# Johnson & Johnson (JNJ) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Healthcare / Pharmaceuticals. Price $266.17, market value $640.8 billion.

## Valuation
- **P/E (trailing): 40.4×** (5-yr avg 19.3×, 3-yr avg 17.8×). Johnson & Johnson trades at 40.4× trailing earnings, well above its own five-year average of 19.3×: investors are paying up relative to the company's past. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 22.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.25**. A PEG of 0.25 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 6.5×**. Each dollar of revenue is priced at 6.5×.
- **Price / book: 7.9×**. The shares trade at 7.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 3.2%** (5-yr avg 4.7%). Free cash flow equals 3.2% of the market value, below its five-year average of 4.7%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.5%**. The inverse of the P/E: 2.5% of the price is earned each year.

## Profitability
- **Gross margin: 67.6%**. Johnson & Johnson keeps 67.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Net margin: 28.5%**. 28.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 32.9%**. 32.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 8.1%**. Each dollar of assets produces 8.1% of profit.

## Growth
- **Revenue growth (1 yr): 6.0%** (3-yr 5.6%/yr, 5-yr 2.7%/yr). Revenue grew 6.0% over the last year, against 2.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 90.5%** (3-yr 17.9%/yr, 5-yr 14.9%/yr). Earnings per share rose 90.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 4.7%/yr**. Free cash flow has compounded at 4.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.59**. Debt is 0.59 times equity, moderate leverage.
- **Current ratio: 1.03** (quick 1.03). Current assets cover the next year's liabilities 1.03 times.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.01%** ($5.28 per share, trailing). Johnson & Johnson yields 2.01%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 46%**. 46% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 5.2%/yr** (1-yr 4.7%). The dividend has grown 5.2% a year over five years.

## Analyst view
- **Analyst consensus: buy** (22 analysts). 22 analysts cover Johnson & Johnson; the consensus is buy, with an average price target of $279.41 (+5% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 45.8%** (YTD 32.2%, 3-mo 6.3%). The shares are up 45.8% over twelve months including dividends.
- **From 52-week high: -5.6%** (43.8% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): -0.17** (volatility 21%). Beta of -0.17 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=JNJ · Page: https://foliofundamentals.com/stocks/jnj

Not investment advice.