Johnson & Johnson
[JNJ]
NYSE
MVPro™ Score: 61/100
Last Earnings: 21 Oct 2025
[JNJ]
NYSE
MVPro™ Score: 61/100
Last Earnings: 21 Oct 2025
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| Capitalization (mln USD) | 410,480 |
| Revenue (mln USD) | 23,743 |
| EBITDA (mln USD) | 8,742 |
| Net Income (mln USD) | 5,537 |
| Net Margin | 23.32% |
| EPS Ratio (TTM, USD) | 9.37 |
| P/E Ratio (TTM) | 18.11 |
| P/S Ratio (TTM) | 4.08 |
| D/E Ratio | 1.46 |
| EV/EBITDA (TTM) | 12.74 |
| CAPEX (Q/Q) | -50.68% |
| Dividend Yield | 3.11% |
Revenue, EBITDA & Net Income
Company Overview
Johnson & Johnson is a multinational healthcare company founded in 1886 in New Brunswick, New Jersey, where it continues to be headquartered today. With a history spanning over 135 years, the company has grown into one of the world’s most recognised names in pharmaceuticals, medical devices, and consumer health products. Its global presence covers more than 60 countries, serving both developed and emerging markets.
The company operates through three primary segments: pharmaceutical, medtech, and consumer health, though the consumer division was spun off as Kenvue in 2023. Johnson & Johnson is known for household brands such as Tylenol, Band-Aid, and Listerine, as well as advanced medical technologies and innovative therapies in oncology, immunology, and neuroscience. The company is led by CEO Joaquin Duato, who took over the role in 2022 and continues to drive the firm’s strategic focus on innovation and global health leadership.
Johnson & Johnson’s mission is to blend heart, science, and ingenuity to profoundly change the trajectory of health for humanity. The company has a strong commitment to ESG principles, with initiatives aimed at expanding healthcare access, achieving carbon neutrality, and strengthening ethical governance. Through its long-standing Credo values and emphasis on corporate responsibility, Johnson & Johnson strives to build a sustainable and inclusive healthcare future.
🟡 P/E (Price to Earnings, TTM)
Price-to-earnings (P/E) ratio for the most recent quarter is 16.3, compared to 18.3 in the previous quarter, with a longer-term trend value of 20.8. This decline in the P/E ratio may indicate a shift in market sentiment, where investors are placing a lower premium on future earnings growth. A falling P/E ratio could be driven by slowing revenue growth, increased risk perception, or improved earnings performance that is outpacing stock price growth.
P/E Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (TTM)
P/E Ratio
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🟢 EPS (Earnings Per Share, TTM)
Johnson Johnson's earnings per share (EPS) for the most recent quarter is 9.37 USD (+4.1%), compared to 9.00 USD in the previous quarter, with a longer-term trend value of 12.10 USD. This quarterly increase in EPS suggests improved profitability and operational efficiency.
EPS
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (TTM, USD)
EPS
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🟡 P/B (Price to Book)
Price-to-book (P/B) ratio for the most recent quarter stands at 4.71 (-7.7%), compared to 5.10 in the previous quarter, with a long-term trend value of 4.77. This decline in the P/B ratio may indicate a more conservative market stance on the company’s asset valuation, potentially influenced by shifting investor sentiment, changes in financial fundamentals, or broader economic conditions.
P/B Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
P/B Ratio
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🟡 EBIT
EBIT for Johnson Johnson in the most recent quarter is 6,491 million USD, compared to 13,631 million USD in the previous quarter, with a long-term trend value of 4,660 million USD. This decline may indicate increased costs, lower revenue, or market challenges impacting profitability, requiring strategic adjustments.
EBIT
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
EBIT
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🟡 Risk Assessment
Below is a factual risk assessment for Johnson & Johnson, highlighting key risks that may affect the company’s financial health, operations, and long-term performance.
Market Risk
Johnson & Johnson operates in a competitive and evolving global healthcare market, facing challenges from both generic drug manufacturers and emerging biotechnology firms. Market dynamics, including pricing pressures and changes in patient demand, can impact product sales and profit margins. Additionally, economic fluctuations and global health trends may affect consumer and institutional spending on healthcare products.
Financial Risk
While the company maintains a strong financial position, it is exposed to currency exchange fluctuations due to its extensive international operations. Large-scale litigation and product liability claims, particularly in the United States, may result in significant financial settlements or legal expenses. Any disruption in cash flow from underperforming product segments could affect dividend policies and R&D investment.
Operational Risk
Johnson & Johnson relies on complex supply chains, global manufacturing facilities, and strict quality control processes, which may be disrupted by natural disasters, pandemics, or supplier failures. The company is also exposed to reputational damage from product recalls or safety concerns. Dependence on high-cost innovation and clinical trial success introduces additional execution risk.
Regulatory Risk
The company is subject to a wide range of global regulatory frameworks concerning product safety, drug approval, marketing, and data protection. Delays in regulatory approvals or changes in healthcare policy and pricing regulations can impact time-to-market and profitability. Non-compliance or adverse rulings may lead to fines, restricted sales, or product withdrawals.
Overall Risk Assessment
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🟡 Piotroski F-Score Analysis
Piotroski F-Score analysis is a robust methodology designed to assess the financial strength and operational efficiency of companies, providing valuable insights for investment decision-making.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
| Previous TTM | Current TTM | Score | |
| Net Income | 38,018 | 22,661 | 1 |
| ROA | 22.15% | 12.17% | 1 |
| Net Operating Cash Flow | -1,127 | 13,095 | 1 |
| OCF > Net Income | -14,827 | 2,122 | 1 |
| Long-Term Debt | 108,650 | 139,530 | 0 |
| Current Ratio | 1.07 | 1.01 | 0 |
| New Shares Issued (mln) | 2,422 | 2,419 | 1 |
| Gross Margin | 69.06% | 67.92% | 0 |
| Total Asset Turnover Ratio | 0.5 | 0.49 | 0 |
| Piotroski F-Score | 5/9 |
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🟢 Altman Z-Score Analysis
Altman Z-Score is a widely recognised financial metric used to evaluate the risk of bankruptcy for companies. It is particularly relevant for assessing the creditworthiness of manufacturing and industrial companies but has also been adapted for other industries.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
| Q2 25 | |||
| Altman Z-Score (TTM) | 7.85 | ||
| 0 | Distress | 1.8 | Grey | 2.99 | Safe | 4 |
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
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🔴 Key Assets Components
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
As of last quarter the company reported total assets of 192,890 million USD, representing an increase of 6.5% compared to the previous year the same quarter 181,088 million USD. The largest contributor to this change in current assets was Receivables, which grew by 13.0% to 17,846 million USD from 15,794 million USD.
Assets
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
| Q2 24 | Q2 25 | Change (%) | |
| Cash & Short-Term Inv | 25,475 | 18,880 | -25.89% |
| Inventory | 12,169 | 13,412 | 10.21% |
| Receivables | 15,794 | 17,846 | 12.99% |
| Total Current Assets | 57,817 | 54,498 | -5.74% |
| Property and Equipment | 19,748 | 21,949 | 11.15% |
| Goodwill, Intangibles | 83,975 | 97,952 | 16.64% |
| Other Long-Term Assets | 10,544 | 12,189 | 15.60% |
| Total Assets | 181,088 | 192,890 | 6.52% |
Assets
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🔴 Key Liabilities & Equity
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Total current liabilities increased by 0.5%, indicating a potential growth in operational activities. This change may affect the company's ability to manage its working capital efficiently. Long-term debt increased by 24.0%, suggesting a rise in long-term obligations. This shift could have implications for the Johnson Johnson's financing costs and overall debt strategy.
Liabilities & Equity
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
| Q2 24 | Q2 25 | Change (%) | |
| Accounts Payable | 8,848 | 9,464 | 6.96% |
| Accrued Expenses, Other | 28,078 | 28,227 | 0.53% |
| Total Current Liabilities | 53,933 | 54,180 | 0.46% |
| Long-term Lease | 0 | 0 | 0.00% |
| Long-term Debt | 31,636 | 39,235 | 24.02% |
| Total Liabilities | 109,550 | 114,916 | 4.90% |
| Shareholders’ Equity | 71,538 | 78,473 | 9.69% |
Liabilities & Equity
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🟢 Income Statement Analysis
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
As of Q2 25, Johnson Johnson reported a revenue of 23,743 million USD, marking an increase of 5.8% compared to the previous year to 22,447 million USD. Operating expenses decreased to 9,624 million USD, down by 20.9% year-on-year from 12,170 million USD.
Revenue & Net Income
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
| Q2 24 | Q2 25 | Change (%) | |
| Revenue | 22,447 | 23,743 | 5.77% |
| Operating Expenses | 12,170 | 9,624 | -20.92% |
| Operating Income | 5,748 | 6,491 | 12.93% |
| Net Income | 4,686 | 5,537 | 18.16% |
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Revenue & Net Income
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🟡 Cash Flow Analysis
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
The company’s cash flow performance over the year demonstrates varied trends across key categories. Net operating cash flows increased by 14.1% from 3,657 million USD to 4,174 million USD, reflecting stronger cash generation from core business activities. Net investing cash flows increased by 36.0% from -464 million USD to -297 million USD, indicating reduced expenditure on investments, potentially related to strategic initiatives.
Operating Cash Flow
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
| Q2 24 | Q2 25 | Change (%) | |
| Net Operating Cash Flows | 3,657 | 4,174 | 14.14% |
| Net Investing Cash Flows | -464 | -297 | 35.99% |
| Net Financing Cash Flows | 546 | 10,422 | 1808.79% |
| Net Cash Flow, Equivalents | 3,739 | 14,299 | 282.43% |
Operating Cash Flow
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🟡 EBITDA
Johnson Johnson's EBITDA for the most recent quarter is 8,742 milion USD (-45.2%), compared to 15,939 milion USD in the previous quarter, with a long-term trend value of 6,868 milion USD. This decline in EBITDA may suggest increased operating costs, lower revenue generation, or other external factors affecting profitability.
EBITDA
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
EBITDA
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🟡 Net Income
Net income for the most recent quarter is 5,537 milion USD (-49.7%), compared to 10,999 milion USD in the previous quarter, with a long-term trend value of 9,890 milion USD. This decline in net income may indicate increased operational costs, lower revenue generation, or external market challenges affecting profitability.
Net Income
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Net Income
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🟢 ROE (Return on Equity, %) ★ Buffett's Key Metric
Johnson Johnson's return on equity (ROE) for the most recent quarter is 28.9%, compared to 27.9% in the previous quarter, with a long-term trend value of 38.3%. This increase in ROE indicates improved profitability and more efficient use of shareholders' equity to generate earnings.
ROE Indicator
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
ROE Indicator
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🟢 ROA (Return on Assets, %)
Return on assets (ROA) for the most recent quarter is 11.7%, compared to 11.3% in the previous quarter, with a long-term trend value of 16.2%. This increase in ROA indicates improved efficiency in utilizing company assets to generate profits. The higher return suggests stronger operational performance and effective resource allocation.
ROA Indicator
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
ROA Indicator
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🟡 Operating Margin (%) ★ Buffett's Key Metric
Johnson Johnson's operating margin for the most recent quarter is 27.3%, compared to 62.3% in the previous quarter, with a long-term trend value of 20.9%. This decline in operating margin may indicate increased production or operational costs, pricing pressures, or lower revenue retention. A reduction in margin suggests that certain cost components are weighing on profitability, potentially requiring adjustments in expense management.
Operating Margin
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
Operating Margin
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🟡 Net Margin (%) ★ Buffett's Key Metric
Net margin for the most recent quarter is 23.3%, compared to 50.2% in the previous quarter, with a long-term trend value of 43.0%. This decline in net margin may indicate rising operational costs, pricing pressures, or changes in revenue mix that are affecting overall profitability. A lower net margin suggests that expenses have grown at a faster rate than revenue, potentially requiring adjustments in cost management or pricing strategy.
Net Margin
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
Net Margin
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🔴 Long-Term Debt & EBITDA
The current long-term debt is 39,235 million USD, and EBITDA is 8,742 million USD. The long-term debt to EBITDA ratio for the most recent quarter is 448.8%, compared to 240.6% in the previous quarter, with a long-term trend value of 546.6%. This increase in the long-term debt to EBITDA ratio may indicate higher leverage, reduced earnings capacity, or an increase in long-term debt obligations. A rising ratio suggests that Johnson Johnson may be taking on additional debt or facing challenges in maintaining EBITDA growth.
Long-Term Debt to EBITDA Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
The ratio now exceeds the 400% threshold, signaling potential financial concerns that may require strategic adjustments to debt management. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & EBITDA
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Long-Term Debt to EBITDA Ratio
The ratio now exceeds the 400% threshold, signaling potential financial concerns that may require strategic adjustments to debt management. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & EBITDA
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🟢 Long-Term Debt & Assets
The current long-term debt is 39,235 million USD, and total assets are 192,890 million USD, resulting in a debt ratio of 20.3%. This increase in the long-term debt-to-assets ratio may indicate a higher dependency on long-term debt or a decrease in total assets, potentially leading to increased financial risk. A rising ratio suggests that Johnson Johnson may be taking on additional liabilities or experiencing challenges in maintaining asset growth.
Long-Term Debt to Assets Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Long-Term Debt to Assets Ratio
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
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🟢 Long-Term Debt & Equity ★ Buffett's Key Metric
The current long-term debt is 39,235 million USD, while Total Equity stands at 78,473 million USD, resulting in a debt-to-equity ratio of 50.0%. This increase in the long-term debt-to-equity ratio may indicate a greater reliance on leverage, which could increase financial risk. A rising ratio suggests that Johnson Johnson may be taking on additional debt obligations or experiencing challenges in equity growth, which could impact long-term financial stability.
Long-Term Debt to Equity Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Long-Term Debt to Equity Ratio
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
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🟡 Equity to Assets
The current equity is 78,473 million USD, while total assets stand at 192,890 million USD, resulting in an equity-to-assets ratio of 40.7%. This increase in the equity-to-assets ratio indicates a strengthening financial position, as the company is relying more on its own capital rather than external debt. The rise suggests higher retained earnings, new equity issuance, or asset appreciation, all of which contribute to long-term financial stability.
Equity to Assets Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (%)
Although the ratio has increased, it is still within the monitoring range 40%–50%, suggesting that while financial leverage is moderate, continued assessment is recommended. A rising equity-to-assets ratio is generally a positive sign for investors, as it indicates lower financial risk and improved capital structure.
Equity & Assets
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Equity to Assets Ratio
Although the ratio has increased, it is still within the monitoring range 40%–50%, suggesting that while financial leverage is moderate, continued assessment is recommended. A rising equity-to-assets ratio is generally a positive sign for investors, as it indicates lower financial risk and improved capital structure.
Equity & Assets
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🔴 Quick Ratio
The quick ratio for Johnson Johnson is 0.76, compared to 1.03 in the previous quarter, with a long-term trend value of 0.76. This decline in the quick ratio may indicate lower liquidity, reduced cash reserves, or an increase in short-term liabilities. The ratio has now fallen below 0.8, signalling potential liquidity concerns that may require adjustments in working capital management or access to additional short-term funding.
Quick Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
Quick Ratio
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🟢 Current Ratio
The current ratio for Johnson Johnson is 1.01, compared to 1.26 in the previous quarter, with a long-term trend value of 1.01. This decline in the current ratio may indicate a higher reliance on short-term liabilities, reduced cash flow, or increased working capital constraints. Despite the decrease, the ratio remains within the 1.0–2.0 range, which is still considered healthy, though further monitoring of working capital efficiency is advisable.
Current Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
Current Ratio
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🟡 Net Working Capital
The net working capital (NWC) for Johnson Johnson in the most recent quarter is 318 million USD, compared to 14,648 million USD in the previous quarter, with a long-term trend value of 310 million USD.
Net Working Capital
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Net Working Capital
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🔴 Inventory Turnover Ratio
The inventory turnover ratio for Johnson Johnson in the most recent quarter is 2.17, compared to 2.11 in the previous quarter. This increase in inventory turnover indicates that Johnson Johnson is selling goods more rapidly, suggesting strong demand, efficient inventory management, and optimized supply chain processes. The turnover ratio has fallen below the 3.0, indicating low inventory turnover, which may result in excessive stockpiling, potential obsolescence, or weak demand. This situation requires closer monitoring to prevent liquidity constraints.
Inventory Turnover Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
Inventory Turnover Ratio
🔴 Asset Turnover Ratio
The assets turnover ratio for Johnson Johnson in the most recent quarter is 0.47, compared to 0.46 in the previous quarter. This increase in the assets turnover ratio indicates that Johnson Johnson is utilizing its assets more efficiently to generate revenue. A rising ratio often reflects improved sales performance, better assets utilization, or operational efficiency. The ratio has fallen below the 1.0, suggesting that Johnson Johnson may have a high level of assets relative to revenue generation. This could indicate underutilized resources or the need for improved asset efficiency.
Assets Turnover Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
Assets Turnover Ratio
🔴 Book Value / Share
The book value per share (BVPS) is a key valuation metric that represents the equity value per outstanding share. Calculated by dividing total book value by the number of shares, it helps assess whether a stock trades above or below its book value.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (USD)
Book Value per Share Valuation
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (USD, generated on 24 July 2025)
| Q2 24 | Q2 25 | Change (%) | |
| Book Value / Share | 29.54 | 32.44 | 9.82 % |
Book Value per Share Valuation
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🟢 Graham Method
The intrinsic value of Johnson Johnson’s stock is calculated using Benjamin Graham’s formula, which takes into account the current earnings per share (EPS) and an assumed growth rate (g), providing a simplified yet insightful perspective on a company’s value.
Benjamin Graham Valuation
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (USD, generated on 24 July 2025)
Benjamin Graham Valuation
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🟡 Discounted Cash Flow ★ Buffett's Key Metric
The discounted cash flow (DCF) method is used to estimate Johnson Johnson’s intrinsic value by projecting future cash flows and discounting them to their present value. This approach considers the company’s potential to generate cash flows in the future, taking into account the time value of money and associated risks.
The terminal value represents the value of Johnson Johnson’s cash flows beyond the five-year forecast horizon. It is calculated using the Gordon Growth Model, assuming a perpetual growth rate of 3.0% and WACC of 10.0%. The calculated terminal value is 412,898 million USD.
Total Intrinsic Value Calculations
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Assuming 2,419 million shares outstanding, the intrinsic value per share is approximately 143.12 USD. The current market price of Johnson Johnson’s stock is 169.69 USD. Discounted cash flow valuation indicates that the stock is 18.6% overvalued, trading above its intrinsic value.
Discounted Cash Flow Valuation
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (USD, generated on 24 July 2025)
| Value | |
| Present Value of FCFs | 89,836 |
| Present Value of Terminal Value | 256,377 |
| Total Intrinsic Value | 346,213 |
Discounted Cash Flow Valuation
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🟡 Assets Correlation
The Pearson correlation analysis for Johnson Johnson examines the relationship between share price and key financial indicators. Gross profit has a correlation of 0.68, which suggests a moderate correlation, showing that while profitability influences stock price, other factors also play a role. Operating income is correlated at 0.24, suggesting a weak relationship with share price fluctuations.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports
Current liabilities are correlated at 0.89, implying that short-term obligations are closely monitored by investors, influencing stock valuation. Total assets have a correlation of 0.97, confirming a strong relationship between asset growth and market performance.
Key Financial Indicators Growth Dynamics
Source: MarketVectors.Pro, Johnson Johnson Financial Reports, Index=100 on Q4 10
| Pearson Correlation | |
| Share Price | 1 |
| Gross Profit | 0.68 |
| Operating Income | 0.24 |
| Current Liabilities | 0.89 |
| Total Assets | 0.97 |
Key Financial Indicators Growth Dynamics
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🟡 FCF Margin Scenarios
• Optimistic Scenario: 29%, driven by operational efficiencies and cost optimisation.
• Base Case: 22% of revenue, consistent with historical trends.
• Pessimistic Scenario: 16%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
An approximately 7-percentage-point increase in the FCF margin to 29%, results in an additional 5,911 milion USD in FCF, highlighting the critical role of operational efficiency. Conversely, a decrease to 16% reduces FCF by 5,871 milion USD, illustrating the significant impact of profitability on cash flow generation.
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
• Base Case: 22% of revenue, consistent with historical trends.
• Pessimistic Scenario: 16%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
| FCF Margin (%) | Revenue TTM | FCF TTM | Difference | |
| Optimistic | 29% | 90,627 | 26,282 | 5,911 |
| Base Case | 22% | 90,627 | 20,371 | – |
| Pessimistic | 16% | 90,627 | 14,500 | -5,871 |
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
🟡 Operating Costs Scenarios
• Optimistic Scenario: 68%, reflecting enhanced efficiency and lower costs.
• Base Case: 70% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 72%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Reducing operational costs to 68% of revenue leads to a 1,654 milion USD increase in operating profit, emphasising the significance of cost control in enhancing margins. Increasing costs to 72% of revenue results in a 1,971 milion USD decline in operating profit, highlighting the sensitivity of profitability to rising expenses.
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
• Base Case: 70% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 72%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
| Operating Costs (%) | Revenue TTM | Operating Profit | Difference | |
| Optimistic | 68% | 90,627 | 29,001 | 1,654 |
| Base Case | 70% | 90,627 | 27,347 | – |
| Pessimistic | 72% | 90,627 | 25,376 | -1,971 |
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
🟡 Revenue Growth Scenarios
Optimistic Scenario: Projected to grow by 3% annually, driven by:
• Robust macroeconomic conditions.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 2% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 2% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD, TTM)
The projected revenue for the next twelve months varies depending on the scenario. Under the optimistic scenario, revenue is expected to increase by 3% to 93,234 million USD, reflecting strong market growth and operational efficiency. In the base case scenario, revenue is forecasted to grow by 2% to 92,800 million USD, assuming stable economic conditions and consistent business expansion. However, under the pessimistic scenario, revenue is projected to increase by 2% to 92,365 million USD, reflecting potential economic slowdowns or adverse market conditions.
Projected Revenues Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
The variation between projected scenarios highlights the Johnson Johnson's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 2% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 2% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
| Revenue | Net Income | Revenue (Next) | Net Income (Next) | |
| Optimistic | 90,627 | 22,661 | 93,234 | 23,313 |
| Base Case | 90,627 | 22,661 | 92,800 | 23,204 |
| Pessimistic | 90,627 | 22,661 | 92,365 | 23,096 |
Projected Revenues Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
The variation between projected scenarios highlights the Johnson Johnson's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
🟡 Net Income Growth Scenarios
The projected net income for the next twelve months varies depending on the scenario. Under the optimistic scenario, net income is expected to increase by 3% to 23,313 million USD, reflecting improved profitability and strong financial performance. In the base case scenario, net income is forecasted to grow by 2% to 23,204 million USD, assuming stable market conditions and effective cost management. However, under the pessimistic scenario, net income is projected to increase by 2% to 23,096 million USD, reflecting potential challenges such as higher operational costs or slowing revenue growth.
Projected Net Income Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Johnson Johnson is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
Projected Net Income Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Johnson Johnson is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
🟡 Financial Performance Overview
Johnson Johnson demonstrated stronger financial performance in the most recent period, reflecting strong revenue growth, operational efficiency, and profitability improvements revenue increased by 5.8% year-over-year, reaching 23,743 million USD, supported by strong sales performance across all key markets. At the same time, EBITDA grew by 6.7% year-over-year, totaling 8,742 million USD, reflecting increased operational costs and margin pressures.
Revenue & Net Income
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Notably, net income surged by 18.2% year-over-year, reaching 5,537 million USD, negatively impacting Johnson Johnson's net margin, which expanded to 23.3%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Revenue & Net Income
Notably, net income surged by 18.2% year-over-year, reaching 5,537 million USD, negatively impacting Johnson Johnson's net margin, which expanded to 23.3%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Key Performance Indicators (KPIs)
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (YoY)
Valuation & Market Position
Johnson Johnson’s valuation metrics indicate a strengthened financial standing. The EV to EBITDA (TTM) ratio currently stands at 12.74, decreasing from 13.20, reflecting a dual shift – rising operational performance and declining market valuation. This indicates a balanced valuation, with stable investor perception
EV to EBITDA Ratio
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (TTM)
The EV to EBITDA trendline illustrates Johnson Johnson’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (TTM)
Meanwhile, the P/E (Price to Earnings) ratio has declined to 16.3, down from 26.1 a year ago, potentially signaling a more balanced market outlook on Johnson Johnson’s earnings potential. The P/S (Price to Sales) ratio has declined to 4.08, compared to 4.38 a year ago, suggesting a more conservative valuation stance among investors.
| Change (%) | |
| Revenue Growth | 5.8% |
| EBITDA Growth | 6.7% |
| Net Income Growth | 18.2% |
| Net Margin | 23.3% |
| EPS | -40.3% |
EV to EBITDA Ratio
The EV to EBITDA trendline illustrates Johnson Johnson’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
| Ratio (TTM) | |
| EV/EBITDA | 12.74 |
| P/E Ratio | 18.11 |
| P/S Ratio | 4.08 |
Cash Flow & Liquidity ★ Buffett's Key Metric
Johnson Johnson is experiencing a weakened cash flow position, reflecting potential liquidity challenges. The decline in cash flow may indicate increased operational costs or reduced cash inflows, requiring closer financial monitoring and strategic adjustments.
• Free Cash Flow (FCF) – totaled 3,379 million USD, indicating a decline in available cash resources, requiring enhanced financial oversight.
• Net Operating Cash Flow – declined by 1261.9% year-over-year, reaching 13,095 million USD, suggesting weaker cash inflows from operating activities.
• Long-term debt – increased by 28.4%, which may lead to higher financial leverage and increased interest obligations.
Johnson Johnson’s ability to generate substantial cash flow while increasing debt reinforces its financial flexibility, though ongoing financial management is essential to sustain long-term growth and strategic investments.
Free Cash Flow
Source: MarketVectors.Pro, Johnson Johnson Financial Reports (million USD)
Johnson Johnson's financial performance in the most recent quarter shows that EBITDA reached 8,742 million USD, indicating a potential slowdown in operational profitability. The company's return on equity (ROE) is 28.9%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 50.0%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 0.76, highlighting tightened liquidity conditions and the need for cautious cash management. The EV/EBITDA ratio is currently 12.74x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Johnson Johnson’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Johnson Johnson’s long-term prospects remain positive.
Free Cash Flow
Johnson Johnson's financial performance in the most recent quarter shows that EBITDA reached 8,742 million USD, indicating a potential slowdown in operational profitability. The company's return on equity (ROE) is 28.9%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 50.0%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 0.76, highlighting tightened liquidity conditions and the need for cautious cash management. The EV/EBITDA ratio is currently 12.74x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Johnson Johnson’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Johnson Johnson’s long-term prospects remain positive.
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