Johnson & Johnson stock: fundamental analysis
Stocks · JNJ · Healthcare
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. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 269.99 USD
- Market cap: 650.6B USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 25.7%: it earns a high return on shareholders' money. Out of every 100 in sales, 21.5 end up as profit.
Financial health
Net debt/EBITDA of 0.8x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
Growth
Revenue is growing 6.6% year on year: modest growth. Earnings are down 0.9%.
Valuation
It trades at a P/E of 31.3, in line with the 33.9 median of the healthcare companies we track. On expected earnings the P/E falls to 22.2: the market expects profits to rise.
Dividend
Dividend yield of 2.0% (5.36 USD per share per year) with a payout ratio of 60.8%.
Tools
All metrics
| Johnson & Johnson | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 25.7% | 25.7% |
| ROA | 8.6% | 9.0% |
| Gross margin | 68.1% | 70.5% |
| Operating margin | 29.2% | 28.5% |
| Net margin | 21.5% | 15.6% |
| Financial health | ||
| Net debt/EBITDA | 0.8x | 2.0x |
| Debt/equity | 0.6x | 0.7x |
| Current ratio | 1.1x | 1.3x |
| Growth | ||
| Revenue growth | 6.6% | 10.2% |
| Earnings growth | -0.9% | 139.8% |
| Valuation | ||
| P/E ratio | 31.3x | 33.9x |
| Forward P/E | 22.2x | 16.7x |
| EV/EBITDA | 19.5x | 17.0x |
| Price/book | 7.7x | 4.2x |
| FCF yield | 2.6% | 4.7% |
| Dividend | ||
| Dividend yield | 2.0% | 1.8% |
| Payout ratio | 60.8% | 48.0% |
| Beta (volatility) | 0.2x | 0.3x |
Frequently asked questions
What is Johnson & Johnson's P/E ratio?
Johnson & Johnson's P/E is 31.3 based on trailing 12-month earnings and 22.2 on expected earnings. The median for its sector among the companies we track is 33.9. Data as of September 18, 2026.
What dividend does Johnson & Johnson pay?
Dividend yield of 2.0% (5.36 USD per share per year) with a payout ratio of 60.8%.
Is Johnson & Johnson stock expensive?
It trades at a P/E of 31.3, in line with the 33.9 median of the healthcare companies we track. On expected earnings the P/E falls to 22.2: the market expects profits to rise. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Johnson & Johnson have a lot of debt?
Net debt/EBITDA of 0.8x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
What is Johnson & Johnson's market cap?
Johnson & Johnson has a market cap of 650.6B USD and its shares trade at 269.99 USD, with a 52-week range of 173.33 USD to 281.07 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.