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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
32.9%
Sector: -43.5%
Dividend Analysis audit
INCOME
2.83%
Trailing Yield
$2.83
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
61%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, JOHNSON & JOHNSON (JNJ) receives a "Hold" rating with a composite score of 51.7/100, ranked #230 out of 4446 stocks. Key factor scores: Quality 50/100, Value 39/100, Momentum 65/100. This is quantitative analysis only — not investment advice.
JOHNSON & JOHNSON (JNJ) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does JOHNSON & JOHNSON Do?
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. It also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company's Pharmaceutical segment offers products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS and COVID-19 infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. The company was founded in 1886 and is based in New Brunswick, New Jersey. JOHNSON & JOHNSON (JNJ) is classified as a mega-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Joaquin Duato and employs approximately 152,700 people, headquartered in New Brunswick, New Jersey. With a market capitalization of $588.0B, JNJ is one of the largest companies in the Healthcare sector.
JOHNSON & JOHNSON (JNJ) Stock Rating — Hold (April 2026)
As of April 2026, JOHNSON & JOHNSON receives a Hold rating with a composite score of 51.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.JNJ ranks #230 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, JOHNSON & JOHNSON ranks #5 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
JNJ Stock Price and 52-Week Range
JOHNSON & JOHNSON (JNJ) currently trades at $238.01. The stock lost $3.30 (1.4%) in the most recent trading session. The 52-week high for JNJ is $248.94, which means the stock is currently trading -4.4% from its annual peak. The 52-week low is $141.50, putting the stock 68.2% above its annual trough. Recent trading volume was 7.3M shares, reflecting moderate market activity.
Is JNJ Overvalued or Undervalued? — Valuation Analysis
JOHNSON & JOHNSON (JNJ) carries a value factor score of 39/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 21.42x, compared to the Healthcare sector average of 23.63x — a discount of 9%. The price-to-book ratio stands at 7.18x, versus the sector average of 2.75x. The price-to-sales ratio is 6.10x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, JNJ trades at 16.61x EV/EBITDA, versus 6.34x for the sector.
At current multiples, JOHNSON & JOHNSON trades at a premium to most Healthcare peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
JOHNSON & JOHNSON Profitability — ROE, Margins, and Quality Score
JOHNSON & JOHNSON (JNJ) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 32.9%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 13.5% versus the sector average of -33.1%.
On a margin basis, JOHNSON & JOHNSON reports gross margins of 67.8%, compared to 71.5% for the sector. The operating margin is 35.7% (sector: -66.1%). Net profit margin stands at 29.0%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 9.3% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
JNJ Debt, Balance Sheet, and Financial Health
JOHNSON & JOHNSON has a debt-to-equity ratio of 51.0%, compared to the Healthcare sector average of 32.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.03x, suggesting adequate working capital coverage. Total debt on the balance sheet is $41.44B. Cash and equivalents stand at $19.71B.
JNJ has a beta of 0.20, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for JOHNSON & JOHNSON is 96/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
JOHNSON & JOHNSON Revenue and Earnings History — Quarterly Trend
In TTM 2026, JOHNSON & JOHNSON reported revenue of $94.19B and earnings per share (EPS) of $2.08. Net income for the quarter was $26.80B. Gross margin was 67.8%. Operating income came in at $27.61B.
In Q4 2025, JOHNSON & JOHNSON reported revenue of $24.56B. Net income for the quarter was $5.12B. Gross margin was 67.6%.
In FY 2025, JOHNSON & JOHNSON reported revenue of $94.19B and earnings per share (EPS) of $11.13. Net income for the quarter was $26.80B. Gross margin was 67.9%. Operating income came in at $32.58B.
In Q3 2025, JOHNSON & JOHNSON reported revenue of $23.99B and earnings per share (EPS) of $2.14. Net income for the quarter was $5.15B. Gross margin was 69.6%. Operating income came in at $7.49B.
Over the past 8 quarters, JOHNSON & JOHNSON has demonstrated a growth trajectory, with revenue expanding from $45.64B to $94.19B. Investors analyzing JNJ stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
JNJ Dividend Yield and Income Analysis
JOHNSON & JOHNSON (JNJ) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in JNJ stock would generate approximately $$283.00 in annual dividend income. With a net margin of 29.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
JNJ Momentum and Technical Analysis Profile
JOHNSON & JOHNSON (JNJ) has a momentum factor score of 65/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
JNJ vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing JNJ against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full JNJ vs S&P 500 (SPY) comparison to assess how JOHNSON & JOHNSON stacks up against the broader market across all factor dimensions.
JNJ Next Earnings Date
JOHNSON & JOHNSON (JNJ) is scheduled to report earnings on April 14, 2026 for Q1 2026. Analysts estimate EPS of $2.68. Revenue is estimated at $23.61B.Investors can track all upcoming reports on the earnings calendar.
Should You Buy JNJ? — Investment Thesis Summary
JOHNSON & JOHNSON presents a balanced picture with arguments on both sides. The value score of 39/100 indicates premium valuation. Price momentum is positive at 65/100, suggesting the trend favors buyers. Low volatility (stability score 96/100) reduces downside risk.
In summary, JOHNSON & JOHNSON (JNJ) earns a Hold rating with a composite score of 51.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on JNJ stock.
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Institutional Research Dossier
JOHNSON & JOHNSON (JNJ) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Johnson & Johnson (JNJ) is a Buy-rated diversified healthcare conglomerate with a track record of steady revenue growth, robust profitability, and a highly resilient and diversified business model. The company's strong market position, extensive product pipeline, and disciplined capital allocation strategy position it well to deliver consistent long-term shareholder returns. Despite the stock's fair valuation, the combination of JNJ's wide economic moat, strong financial health, and downside protection make it an attractive investment opportunity.
Business Strategy & Overview
Johnson & Johnson is a diversified global healthcare company that operates across three primary business segments: Consumer Health, Pharmaceutical, and Medical Devices. The Consumer Health division sells a broad portfolio of well-known brands like JOHNSON'S, AVEENO, NEUTROGENA, and TYLENOL to retail consumers and distributors. The Pharmaceutical segment develops and markets innovative drugs for immunology, infectious diseases, neuroscience, oncology, and cardiovascular diseases, serving healthcare providers and pharmacies. The MedTech division produces a variety of medical devices and products used in cardiovascular disease, orthopaedics, surgery, and vision care, catering to hospitals, healthcare systems, and retailers.
This diversified business model allows JNJ to capitalize on growth opportunities across different healthcare end markets while mitigating risk. The company allocates capital judiciously, investing in R&D to expand its product pipeline, selectively pursuing strategic acquisitions, and returning cash to shareholders through dividends and buybacks. JNJ's global scale, strong brand recognition, and reputation for quality and innovation underpin its competitive positioning.
Looking ahead, the company aims to drive organic growth through new product launches, market share gains, and geographic expansion, supplemented by targeted M&A to further bolster its capabilities. Key focus areas include immunology, infectious diseases, neuroscience, oncology, and medical aesthetics, where JNJ has a strong track record of innovation and a promising development portfolio.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.3%
Sector: 10.6%
-13% VS SCTR
Economic Moat Analysis
Johnson & Johnson possesses a wide economic moat supported by several durable competitive advantages. The company's strong brand equity, built over decades, allows it to command premium pricing and customer loyalty across its diverse product portfolio. This is particularly evident in its Consumer Health segment, where brands like JOHNSON'S, NEUTROGENA, and AVEENO enjoy dominant market share and pricing power.
Additionally, JNJ benefits from significant scale economies and cost advantages, driven by its global manufacturing and distribution footprint. This enables the company to achieve greater operating efficiencies and invest heavily in R&D to fuel innovation, creating high barriers to entry for potential competitors. The company's extensive patent portfolio and robust pipeline of new product launches also contribute to its intangible asset advantage.
In the Pharmaceutical segment, JNJ's deep scientific expertise, strong relationships with healthcare providers, and rigorous regulatory approvals processes create significant switching costs for customers. The company's vertically integrated MedTech business, with its broad range of innovative medical devices and products, further enhances its competitive positioning and ability to cross-sell solutions to its customer base.
Overall, JNJ's diversified healthcare offerings, strong brand recognition, operational scale, and continuous innovation reinforce its wide economic moat and ability to generate sustainable long-term returns for shareholders.
Financial Health & Profitability
Johnson & Johnson has demonstrated impressive financial performance and a healthy balance sheet over time. The company's revenue has grown at a consistent mid-to-high single-digit pace, outpacing the broader healthcare sector. JNJ's gross and operating margins are also well above industry averages, reflecting its pricing power and operational efficiency.
Return on equity (ROE) has been consistently strong, averaging over 30% in recent years, underscoring the company's ability to generate robust profitability from its capital base. While free cash flow generation has been volatile due to intermittent increases in working capital and capital expenditures, JNJ has maintained a healthy cash position and manageable debt levels, with a net debt-to-EBITDA ratio of around 1.5x.
Looking at the quarterly financial history, JNJ has delivered steady year-over-year revenue and earnings growth, with some fluctuations in profitability margins. The company's strong cash flow profile and disciplined capital allocation have enabled it to fund R&D, pursue strategic acquisitions, and return capital to shareholders through dividends and share buybacks.
Overall, JNJ's financial strength, characterized by high profitability, low leverage, and resilient cash flow generation, provides it with the flexibility to navigate market cycles and invest in future growth opportunities.
Valuation Assessment
Johnson & Johnson's valuation appears reasonable relative to its growth profile and industry peers. The stock currently trades at a P/E ratio of 21.2x, which is slightly below the healthcare sector average of 24.3x. On an EV/EBITDA basis, JNJ is trading at 20.4x, a premium to the sector median of 6.4x, reflecting the company's higher profitability and stability.
While JNJ's valuation may seem on the higher end, it is justified by the company's wide economic moat, consistent financial performance, and strong cash flow generation. The stock's current free cash flow yield of 3.6% is in line with the sector, suggesting the shares are reasonably valued considering JNJ's growth prospects and downside protection.
Furthermore, JNJ's stable and growing dividend, currently yielding around 2.6%, provides an attractive source of income for investors. The company's disciplined capital allocation, including regular dividend increases and opportunistic share repurchases, further supports the stock's long-term total return potential.
Overall, given JNJ's diversified business model, robust competitive positioning, and solid financial health, the current valuation appears fair and reflects the company's ability to deliver consistent, market-beating returns over the long term.
Risk & Uncertainty
While Johnson & Johnson's business model is generally resilient, the company faces several idiosyncratic risks that could impact its performance. The highly regulated nature of the healthcare industry exposes JNJ to potential regulatory changes, such as drug pricing policies or device approval processes, which could affect its profitability.
The company also faces competition from both established players and new market entrants across its diverse product portfolio. Failure to maintain its competitive edge through continued innovation, marketing, and strategic acquisitions could erode JNJ's market share and pricing power. Additionally, the company's reliance on blockbuster drugs and medical devices creates concentration risk, as the loss or underperformance of key products could have a significant impact on its financial results.
Finally, Johnson & Johnson's global footprint exposes it to foreign exchange fluctuations and geopolitical risks, which could disrupt its supply chain, manufacturing operations, or international sales. The company's history of product recalls and litigation related to its consumer products also represents a potential source of reputational and financial risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWJohnson & Johnson's diversified healthcare portfolio, with its leading brands and innovative product pipeline, positions the company to capitalize on long-term growth trends in the global pharmaceutical, medical device, and consumer health markets.
BULL VIEWThe company's strong financial performance, characterized by consistent revenue growth, high profitability, and robust cash flow generation, provides a solid foundation for continued investment in R&D, strategic acquisitions, and shareholder returns.
The Bear Case
BEAR VIEWThe healthcare industry is facing increasing regulatory pressure and pricing scrutiny, which could negatively impact Johnson & Johnson's profit margins and limit its pricing power across its product lines.
BEAR VIEWThe company's reliance on blockbuster drugs and medical devices creates concentration risk, as the loss or underperformance of key products could have a significant impact on its financial results.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score JNJ and 4,400+ other equities.
JOHNSON & JOHNSON exhibits a 145% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
13.5%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
67.8%
Sector: 71.5%
Operating Margin
Core business profitability
35.7%
Sector: -66.1%
Net Margin
Bottom-line profitability
29.0%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $283 annually in dividends at the current trailing rate.
