Company Overview
Johnson & Johnson is a U.S.-based pharmaceuticals company listed on the New York Stock Exchange. It develops and sells healthcare products across pharmaceuticals, medical devices, and consumer health categories. The company generates income from a broad portfolio of prescription drugs, surgical and medical equipment, and over-the-counter consumer products. With a market capitalization of about $591.1 billion, it remains one of the largest diversified healthcare companies globally.
Analysis of recent data
FundamentalsFor the latest annual period ending 2025-12-28, Johnson & Johnson reported revenue of 94,193,000,000 in reported USD figures, representing 6.05% year-over-year growth. EBIT and net income were not provided, limiting visibility into full profitability, but margins remain strong on a trailing basis.
The company’s trailing gross margin of 67.92% and operating margin of 34.59% indicate a wide spread between sales and costs, supporting resilience against input cost pressures. A 28.46% net profit margin shows that a large portion of revenue converts to bottom-line profit.
Return on equity of 33.78% highlights strong profitability relative to shareholder capital. However, total debt of 47,933,000,000 exceeds cash of 19,709,000,000, suggesting reliance on consistent cash generation to maintain balance sheet strength.
Depreciation and amortization of 7,503,000,000 and capital expenditures of 4,832,000,000 reflect ongoing reinvestment. Interest coverage and net-
Valuation
DCF / MultiplesAt a current price of 245.3, Johnson & Johnson trades between the model’s fair value points of 192.42 (bear), 281.62 (base), and 389.17 (bull). This places the stock above the downside scenario but below the central estimate.
The valuation implies that investors expect the company to maintain its current profitability levels, with a 34.59% operating margin and 28.46% net margin supporting a 22.05x trailing P/E and 15.90x EV/EBITDA multiple.
Given the wide fair value range, the stock appears reasonably priced for its risk profile. The main uncertainty lies in missing profit and coverage data, which makes it harder to gauge how earnings would hold up under stress.
Conclusion
TakeawayThe stock looks reasonably valued relative to its fair value range. The market seems to expect Johnson & Johnson to sustain its strong margins and steady growth. The main risk is that profitability or cash coverage could weaken if conditions change.