Johnson & Johnson (JNJ) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Johnson & Johnson

NYSE•Healthcare•Drug Manufacturers - General

$270.56-2.64(-0.01%)Pre-market

Market Cap

$651.94B

P/E

40.5x

P/S

6.6x

P/B

8.0x

Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment provides a portfolio of products used in the surgery, orthopedic, cardiovascular, and vision fields distributed through wholesalers, hospitals and retailers, and used in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. This segment also offers products and enabling technologies that support joint reconstruction, trauma, spine, sports related injuries, and others, as well as open, laparoscopic, and robotic surgical procedures; instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies; breast aesthetics and reconstruction; contact lenses under the ACUVUE brand; intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures under the TECNIS brand. The company was founded in 1886 and is based in New Brunswick, New Jersey.

How this company scores

GoodMetricSide Score: 69/100

Strongest: Cash & Earnings Quality (23/25); weakest: Growth (12/25).

Profitability16/25

Growth12/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality23/25

Strengths

Strong marginsHigh ROELow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 40.5x5y range 9.3x – 40.5x

Currently above its 20-quarter median.

P/S · 6.6x5y range 3.9x – 6.6x

Currently above its 20-quarter median.

P/B · 8.0x5y range 4.7x – 8.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $651.94B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $99.33B
Q. Revenue: $25.40B
TTM EBITDA: $37.37B
TTM Op. Income: $25.56B
Q. Op. Income: $6.37B
TTM Net Income: $16.09B
Q. Net Income: $210.00M
EPS: $0.09
Shares Out.: $2.41B

$99.33B in TTM revenue grew 7.8% YoY, reaching $25.40B last quarter. TTM EBITDA of $37.37B and TTM operating income of $25.56B show growth is flowing through to the bottom line. TTM net income of $16.09B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 68.1%
EBITDA Margin: 33.4%
Op. Margin: 25.1%
Net Margin: 0.8%

Op. margin of 25.1% is down 4.5% YoY — costs are rising relative to revenue. Net margin at 0.8% and gross margin of 68.1% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 15% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 40.5x
P/S Ratio: 6.6x
P/B Ratio: 8.0x

At 40.5x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 6.6x and P/B of 8.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $197.43B
Cash: $16.91B
Long-Term Debt: $35.80B
Book Value: $81.53B
D/E Ratio: 0.4
Debt/EBITDA: 4.2

With $197.43B in assets and $35.80B in long-term debt, D/E is 0.4and book value is $81.53B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 5 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $7.72B
TTM Free Cash Flow: $20.59B
FCF Margin: 20.7%
FCF / Net Income: 1.3

TTM FCF of $20.59B on $7.72B in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 5% — a weakening trend.