF Yield 3.5% Adequate Lower cash yield
Dividend Yield 2.0% Adequate Growth focus over income

Capital Allocation: JOHNSON & JOHNSON returns 3.2% shareholder yield

Total shareholder yield 3.2% (div 2.0% + buyback 1.3%). Share count +0.1% YoY. Capital returned $20.7B TTM. Source: 10-Q filed 2026-07-23.

Metric JNJ Rating Context
Total Shareholder Yield 3.2% Good Dividend + buyback yield combined
Buyback Yield 1.3% Adequate Minimal buyback activity
Share Count Change (YoY) 0.1% Adequate Net dilution from issuance/SBC
Total Capital Returned (TTM) $20.7B 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 22.7% Top 25% 34.7x above
Gross Margin 67.9% Top 50% 1.1x above
Operating Margin 26.8% Top 25% -
Return on Equity (ROE) 26.0% Top 25% -
P/E Ratio 30.3x N/A -

Financial Scorecard

Metric JNJ Rating Sector Context
Return on Invested Capital (ROIC) 16.8% Good Top 25% of sector (median: -7.4%)
Free Cash Flow Margin 22.7% Excellent Top 25% of sector (median: 0.7%)
Gross Margin 67.9% Excellent Top 50% of sector (median: 63.7%)
Debt to Equity Ratio 57.7% Good Moderate leverage
P/E Ratio (Price-to-Earnings) 30.3x Adequate Growth premium
Free Cash Flow Yield 3.5% 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%. The 8-quarter median ROIC is 17.1% with a declining trend. Sector median -7.4%. Source: 10-Q filed 2026-07-23.

Q: What is JOHNSON & JOHNSON's Free Cash Flow Margin?

JOHNSON & JOHNSON (JNJ) has a free cash flow margin of 22.7%, generating $22.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-07-23.

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 30.3x, which is above the sector median of N/A. EV/Sales 6.8x. FCF yield 3.5%. Source: 10-Q filed 2026-07-23.

Q: Does JOHNSON & JOHNSON pay a dividend?

JOHNSON & JOHNSON (JNJ) currently pays a dividend yield of 2.0%. Total shareholder yield (dividend + buybacks) 3.2%. Source: 10-Q filed 2026-07-23.

Q: How much debt does JOHNSON & JOHNSON have?

JOHNSON & JOHNSON (JNJ) has a debt-to-equity ratio of 0.6x with total debt of $49.0 billion. Interest coverage 25.9x. Net debt $28.3 billion. Source: 10-Q filed 2026-07-23.

Q: What is JOHNSON & JOHNSON's revenue and earnings growth?

JOHNSON & JOHNSON (JNJ) grew revenue by 8.1% year-over-year. EPS -7.7% YoY. Source: 10-Q filed 2026-07-23.

Q: Is JOHNSON & JOHNSON buying back stock?

JOHNSON & JOHNSON (JNJ) repurchased $8.1 billion of stock over the trailing twelve months. This represents a buyback yield of 1.3%. Share count +0.1% YoY. Source: 10-Q filed 2026-07-23.

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 -7.4% (Top 25%). FCF margin 22.7%, sector median 0.7% (Top 25%). Gross margin 67.9%, 4.2pp 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 2026-07-23.


Data Source: Data sourced from 10-Q filed 2026-07-23. TTM metrics as of Q2 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.