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Johnson & Johnson (JNJ) Stock Analysis

This is a peer-relative look at Johnson & Johnson (JNJ): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Johnson & Johnson (JNJ)
Profile ItemJNJ
NameJohnson & Johnson
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
GICS Sub-IndustryPharmaceuticals
Market Capitalization603.27 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 2, 1962
Security TypeCommon Stock

Price Performance

Cumulative Growth

JNJ
GSPC
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Johnson & Johnson (JNJ) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Total Return (1Y)56.29%47.89%
Total Return (3Y, Annualized)17.14%9.98%
Total Return (5Y, Annualized)11.22%-4.89%

Risk Profile

Drawdown History

JNJ
GSPC
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Johnson & Johnson (JNJ) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Volatility (1Y, Annualized)18.09%69.09%
Beta (5Y)0.240.91
Max Drawdown (5Y)-18.41%-82.64%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. JNJ is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Sharpe Ratio (1Y)2.890.81
Sortino Ratio (1Y)4.861.37

Profitability

ROE (TTM)

No usable ROE is available for Johnson & Johnson (JNJ) this period, so the shareholder-equity return read is skipped.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

--

Group distribution
Max
99.40%
Q3
2.50%
Median
-31.42%
Q1
-62.21%
Min
-157.07%
JNJ
--
Largest peers
LLY
107.46%
NVO
71.40%
NVS
34.93%
AZN
23.48%
MRK
18.94%
JNJ
--
ABBV
--
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Johnson & Johnson (JNJ) doesn’t report ROE this period; the box shows the Pharmaceuticals, Biotechnology & Life Sciences group’s distribution and the dots its largest members.

Net Margin (TTM)

Johnson & Johnson (JNJ) keeps 21.48% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.48%

Group distribution
JNJ
21.48%
Max
11.75%
Q3
2.69%
Median
0.00%
Q1
-3.38%
Min
-11.53%
Largest peers
NVO
37.21%
LLY
34.99%
NVS
23.92%
JNJ
21.48%
AZN
17.19%
MRK
13.59%
ABBV
5.79%
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Where Johnson & Johnson (JNJ) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Johnson & Johnson (JNJ) turns 28.61% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

28.61%

Group distribution
Max
100.30%
JNJ
28.61%
Q3
4.66%
Median
0.00%
Q1
-121.08%
Min
-309.54%
Largest peers
NVO
61.57%
LLY
49.39%
MRK
38.60%
ABBV
32.16%
NVS
30.48%
JNJ
28.61%
AZN
27.94%
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Where Johnson & Johnson (JNJ) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
ROE (TTM)---31.42%
ROA (TTM)---15.76%
Net Margin (TTM)21.48%0.00%
Operating Margin (TTM)28.61%0.00%
Gross Margin (TTM)68.10%30.12%

Growth

Revenue Growth

Johnson & Johnson (JNJ) grew revenue 6.05%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Johnson & Johnson (JNJ): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Johnson & Johnson (JNJ) grew earnings per share 90.50%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Johnson & Johnson (JNJ): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Revenue Growth (YoY)6.05%11.61%
Revenue Growth (3Y CAGR)5.60%10.74%
EPS Growth (YoY)90.50%1.77%
EPS Growth (3Y CAGR)17.90%3.04%

Financial Strength

Current Ratio (MRQ)

No usable current ratio is available for Johnson & Johnson (JNJ) this period, so the short-term liquidity read is skipped.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

--

Group distribution
Max
26.16
Q3
12.33
Median
5.81
Q1
2.71
Min
0.28
JNJ
--
Largest peers
LLY
1.50
MRK
1.30
AZN
0.91
NVS
0.85
ABBV
0.80
NVO
0.79
JNJ
--
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Johnson & Johnson (JNJ) doesn’t report current ratio this period; the box shows the Pharmaceuticals, Biotechnology & Life Sciences group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Johnson & Johnson (JNJ) has debt-to-equity ratio of 0.68, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.68

Group distribution
Max
1.60
Q3
0.68
JNJ
0.68
Median
0.15
Q1
0.02
Min
0.00
Largest peers
LLY
1.39
NVS
1.21
MRK
1.07
NVO
0.72
AZN
0.72
JNJ
0.68
ABBV
--
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Where Johnson & Johnson (JNJ) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Current Ratio (MRQ)--5.81
Debt / Equity (MRQ)0.680.15
Net Debt / EBITDA0.951.05

Dividends

Dividend Yield (TTM)

Johnson & Johnson (JNJ) has dividend yield of 2.11%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.11%

Group distribution
JNJ
2.11%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NVO
23.58%
ABBV
2.66%
MRK
2.64%
JNJ
2.11%
AZN
1.95%
LLY
0.54%
NVS
0.00%
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Where Johnson & Johnson (JNJ) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Johnson & Johnson (JNJ) has payout ratio of 60.79%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.79%

Group distribution
JNJ
60.79%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ABBV
325.98%
MRK
93.52%
NVS
67.91%
JNJ
60.79%
AZN
47.70%
NVO
42.59%
LLY
22.13%
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Where Johnson & Johnson (JNJ) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
Dividend Yield (TTM)2.11%0.00%
Dividend Payout Ratio (TTM)60.79%0.00%

Valuation

P/E Ratio (TTM)

Johnson & Johnson (JNJ) trades at P/E ratio of 28.91, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

28.91

Group distribution
Max
79.93
Q3
47.39
JNJ
28.91
Median
25.31
Q1
15.26
Min
2.05
Largest peers
ABBV
123.72
LLY
40.81
MRK
35.07
JNJ
28.91
AZN
24.76
NVS
21.40
NVO
11.90
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Where Johnson & Johnson (JNJ) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Johnson & Johnson (JNJ) trades at 6.16 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.16

Group distribution
Max
63.16
Q3
28.29
Median
8.07
JNJ
6.16
Q1
3.52
Min
0.01
Largest peers
LLY
14.51
ABBV
7.20
JNJ
6.16
NVS
5.17
MRK
4.74
AZN
4.35
NVO
0.67
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Where Johnson & Johnson (JNJ) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Johnson & Johnson (JNJ) trades at 7.43 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.43

Group distribution
Max
16.09
Q3
7.48
JNJ
7.43
Median
3.80
Q1
1.72
Min
-5.70
Largest peers
LLY
33.66
NVS
7.62
JNJ
7.43
NVO
7.08
MRK
6.80
AZN
5.54
ABBV
-67.99
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Where Johnson & Johnson (JNJ) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: JNJIndustry group median
P/E Ratio (TTM)28.9125.31
P/S Ratio (TTM)6.168.07
P/B Ratio (MRQ)7.433.80
Free Cash Flow Yield (TTM)---2.02%