JOHNSON & JOHNSON (JNJ) Factsheet
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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.