NYSE · Healthcare

Johnson & Johnson

JNJ · Drug Manufacturers - General

$224.15

▼ -3.04 (-1.34%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Johnson & Johnson at $224.15.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 67.9%

Operating Margin 27.2%

Net Income Margin 28.5%

Fin. Health C

Years to Pay Off Debt 1.8 yrs

Working Capital vs Long-Term Debt -$37.9B

Working Capital $1.5B

Valuation F

Margin of Safety 0.0%

Price-to-Book 6.62x

Cash Flow A

Free Cash Flow $19.3B

CapEx % of Net Income 19.5%

Owner Earnings $39.5B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $539.6B

Enterprise Value $579.8B

P/E (TTM) 25.97

Dividend Yield 2.29%

Exchange NYSE

Key Margins

Gross Profit 67.9%

Operating Margin 27.2%

Net Margin 28.5%

Company Info

Sector Healthcare

Industry Drug Manufacturers - General

Employees 138200

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Johnson & Johnson at $224.15.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $224.15, the stock trades at a 144% premium to its Graham Number of $91.69. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Johnson & Johnson

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. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment provides a portfolio of products used in the surgery, orthopedic, cardiovascular, and vision fields distributed through wholesalers, hospitals and retailers, and used in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. This segment also offers products and enabling technologies that support joint reconstruction, trauma, spine, sports related injuries, and others, as well as open, laparoscopic, and robotic surgical procedures; instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies; breast aesthetics and reconstruction; contact lenses under the ACUVUE brand; intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures under the TECNIS brand. The company was founded in 1886 and is based in New Brunswick, New Jersey.

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

These metrics estimate what Johnson & Johnson is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$91.69

Margin of Safety

Market Cap ÷ Company Value

1.48

P/B Ratio

6.62

Warren's Owner Earnings

$39.5B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$94.2B

vs > $1.5B revenue

❌ Strong Financial Condition

1.03x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.29%

vs Uninterrupted dividends

✅ Earnings Growth

+63.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

26.0x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

6.62x P/B (P/E×P/B: 171.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-25.77

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$118.14

Per share, no-growth floor. Compare to current price.

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 Drug Manufacturers - General. 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

Capital Allocation & Alignment

Insider Ownership

0.06%

Low — management has little skin in the game

Return on Equity (ROE)

32.9%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

13.5%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$6.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+30.8% YoY

Debt is growing — management is leveraging up

Leadership Team

Joaquin Duato

CEO & Chairman

Age 62

Pay: $6,499,931

0.024% of net income

Joseph James Wolk CPA

Executive VP & CFO

Age 58

Pay: $3,216,428

0.012% of net income

Jennifer Taubert

Executive VP & Worldwide Chairman of Innovative Medicine

Age 61

Pay: $3,313,021

0.012% of net income

John Reed , Ph.

Executive Vice President of Innovative Medicine and R&D

Age 67

Pay: $3,165,384

0.012% of net income

Timothy Schmid

Executive VP & Worldwide Chairman of MedTech

Age 55

Pay: $2,538,167

0.009% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.98%	240,349,660
Blackrock Inc.	8.67%	208,781,159
State Street Corporation	5.56%	133,869,843
JPMORGAN CHASE & CO	2.43%	58,558,238
Geode Capital Management, LLC	2.41%	57,953,747
Morgan Stanley	1.92%	46,325,589
NORGES BANK	1.39%	33,459,884
State Farm Mutual Automobile Insurance Co	1.31%	31,590,952

Risk Analysis

Beta (Market Risk)

0.26

Low volatility — more stable than the market

Short Interest

0.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.68x

Conservative balance sheet — low financial risk

Current Ratio

1.02x

Adequate liquidity

52-Week Price Range

Low: $146.12 Current: $224.15 High: $251.71

Currently at 74% of 52-week range

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Johnson & Johnson

Metric Explanations

Full Graham Analysis

About Johnson & Johnson

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

Cash Flow Analysis

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis