Johnson & Johnson (JNJ) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Drug Manufacturers - General
Is Johnson & Johnson a safe investment right now?
Johnson & Johnson's Altman Z-Score of 3.82 places it in the safe zone. Our fair value estimate is $195.75 (Overvalued). Moat rating: 3.4/5 stars.
Could Johnson & Johnson go bankrupt? Altman Z-Score analysis
Z-Score of 3.82 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives JNJ's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0075 | 1.2 | 0.01 |
| B · Retained Earnings / Total Assets | RE / TA | 0 | 1.4 | 0.0 |
| C · EBIT / Total Assets | EBIT / TA | 0.1684 | 3.3 | 0.56 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.6307 | 0.6 | 2.78 |
| E · Revenue / Total Assets | Rev / TA | 0.4728 | 1.0 | 0.47 |
How has JNJ's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.69 | Safe |
| 2023 | 5.47 | Safe |
| 2024 | 3.86 | Safe |
| 2025 | 3.82 | Safe |
Source: Calculated from JNJ's latest 10-K filing on SEC EDGAR.
What is Johnson & Johnson actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $11.25 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $11.03 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $11.57 | 24 analysts consensus |
| Trailing P/E | 20.5x | Current market pricing |
| Fair P/E (β discount) | 17.4x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $252.42 (24 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Johnson & Johnson have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up JNJ's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is JNJ's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 16.9% | — |
| 2023 | 16.1% | Stable |
| 2024 | 16.1% | Stable |
| 2025 | 25.9% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Johnson & Johnson's dividend safe?
Can Johnson & Johnson afford its dividend?
Payout ratio is 46.6%. FCF covers the dividend 1.5x. 65 consecutive years of payments.
Johnson & Johnson's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $94.2B | $88.8B | $80.0B | Rising |
| Net Income | $26.8B | $14.1B | $17.9B | Rising |
| Free Cash Flow | $19.3B | $18.1B | $17.2B | Rising |
| Gross Margin | 67.9% | 69.1% | 69.2% | Stable |
Recent events that affect our JNJ analysis
JNJ earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.84. Revenue estimate: $25.00B. Our current Fair Value: $195.75 — a significant beat or miss could shift this estimate.
JNJ analyst consensus: 56% bullish (14 of 25 analysts)
5 Strong Buy, 9 Buy, 10 Hold, 0 Sell, 1 Strong Sell. Consensus target: $252.42 (11.6% upside). Compare with our independent Fair Value: $195.75.
JNJ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
JNJ beat EPS estimates by 0.8%
Reported EPS: $2.70 vs estimate $2.68. Earnings strength supports our Fair Value of $195.75 (13.4% below current price).
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ paid $1.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 46.6%.
JNJ filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
JNJ missed EPS estimates by 0.1%
Reported EPS: $2.46 vs estimate $2.46. Our Fair Value of $195.75 may face downward pressure if the trend continues.
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ paid $1.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 46.6%.
JNJ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
JNJ beat EPS estimates by 1.5%
Reported EPS: $2.80 vs estimate $2.76. Earnings strength supports our Fair Value of $195.75 (13.4% below current price).
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ paid $1.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 46.6%.
JNJ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
JNJ beat EPS estimates by 3.2%
Reported EPS: $2.77 vs estimate $2.68. Earnings strength supports our Fair Value of $195.75 (13.4% below current price).
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ paid $1.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 46.6%.
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
JNJ beat EPS estimates by 7.4%
Reported EPS: $2.77 vs estimate $2.58. Earnings strength supports our Fair Value of $195.75 (13.4% below current price).
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
JNJ paid $1.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 46.6%.
JNJ filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
JNJ beat EPS estimates by 1.4%
Reported EPS: $2.04 vs estimate $2.01. Earnings strength supports our Fair Value of $195.75 (13.4% below current price).
JNJ filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Johnson & Johnson
What is Johnson & Johnson stock price today?
Johnson & Johnson (JNJ) stock price is $226.10 as of the latest market close, traded on the NYSE exchange.
What does Johnson & Johnson do?
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.
What is Johnson & Johnson market cap?
Johnson & Johnson has a market capitalization of $544.88B, classifying it as a mega-cap stock in the Healthcare sector.
What sector and industry is JNJ in?
Johnson & Johnson operates in the Healthcare sector, specifically within the Drug Manufacturers - General industry. It trades on the NYSE under the ticker symbol JNJ.
Is JNJ stock overvalued or undervalued?
Based on our valuation model, Johnson & Johnson trades 15.5% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $195.75
- Current Price: $226.10
- Valuation Zone: Overvalued
What is JNJ stock forecast and analyst target price?
Based on 24 Wall Street analysts, the consensus price target for Johnson & Johnson is $252.42, implying upside of 11.6% from the current price.
- Analyst High Target: $285.00
- Analyst Low Target: $155.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Johnson & Johnson revenue and earnings growing?
Here are the analyst consensus growth estimates for Johnson & Johnson:
- Revenue growth (current year est.): 7.1%
- EPS growth (current year est.): 7.2%
- Revenue growth (next year est.): 6.3%
- EPS growth (next year est.): 9.8%
What are Johnson & Johnson's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $94.2B | Rising |
| Net Income | $26.8B | Rising |
| Free Cash Flow | $19.3B | Rising |
| Gross Margin | 67.9% | Stable |
What is JNJ's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.5x
- Forward P/E (next 12 months est.): 17.8x
- FairValueLabs Fair P/E: 17.4x
How volatile is JNJ stock?
Johnson & Johnson has a beta of 0.33, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Johnson & Johnson have?
Johnson & Johnson's balance sheet shows:
- Total Cash: $20.10B
- Total Debt: $49.33B
- Net Cash Position: $-29.23B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
Does Johnson & Johnson pay a dividend, and is it safe?
Yes, Johnson & Johnson pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.3%
- Payout Ratio: 46.6%
- Consecutive Years Paid: 65
- 5-Year Dividend Growth: -20.9%
- FairValueLabs Safety Grade: A
Is Johnson & Johnson at risk of going bankrupt?
Johnson & Johnson's Altman Z-Score is 3.82, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Johnson & Johnson have a durable competitive advantage?
Johnson & Johnson scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
How do I buy JNJ stock?
JNJ shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol JNJ
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is JNJ a value stock or speculative?
FairValueLabs classifies Johnson & Johnson as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Johnson & Johnson?
The current CEO of Johnson & Johnson is Mr. Joaquin Duato.
What is JNJ's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $11.03
- Forward EPS (next 12 months est.): $12.71
- Analyst consensus EPS (this year): $11.57
- Analyst consensus EPS (next year): $12.71
Other Healthcare companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
JNJ analysis methodology: How we calculate fair value, Z-Scores, and moat ratings