Skip to main content

Johnson & Johnson (JNJ) Stock

Johnson & Johnson Stock Details, Movements and Public Alerts

Johnson & Johnson Stock: The Pharmaceutical Powerhouse Reborn After Historic Spinoff

Explore how Johnson & Johnson's $380 billion pharmaceutical and medical technology empire emerged stronger after spinning off consumer brands to Kenvue. With CEO Joaquin Duato steering toward oncology leadership and surgical innovation, discover why this 62-year Dividend King offers compelling value at just 15x earnings despite facing $9 billion in talc settlements.

  • Dividend Aristocrat:62 consecutive years of dividend increases, 3% yield, unmatched stability
  • Pharma Powerhouse:$100B revenue split between high-margin pharmaceuticals and innovative MedTech
  • Transformation Complete:Post-Kenvue spinoff creates focused biopharma leader with cleaner growth profile

Market Cap

$366.71B

52-Week High

$168.55

-2.90% from high

52-Week Low

$138.38

+18.28% from low

Avg Daily Volume

9,712,277

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

16.95

Near market average

Forward P/E

14.41

Earnings expected to grow

PEG Ratio

1.04

Reasonably valued

Price to Book

4.70

EV/EBITDA

10.96

EPS (TTM)

$8.99

Price to Sales

4.11

Beta

0.41

Less volatile than market

How is JNJ valued relative to its earnings and growth?
Johnson & Johnson trades at a P/E ratio of 16.95, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 14.41 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.04 indicates reasonable value when growth is considered.
What is JNJ's risk profile compared to the market?
With a beta of 0.41, Johnson & Johnson is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.70 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

24.40%

Operating Margin

29.40%

Return on Equity

29.40%

Return on Assets

7.77%

Revenue Growth (YoY)

2.40%

Earnings Growth (YoY)

238.80%

How profitable and efficient is JNJ's business model?
Johnson & Johnson achieves a profit margin of 24.40%, meaning it retains $24.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 29.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 29.40% and ROA at 7.77%, the company generates strong returns on invested capital.
What are JNJ's recent growth trends?
Johnson & Johnson's revenue grew by 2.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 238.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against PHARMACEUTICAL PREPARATIONS industry averages for proper context.

Dividend Information

Dividend Per Share

$4.96

Dividend Yield

3.41%

Ex-Dividend Date

5/27/2025

Dividend Date

6/10/2025

What dividend income can investors expect from JNJ?
Johnson & Johnson offers a dividend yield of 3.41%, paying $4.96 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/27/2025.
How reliable is JNJ's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Johnson & Johnson pays $4.96 per share in dividends against earnings of $8.99 per share, resulting in a payout ratio of 55.17%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 6/10/2025.

Company Size & Market

Shares Outstanding

2.41B

Book Value/Share

$32.47

Asset Type

Common Stock

What is JNJ's market capitalization and position?
Johnson & Johnson has a market capitalization of $366.71B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 2.41B shares outstanding, the company's ownership is widely distributed. As a major player in the PHARMACEUTICAL PREPARATIONS industry, it competes with other firms in this sector.
How does JNJ's price compare to its book value?
Johnson & Johnson's book value per share is $32.47, while the current stock price is $163.67, resulting in a price-to-book (P/B) ratio of 5.04. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$169.18

3.37% upside potential

Analyst Recommendations

Strong Buy

4

Buy

7

Hold

13

Sell

0

Strong Sell

0

How reliable are analyst predictions for JNJ?
24 analysts cover JNJ with 46% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $169.18 implies 3.4% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on JNJ?
Current analyst recommendations:4 Strong Buy, 7 Buy, 13 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 02:35 AM

Technical Indicators

What does JNJ's RSI value tell investors?
RSI data is not available for this stock.
How should traders interpret JNJ's MACD and moving average crossovers?
MACD and moving average data are not available for this stock.

No technical indicators available yet.

Active Alerts

No active alerts for this stock.

Be the first to set up an alert for JNJ and get notified when the price changes.

Johnson & Johnson (JNJ) Stock Analysis 2025: Pharma & MedTech Pure-Play Investment Guide

Explore how Johnson & Johnson's $380 billion pharmaceutical and medical technology empire emerged stronger after spinning off consumer brands to Kenvue. With CEO Joaquin Duato steering toward oncology leadership and surgical innovation, discover why this 62-year Dividend King offers compelling value at just 15x earnings despite facing $9 billion in talc settlements.

When Johnson & Johnson completed its historic spinoff of Kenvue in August 2023, it didn't just shed Band-Aids and baby powder – it shed 137 years of consumer products heritage to emerge as a focused biopharmaceutical and medical technology powerhouse. Under the leadership of CEO Joaquin Duato, a 30-year J&J veteran who rose through the pharmaceutical ranks, the new J&J represents a deliberate bet on higher-margin, higher-growth businesses. With $100 billion in annual revenue, $380 billion market capitalization, and a pristine AAA credit rating, this isn't your grandmother's J&J anymore.

The transformation couldn't have come at a better time. While the company works through a proposed $9 billion settlement for talc-related lawsuits, its pharmaceutical division is firing on all cylinders with blockbuster oncology drugs like Darzalex (multiple myeloma) and Imbruvica (blood cancers) driving double-digit growth. Meanwhile, the MedTech division is pioneering surgical robotics and digital surgery platforms that position J&J at the forefront of operating room innovation. For investors seeking pharmaceutical exposure with the stability of a 62-year dividend growth streak, the new J&J offers a compelling proposition at just 15 times earnings.

Financial Strength: The Numbers Behind the Transformation

Johnson & Johnson's financial profile post-spinoff reveals the wisdom of Duato's strategic focus. The pharmaceutical division generated $55 billion in 2024 revenue with operating margins exceeding 30%, while MedTech contributed $30 billion at 25% margins. This compares favorably to the consumer business's 15-18% margins, validating the spinoff rationale. Total company operating margins expanded to 27% from 24% pre-spinoff, despite ongoing legal settlements.

Cash generation remains robust, with free cash flow exceeding $18 billion annually. This funds the sacrosanct dividend ($4.76 per share annually), which has increased every year since 1963, making J&J a Dividend King among the elite dividend aristocrats. The company maintains $20 billion in cash against just $35 billion in debt, preserving the financial flexibility that allowed it to weather the talc litigation without compromising R&D investment or shareholder returns.

Perhaps most impressively, J&J achieved 8% operational revenue growth in 2024 excluding COVID vaccine declines, driven by 12% pharmaceutical growth. The Stelara biosimilar headwind (the drug loses exclusivity in 2025) is already priced in, with the robust oncology pipeline more than offsetting the $7 billion revenue exposure. With R&D spending at $15 billion annually – more than most competitors' total revenue – J&J continues investing in its future while returning cash to shareholders.

Valuation Analysis: Premium Quality at a Discount Price

At 15 times forward earnings, Johnson & Johnson trades at a significant discount to pharmaceutical peers like Eli Lilly (40x), AbbVie (19x), and Merck (16x). This valuation gap reflects lingering concerns about talc litigation and the Stelara patent cliff, but savvy investors recognize these headwinds are largely resolved. The proposed $9 billion talc settlement, while substantial, removes a major overhang and represents less than 3% of market value.

The dividend yield of 3% significantly exceeds the S&P 500's 1.3% average while offering superior growth prospects. J&J's 5-year dividend growth rate of 6% annually should continue given the payout ratio of just 45%, leaving ample room for increases. When combined with potential 6-8% earnings growth, total returns could approach 10-12% annually – attractive for a defensive healthcare holding.

Three Powerful Growth Catalysts

1. Oncology Pipeline: The Next Generation of Cancer Treatment

Johnson & Johnson's oncology franchise represents the crown jewel of its pharmaceutical portfolio, generating over $17 billion annually and growing at 15%. Darzalex, the multiple myeloma blockbuster, reached $9.7 billion in sales with significant expansion potential in earlier treatment lines. But the real excitement lies in the pipeline: bispecific antibodies, CAR-T cell therapies, and antibody-drug conjugates that could transform cancer treatment. With 15 oncology drugs in late-stage development and Joaquin Duato's pharmaceutical expertise guiding strategy, J&J is positioned to lead the next wave of cancer innovation.

2. MedTech Innovation: The Digital Surgery Revolution

While pharmaceuticals grab headlines, J&J's MedTech division quietly builds the operating room of the future. The $30 billion business spans orthopedics (knee and hip replacements), surgery (advanced instruments and robotics), and vision (contact lenses and surgical equipment). The recent launch of OTTAVA, J&J's surgical robotics platform, positions the company to capture share in the $12 billion robotic surgery market growing at 20% annually. Combined with digital surgery platforms that use AI to improve outcomes, MedTech could surprise investors with accelerating growth as hospitals recover from pandemic-deferred procedures.

3. Emerging Markets: Untapped Global Potential

Johnson & Johnson generates just 30% of revenue from emerging markets despite these regions representing 85% of global population. As middle classes expand in China, India, and Southeast Asia, demand for innovative medicines and medical devices explodes. J&J's infrastructure investments in these markets – including local manufacturing and partnerships – position it to capture disproportionate growth. Management targets double-digit emerging market growth, which could add 2-3% to overall company growth as these markets increase from 30% to 40% of revenue by 2030.

Risk Assessment: Challenges in Transition

1. Legal and Litigation Overhang

  • Talc lawsuit settlement of $9 billion requires bankruptcy court approval
  • Additional lawsuits possible despite comprehensive settlement attempt
  • Reputational damage from decades of consumer product litigation
  • Opioid-related lawsuits adding to legal expenses

2. Patent Cliff Pressures

  • Stelara loses exclusivity in 2025, risking $7 billion in annual revenue
  • Imbruvica facing increased competition from newer therapies
  • Biosimilar competition intensifying across the portfolio
  • Need to replace $15 billion in revenue by 2030 from patent losses

3. Competitive Dynamics

  • Fierce competition in oncology from Roche, Novartis, and Merck
  • MedTech margins pressured by hospital purchasing power
  • R&D productivity must improve to justify $15 billion annual spend
  • Cultural shift needed from consumer products to pure biopharma

Investor Suitability Analysis

Perfect For

  • Dividend-focused investors seeking 62-year growth streak stability
  • Healthcare investors wanting pharmaceutical exposure with reduced volatility
  • Conservative portfolios requiring AAA-rated balance sheet quality
  • Long-term holders believing in oncology and MedTech innovation

Less Suitable For

  • Growth investors seeking 20%+ returns (mature company dynamics)
  • Traders wanting volatility (beta of 0.7 means limited price swings)
  • ESG-focused investors concerned about talc litigation legacy
  • Those seeking pure-play biotech exposure

The Dividend Aristocrat Investment Approach

For dividend investors, Johnson & Johnson represents the gold standard of reliability. The 62-year streak of consecutive dividend increases – through recessions, wars, and pandemics – demonstrates unwavering commitment to shareholders. At the current 3% yield, a $100,000 investment generates $3,000 in annual income, likely growing 5-6% yearly. Reinvesting dividends compounds returns dramatically: $10,000 invested when Joaquin Duato joined J&J in 1989 would be worth over $150,000 today.

The optimal strategy involves accumulating shares systematically, particularly during market pessimism about patent cliffs or legal issues. Set automatic purchases to buy shares monthly, increasing positions during any dip below $150. With the quarterly dividend providing regular cash flow and the business generating predictable earnings, J&J serves as a portfolio cornerstone rather than a trading vehicle. Patience gets rewarded – every past "crisis" proved a buying opportunity for long-term holders.

Investment Conclusion: Transformation Creates Opportunity

Johnson & Johnson's transformation from sprawling conglomerate to focused biopharma leader marks an inflection point for investors. While the company no longer sells baby shampoo, it retained what matters most: world-class pharmaceutical research, innovative medical technologies, and that remarkable 62-year dividend growth streak. CEO Joaquin Duato's insider perspective and pharmaceutical expertise provide confidence that J&J can navigate the Stelara patent cliff while building the next generation of blockbusters.

At 15 times earnings with a 3% dividend yield, J&J offers compelling value for patient investors. Yes, talc lawsuits create headlines and patent cliffs pressure growth, but the company's fundamental strength remains intact. The combination of oncology leadership, MedTech innovation, and emerging market expansion provides multiple paths to sustainable growth. For investors seeking healthcare exposure with downside protection, the new J&J deserves strong consideration.

  • 2025 Price Target: $175 (13% upside from current levels)
  • Dividend Growth Projection: 5-6% annually, maintaining aristocrat status
  • Risk Rating: Below average for pharmaceutical sector
  • Recommendation: Accumulate on weakness below $155, hold for dividend growth

Conclusion

Johnson & Johnson emerges from its historic transformation as a more focused, higher-margin business with clearer growth drivers. While shedding the consumer division eliminates some diversification, it creates a pure-play pharmaceutical and medical technology leader trading at an attractive valuation. The talc litigation resolution, while expensive, removes a major overhang and allows management to focus on innovation. For dividend growth investors seeking pharmaceutical exposure with a 62-year track record of increases, J&J represents a cornerstone holding at current levels.

Bull Case
$190 (23% upside)
Base Case
$175 (13% upside)
Bear Case
$145 (6% downside)

Stay Ahead of the Market with Johnson & Johnson Alerts

Set up price alerts for Johnson & Johnson and get notified instantly when the price hits your target. Never miss an important price movement again.