Fundamental analysis · SEC EDGAR · TTM through 28/06/2026

Fundamental analysis of Johnson & Johnson

JNJ · NYSE · Healthcare

Fundamental quality

ATTRACTIVE

81

out of 100

Johnson & Johnson runs like a cash machine: it converts about 22.7% of revenue into free cash flow and holds a 21.5% net margin, though it grows at a measured pace. On fundamental quality it scores 81 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +3.2%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Johnson & Johnson is one of the world's largest health companies. After spinning off its consumer division, it focuses on two businesses: medicines (pharmaceuticals) and medical devices (medtech).

What will shape its future

  • Its drug pipeline and the arrival (or patent loss) of key medicines.
  • The growth of its medical-device business, tied to surgeries and an aging population.
  • Legal litigation and pressure on drug prices.

Breakdown by area

I.Growth
48

EPS growth: 8.5% · Revenue growth: 3.2%

II.Profitability
90

Net margin: 21.5% · ROE: 24.8% · ROIC: 19.3%

III.Financial health
93

Net debt/EBITDA: 0.84x · FCF: 22.7%

Source: SEC EDGAR · TTM through 28/06/2026

The score includes +4 for dividend strength: 64 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 84%
ROEbeats 78%
Growthbeats 12%
Cash generationbeats 78%
Less debtbeats 73%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Johnson & Johnson strengths

  • High gross margin (67.9%), pointing to pricing power.
  • Excellent free-cash-flow generation (FCF margin of 22.7%): profit turns into real cash.
  • Expanding margins: net margin has risen from 18% to 28% in recent years.
  • Strong return on equity (ROE of 24.8%): it puts shareholder capital to good use.

Johnson & Johnson risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Johnson & Johnson historical evolution

YearRevenueNet incomeFree cash flowNet debt
202182,58414,71420,18920,449
202278,74020,87819,75817,629
202379,99017,94117,18515,548
202385,15935,15318,2485,491
202488,82114,06619,8428,295
202594,19326,80419,69821,729

Between 2021 and 2025, revenue went from $82,584M to $94,193M (+14%) and net income went from $14,714M to $26,804M (+82%). Meanwhile, its margins have widened (from 18% to 28%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 28, 2026, versus the half-year ended June 29, 2025 (SEC filings):

  • Revenue+8.2%
  • Net income-34.9%

What changed with the June 28, 2026 results

Compared with the previous close (March 29, 2026), this is what moved in its accounts:

  • Quality score8081
  • ROE25.9%24.8%
  • FCF margin18.5%22.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$5.14

per share, yearly

64 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Johnson & Johnson cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Johnson & Johnson a good company to invest in?

In terms of business quality, Johnson & Johnson scores 81 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Johnson & Johnson a profitable company?

Very. Johnson & Johnson shows a net margin of 21.5% and an ROE of 24.8%, typical of a highly profitable business.

Does Johnson & Johnson have a lot of debt?

Not particularly. Its net debt is 0.84 times its EBITDA, a low level.

Is Johnson & Johnson growing?

Its revenue has grown 3.2% annualized in recent years and its earnings per share 8.5%.

Does Johnson & Johnson generate cash?

Yes. It converts about 22.7% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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