Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin27.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin28.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt1.8 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$37.9B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$1.5B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$19.3B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income19.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$39.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit67.9%
Operating Margin27.2%
Net Margin28.5%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
67.9%▼
69.1%▲
68.8%▼
69.3%•
N/A
Operating Margin %
27.2%▲
23.9%▼
25.8%▼
26.3%•
N/A
Net Income %
28.5%▲
15.8%▼
41.3%▲
22.4%•
N/A
Diluted EPS
11.03▲
5.79▼
13.72▲
6.73•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$199.2B
$180.1B
$167.6B
$187.4B
N/A
Total Debt
$47.9B▲
$36.6B▲
$29.3B▼
$39.6B•
N/A
Working Capital
$1.5B▼
$5.6B▼
$7.2B▲
-$508M•
N/A
Years to Pay Debt
1.79
2.60
0.83
2.21
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
Free Cash Flow
$19.3B▲
$18.1B▲
$17.8B▲
$17.2B
Owner Earnings
$39.5B
$27.6B
$47.7B
$28.9B
CapEx % of Net Income
19.5%
44.1%
14.3%
22.3%
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
1,044,545
-1,106,547
-92,230
-162,932
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
35,164,000
31,826,000
24,122,000
27,663,000
Total Unusual Items
5,891,000
-7,045,000
-802,000
-1,058,000
Total Unusual Items Excluding Goodwill
5,891,000
-7,045,000
-802,000
-1,058,000
Net Income From Continuing Operation Net Minority Interest
26,804,000
14,066,000
13,326,000
16,370,000
Reconciled Depreciation
7,503,000
7,339,000
7,486,000
6,970,000
Reconciled Cost Of Revenue
30,256,000
27,471,000
26,553,000
24,596,000
EBITDA
41,055,000
24,781,000
23,320,000
26,605,000
EBIT
33,552,000
17,442,000
15,834,000
19,635,000
Net Interest Income
85,000
577,000
489,000
214,000
Interest Expense
971,000
755,000
772,000
276,000
Interest Income
1,056,000
1,332,000
1,261,000
490,000
Normalized Income
21,957,545
20,004,453
14,035,770
17,265,068
Net Income From Continuing And Discontinued Operation
26,804,000
14,066,000
35,153,000
17,941,000
Total Expenses
68,597,000
67,572,000
63,150,000
58,977,000
Diluted Average Shares
2,429,400
2,429,400
2,560,400
2,663,900
Basic Average Shares
2,407,939
2,406,922
2,407,078
2,613,597
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
26,804,000
14,066,000
35,153,000
17,941,000
Net Income Common Stockholders
26,804,000
14,066,000
35,153,000
17,941,000
Net Income
26,804,000
14,066,000
35,153,000
17,941,000
Net Income Including Noncontrolling Interests
26,804,000
14,066,000
35,153,000
17,941,000
Net Income Discontinuous Operations
0
0
21,827,000
1,571,000
Net Income Continuous Operations
26,804,000
14,066,000
13,326,000
16,370,000
Tax Provision
5,777,000
2,621,000
1,736,000
2,989,000
Pretax Income
32,581,000
16,687,000
15,062,000
19,359,000
Other Income Expense
6,891,000
-5,145,000
-7,436,000
-1,868,000
Other Non Operating Income Expenses
1,000,000
1,900,000
-6,634,000
-810,000
Special Income Charges
5,491,000
-6,745,000
-802,000
-1,058,000
Other Special Charges
-6,000,000
5,500,000
7,300,000
2,600,000
Impairment Of Capital Assets
81,000
211,000
313,000
783,000
Restructuring And Mergern Acquisition
428,000
1,034,000
489,000
275,000
Gain On Sale Of Security
400,000
-300,000
-600,000
-700,000
Net Non Operating Interest Income Expense
85,000
577,000
489,000
214,000
Interest Expense Non Operating
971,000
755,000
772,000
276,000
Interest Income Non Operating
1,056,000
1,332,000
1,261,000
490,000
Operating Income
25,596,000
21,249,000
22,009,000
21,013,000
Operating Expense
38,341,000
40,101,000
36,597,000
34,381,000
Research And Development
14,665,000
17,232,000
15,085,000
14,135,000
Selling General And Administration
23,676,000
22,869,000
21,512,000
20,246,000
General And Administrative Expense
22,869,000
21,512,000
20,246,000
20,118,000
Other Gand A
22,869,000
21,512,000
20,246,000
20,118,000
Salaries And Wages
-900,000
-1,400,000
-1,200,000
-600,000
Gross Profit
63,937,000
61,350,000
58,606,000
55,394,000
Cost Of Revenue
30,256,000
27,471,000
26,553,000
24,596,000
Total Revenue
94,193,000
88,821,000
85,159,000
79,990,000
Operating Revenue
94,193,000
88,821,000
85,159,000
79,990,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
711,904
712,921
712,765
506,246
Ordinary Shares Number
2,407,939
2,406,922
2,407,078
2,613,597
Share Issued
3,119,843
3,119,843
3,119,843
3,119,843
Net Debt
28,224,000
12,529,000
7,473,000
26,753,000
Total Debt
47,933,000
36,634,000
29,332,000
39,642,000
Tangible Book Value
-17,631,000
-10,328,000
-1,959,000
2,268,000
Invested Capital
129,477,000
108,124,000
98,106,000
116,446,000
Working Capital
1,498,000
5,572,000
7,213,000
-508,000
Net Tangible Assets
-17,631,000
-10,328,000
-1,959,000
2,268,000
Common Stock Equity
81,544,000
71,490,000
68,774,000
76,804,000
Total Capitalization
120,982,000
102,141,000
94,655,000
103,690,000
Total Equity Gross Minority Interest
81,544,000
71,490,000
68,774,000
76,804,000
Stockholders Equity
81,544,000
71,490,000
68,774,000
76,804,000
Gains Losses Not Affecting Retained Earnings
-14,930,000
-11,741,000
-12,527,000
-12,967,000
Other Equity Adjustments
-14,930,000
-11,741,000
-12,527,000
-12,967,000
Treasury Stock
75,624,000
75,680,000
75,662,000
41,694,000
Retained Earnings
153,843,000
128,345,000
123,060,000
Additional Paid In Capital
168,978,000
155,791,000
153,843,000
128,345,000
Capital Stock
3,120,000
3,120,000
3,120,000
3,120,000
Common Stock
3,120,000
3,120,000
3,120,000
3,120,000
Total Liabilities Net Minority Interest
117,666,000
108,614,000
98,784,000
110,574,000
Total Non Current Liabilities Net Minority Interest
63,540,000
58,293,000
52,502,000
54,772,000
Other Non Current Liabilities
9,868,000
17,549,000
13,398,000
10,146,000
Liabilities Heldfor Sale Non Current
0
2,901,000
Employee Benefits
6,957,000
7,255,000
7,149,000
6,542,000
Tradeand Other Payables Non Current
486,000
390,000
2,881,000
4,306,000
Non Current Deferred Liabilities
6,791,000
2,448,000
3,193,000
3,991,000
Non Current Deferred Taxes Liabilities
6,791,000
2,448,000
3,193,000
3,991,000
Long Term Debt And Capital Lease Obligation
39,438,000
30,651,000
25,881,000
26,886,000
Long Term Debt
39,438,000
30,651,000
25,881,000
26,886,000
Current Liabilities
54,126,000
50,321,000
46,282,000
55,802,000
Other Current Liabilities
3,590,000
Current Debt And Capital Lease Obligation
8,495,000
5,983,000
3,451,000
12,756,000
Current Debt
8,495,000
5,983,000
3,451,000
12,756,000
Other Current Borrowings
8,495,000
5,983,000
Pensionand Other Post Retirement Benefit Plans Current
4,534,000
4,126,000
3,993,000
3,049,000
Payables And Accrued Expenses
41,097,000
40,212,000
38,838,000
36,407,000
Current Accrued Expenses
27,718,000
26,129,000
26,213,000
24,298,000
Payables
13,379,000
14,083,000
12,625,000
12,109,000
Total Tax Payable
1,388,000
3,772,000
2,993,000
2,220,000
Income Tax Payable
1,388,000
3,772,000
2,993,000
2,220,000
Accounts Payable
11,991,000
10,311,000
9,632,000
9,889,000
Total Assets
199,210,000
180,104,000
167,558,000
187,378,000
Total Non Current Assets
143,586,000
124,211,000
114,063,000
132,084,000
Other Non Current Assets
14,368,000
11,414,000
14,153,000
30,619,000
Non Current Deferred Assets
6,874,000
10,461,000
9,279,000
8,947,000
Non Current Deferred Taxes Assets
6,874,000
10,461,000
9,279,000
8,947,000
Goodwill And Other Intangible Assets
99,175,000
81,818,000
70,733,000
74,536,000
Other Intangible Assets
50,403,000
37,618,000
34,175,000
38,489,000
Goodwill
48,772,000
44,200,000
36,558,000
36,047,000
Net PPE
23,169,000
20,518,000
19,898,000
17,982,000
Accumulated Depreciation
-31,195,000
-28,250,000
-27,878,000
-25,552,000
Gross PPE
54,364,000
48,768,000
47,776,000
43,534,000
Construction In Progress
7,361,000
6,289,000
5,627,000
4,677,000
Machinery Furniture Equipment
32,873,000
29,444,000
28,979,000
26,603,000
Buildings And Improvements
13,429,000
12,317,000
12,375,000
11,470,000
Land And Improvements
701,000
718,000
795,000
784,000
Current Assets
55,624,000
55,893,000
53,495,000
55,294,000
Other Current Assets
3,701,000
Assets Held For Sale Current
0
5,830,000
Prepaid Assets
3,701,000
Inventory
14,191,000
12,444,000
11,181,000
10,268,000
Finished Goods
7,833,000
7,292,000
6,874,000
6,972,000
Work In Process
3,828,000
2,815,000
1,952,000
1,577,000
Raw Materials
2,530,000
2,337,000
2,355,000
1,719,000
Receivables
21,331,000
18,927,000
19,387,000
16,915,000
Other Receivables
4,153,000
4,085,000
4,514,000
2,876,000
Accounts Receivable
17,178,000
14,842,000
14,873,000
14,039,000
Allowance For Doubtful Accounts Receivable
-183,000
-167,000
-166,000
-169,000
Gross Accounts Receivable
17,361,000
15,009,000
15,039,000
14,208,000
Cash Cash Equivalents And Short Term Investments
20,102,000
24,522,000
22,927,000
22,281,000
Other Short Term Investments
393,000
417,000
1,068,000
9,392,000
Cash And Cash Equivalents
19,709,000
24,105,000
21,859,000
12,889,000
Cash Equivalents
16,410,000
21,187,000
18,519,000
9,198,000
Cash Financial
3,299,000
2,918,000
3,340,000
3,691,000
Cash Flow
2025
2024
2023
2022
Free Cash Flow
19,313,000
18,059,000
17,778,000
17,185,000
Repurchase Of Capital Stock
-5,953,000
-2,432,000
-5,054,000
-6,035,000
Repayment Of Debt
-14,087,000
-11,886,000
-24,524,000
-8,684,000
Issuance Of Debt
23,724,000
21,937,000
21,790,000
16,136,000
Issuance Of Capital Stock
0
0
4,241,000
0
Capital Expenditure
-5,217,000
-6,207,000
-5,013,000
-4,009,000
Interest Paid Supplemental Data
1,977,000
1,990,000
1,836,000
982,000
Income Tax Paid Supplemental Data
6,539,000
6,714,000
8,574,000
5,223,000
End Cash Position
19,709,000
24,105,000
21,859,000
14,127,000
Beginning Cash Position
24,105,000
21,859,000
14,127,000
14,487,000
Effect Of Exchange Rate Changes
201,000
-289,000
-112,000
-312,000
Changes In Cash
-4,597,000
2,535,000
7,844,000
-48,000
Financing Cash Flow
-5,539,000
-3,132,000
-15,825,000
-8,871,000
Cash Flow From Continuing Financing Activities
-5,539,000
-3,132,000
-15,825,000
-8,871,000
Net Other Financing Charges
-260,000
234,000
-1,602,000
65,000
Proceeds From Stock Option Exercised
3,418,000
838,000
1,094,000
1,329,000
Cash Dividends Paid
-12,381,000
-11,823,000
-11,770,000
-11,682,000
Common Stock Dividend Paid
-12,381,000
-11,823,000
-11,770,000
-11,682,000
Net Common Stock Issuance
-5,953,000
-2,432,000
-813,000
-6,035,000
Common Stock Payments
-5,953,000
-2,432,000
-5,054,000
-6,035,000
Common Stock Issuance
0
0
4,241,000
0
Net Issuance Payments Of Debt
9,637,000
10,051,000
-2,734,000
7,452,000
Net Short Term Debt Issuance
2,256,000
5,814,000
-1,183,000
9,584,000
Short Term Debt Payments
-12,330,000
-9,463,000
-22,973,000
-6,550,000
Short Term Debt Issuance
14,586,000
15,277,000
21,790,000
16,134,000
Net Long Term Debt Issuance
7,381,000
4,237,000
-1,551,000
-2,132,000
Long Term Debt Payments
-1,757,000
-2,423,000
-1,551,000
-2,134,000
Long Term Debt Issuance
9,138,000
6,660,000
0
2,000
Investing Cash Flow
-23,588,000
-18,599,000
878,000
-12,371,000
Cash Flow From Continuing Investing Activities
-23,588,000
-18,599,000
878,000
-12,371,000
Net Other Investing Changes
-1,571,000
2,018,000
-2,593,000
65,000
Net Investment Purchase And Sale
741,000
736,000
8,484,000
9,225,000
Sale Of Investment
1,661,000
2,462,000
19,390,000
41,609,000
Purchase Of Investment
-920,000
-1,726,000
-10,906,000
-32,384,000
Net Business Purchase And Sale
-17,541,000
-15,146,000
0
-17,652,000
Purchase Of Business
-17,541,000
-15,146,000
0
-17,652,000
Net Intangibles Purchase And Sale
-385,000
-1,783,000
-470,000
0
Purchase Of Intangibles
-385,000
-1,783,000
-470,000
0
Net PPE Purchase And Sale
-4,832,000
-4,424,000
-4,543,000
-4,009,000
Purchase Of PPE
-4,832,000
-4,424,000
-4,543,000
-4,009,000
Operating Cash Flow
24,530,000
24,266,000
22,791,000
21,194,000
Cash Flow From Continuing Operating Activities
24,530,000
24,266,000
22,791,000
21,194,000
Change In Working Capital
-12,718,000
1,837,000
2,507,000
-4,011,000
Change In Other Current Liabilities
-5,697,000
33,000
5,588,000
-1,979,000
Change In Other Current Assets
-6,167,000
1,717,000
-3,480,000
687,000
Change In Payables And Accrued Expense
2,377,000
1,621,000
2,346,000
1,098,000
Change In Inventory
-1,450,000
-1,128,000
-1,323,000
-2,527,000
Change In Receivables
-1,781,000
-406,000
-624,000
-1,290,000
Changes In Account Receivables
-1,781,000
-406,000
-624,000
-1,290,000
Other Non Cash Items
109,000
1,841,000
483,000
Stock Based Compensation
1,354,000
1,176,000
1,162,000
1,138,000
Provisionand Write Offof Assets
-1,000
11,000
0
-17,000
Asset Impairment Charge
204,000
405,000
1,295,000
1,216,000
Deferred Tax
1,538,000
-2,183,000
-4,194,000
-1,663,000
Deferred Income Tax
1,538,000
-2,183,000
-4,194,000
-1,663,000
Depreciation Amortization Depletion
7,503,000
7,339,000
7,486,000
6,970,000
Depreciation And Amortization
7,503,000
7,339,000
7,486,000
6,970,000
Operating Gains Losses
-263,000
-226,000
-21,101,000
-380,000
Gain Loss On Sale Of Business
-263,000
-226,000
-21,101,000
-380,000
Net Income From Continuing Operations
26,804,000
14,066,000
35,153,000
17,941,000
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $81.5B
Warren's Owner Earnings
$39.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$94.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.03x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $6.73 to $11.03 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+63.9% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $94.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $6.73 to $11.03 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what JNJ is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
13.9%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
Capital Expenditure % of Net Income
19.5%
44.1%
14.3%
22.3%
Repurchase of Capital Stock
-$6.0B
-$2.4B
-$5.1B
-$6.0B
Free Cash Flow
$19.3B▲
$18.1B▲
$17.8B▲
$17.2B•
Warren's Owner Earnings
$39.5B
$27.6B
$47.7B
$28.9B
Peers & Industry
No auto-detected peers for this industry. You can manually compare JNJ against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
JNJ (JNJ) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 67.9%. Operating margin: 27.2%. Net margin: 28.5%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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