Johnson & Johnson (JNJ) stock analysis
Company overview and business model
Source fact: 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.
Classification: NYSE · Healthcare · Drug Manufacturers - General
Revenue and growth
Source fact: Revenue was USD 94.19 billion for the period ending 2025-12-31.
Caverian calculation: Revenue changed +6.0% (FY2025 vs FY2024).
Profitability
Source fact: Net income was USD 26.80 billion in the latest reported period.
Source metric: Reported net margin was 28.5%.
Balance sheet and liquidity
Source fact: Cash and equivalents were USD 19.71 billion.
Source fact: Total debt was USD 47.93 billion.
Source metric: Current ratio was 1.03x.
Cash-flow analysis
Source fact: Operating cash flow was USD 24.53 billion.
Source fact: Free cash flow was USD 19.31 billion.
Valuation
Source metrics: Trailing P/E 31.06x; Forward P/E 21.96x; Price to book 7.66x; Price to sales 6.65x; EV/EBITDA 19.49x.
Caverian model output: Value score was 45/100.
Competitive position
Classification: Peer context: Drug Manufacturers - General within Healthcare.
Caverian model output: Quality score was 70/100.
Caverian model output: Growth score was 78/100.
Material risks
Caverian calculation: Piotroski F-score was 4/9.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles