What are the investment strengths of Johnson & Johnson (JNJ)?

Defensive cash machine: 27.3% net margin TTM with 18.7B FCF funds both 15.7B R&D and 12.3B dividends - rare self-funding model. Scale moat: 92.1B revenue enables R&D spend 400x industry median, creating pipeline barriers smaller peers cannot match.

What are the investment risks for Johnson & Johnson (JNJ)?

Intangible risk: 96.8B goodwill/intangibles exceeds 79.3B equity - any major impairment directly destroys book value. Valuation stretched: P/E 24.5x vs industry median 20.2x and P/S 5.3x vs median 4.1x despite mature growth profile.

Johnson & Johnson

JNJ

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Johnson & Johnson AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Tangible book value is -17.5B due to 96.8B in goodwill/intangibles (122% of equity) - acquisition-dependent balance sheet.[Tangible Book Value]
R&D spend of 15.7B TTM (17% of revenue) vs industry median 37.6M - 400x scale advantage in pipeline investment.[Research and Development]
ROIC of 21.7% TTM vs industry median -32% - exceptional capital efficiency despite massive intangible base.[Return on Invested Capital]

Watch Triggers

Goodwill and Other Intangible Assets: Impairment charge >5B or goodwill/equity ratio exceeds 130% — Would signal acquisition value destruction and pressure already-negative tangible book
Free Cash Flow: FCF falls below 15B TTM (dividend coverage <1.2x) — Dividend sustainability thesis depends on FCF cushion above 12.3B payout
Operating Margin: Drops below 22% TTM — Would indicate pricing power erosion or cost inflation outpacing revenue

Bull Case

Defensive cash machine: 27.3% net margin TTM with 18.7B FCF funds both 15.7B R&D and 12.3B dividends - rare self-funding model.

Net MarginFree Cash FlowResearch and Development

Scale moat: 92.1B revenue enables R&D spend 400x industry median, creating pipeline barriers smaller peers cannot match.

Total RevenueResearch and Development

Bear Case

Intangible risk: 96.8B goodwill/intangibles exceeds 79.3B equity - any major impairment directly destroys book value.

Goodwill and Other Intangible AssetsTotal EquityTangible Book Value

Valuation stretched: P/E 24.5x vs industry median 20.2x and P/S 5.3x vs median 4.1x despite mature growth profile.

PE RatioPS Ratio

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

55%

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Forward Thesis

FCF generation will sustain 5.08 dividend (3.1% yield) while funding 15.7B R&D pipeline

1-3yhigh

18.7B FCF TTM covers 12.3B dividend with 6.4B cushion
Net debt of 27.6B at 0.58x equity is manageable
Operating margin 26.3% provides pricing power buffer

FCF margin 20.3% TTMDebt/equity 0.58 vs industry norm24.2B operating cash flow TTM

Valuation Context

Caveats

Public Strategies Rankings

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JNJ Fundamentals

Manufacturing → Chemical Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$597.22B		—
Enterprise Value	$625.44B		—
P/E Ratio	22		—
Total Revenue - TTM	$94.19B	+6.0%	—
Earnings Per Share (diluted) - TTM	$11.03	+9.7%	—
Operating Margin - TTM	27.2%	+2.2%	—
Net Margin - TTM	28.5%	+12.6%	—
Free Cash Flow - TTM	$19.31B	+6.9%	—
Return on Common Equity - TTM	35.0%	+16.1%	—
Beta 5Y (Monthly)	unknown		—

JNJ Dividend History

105 dividends

2026

$1.3000

02/24/26$1.3000

2025

$5.1400

11/25/25$1.3000

08/26/25$1.3000

05/27/25$1.3000

02/18/25$1.2400

2024

$4.9100

11/26/24$1.2400

08/27/24$1.2400

05/20/24$1.2400

02/16/24$1.1900

2023

$4.7000

11/20/23$1.1900

08/25/23$1.1900

05/22/23$1.1900

02/17/23$1.1300

2022

$4.4500

11/21/22$1.1300

08/22/22$1.1300

05/23/22$1.1300

02/18/22$1.0600

2021

$4.1900

11/22/21$1.0600

08/23/21$1.0600

05/24/21$1.0600

02/22/21$1.0100

2020

$3.9800

11/23/20$1.0100

08/24/20$1.0100

05/22/20$1.0100

02/24/20$0.9500

2019

$3.7500

11/25/19$0.9500

08/26/19$0.9500

05/24/19$0.9500

02/25/19$0.9000

2018

$3.5400

11/26/18$0.9000

08/27/18$0.9000

05/25/18$0.9000

02/26/18$0.8400

2017

$3.3200

11/27/17$0.8400

08/25/17$0.8400

05/25/17$0.8400

02/24/17$0.8000

2016

$3.1500

11/18/16$0.8000

08/19/16$0.8000

05/20/16$0.8000

02/19/16$0.7500

2015

$2.9500

11/20/15$0.7500

08/21/15$0.7500

05/21/15$0.7500

02/20/15$0.7000

2014

$2.7600

11/21/14$0.7000

08/22/14$0.7000

05/22/14$0.7000

02/21/14$0.6600

2013

$2.5900

11/22/13$0.6600

08/23/13$0.6600

05/23/13$0.6600

02/22/13$0.6100

2012

$2.4000

11/23/12$0.6100

08/24/12$0.6100

05/24/12$0.6100

02/24/12$0.5700

2011

$2.2500

11/25/11$0.5700

08/26/11$0.5700

05/26/11$0.5700

02/25/11$0.5400

2010

$2.1100

11/26/10$0.5400

08/27/10$0.5400

05/27/10$0.5400

02/19/10$0.4900

2009

$1.9300

11/20/09$0.4900

08/21/09$0.4900

05/21/09$0.4900

02/20/09$0.4600

2008

$1.7950

11/21/08$0.4600

08/22/08$0.4600

05/22/08$0.4600

02/22/08$0.4150

2007

$1.6200

11/23/07$0.4150

08/24/07$0.4150

05/24/07$0.4150

02/23/07$0.3750

2006

$1.4550

11/24/06$0.3750

08/25/06$0.3750

05/25/06$0.3750

02/24/06$0.3300

2005

$1.2750

11/18/05$0.3300

08/19/05$0.3300

05/13/05$0.3300

02/11/05$0.2850

2004

$1.0950

11/12/04$0.2850

08/13/04$0.2850

05/14/04$0.2850

02/12/04$0.2400

2003

$0.9250

11/14/03$0.2400

08/15/03$0.2400

05/16/03$0.2400

02/13/03$0.2050

2002

$0.7950

11/15/02$0.2050

08/16/02$0.2050

05/17/02$0.2050

02/14/02$0.1800

2001

$0.7000

11/16/01$0.1800

08/17/01$0.1800

05/18/01$0.1800

02/15/01$0.1600

2000

$0.6200

11/17/00$0.1600

08/18/00$0.1600

05/19/00$0.1600

02/11/00$0.1400

JNJ Stock Splits

1 stock split

06/13/010.5:1 split

JNJ SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/11/26	12/28/25	Unknown	0000200406-26-000016
10/22/25	09/28/25	10-Q	0000200406-25-000209
07/24/25	06/29/25	10-Q	0000200406-25-000178
04/23/25	03/30/25	10-Q	0000200406-25-000119
02/13/25	12/29/24	Unknown	0000200406-25-000038
10/23/24	09/29/24	10-Q	0000200406-24-000096
07/25/24	06/30/24	10-Q	0000200406-24-000075
05/01/24	03/31/24	10-Q	0000200406-24-000049
02/16/24	12/31/23	10-K	0000200406-24-000013
10/27/23	10/01/23	10-Q	0000200406-23-000102
07/31/23	07/02/23	10-Q	0000200406-23-000082
04/28/23	04/02/23	10-Q	0000200406-23-000056
02/16/23	01/01/23	10-K	0000200406-23-000016
10/27/22	10/02/22	10-Q	0000200406-22-000086
07/29/22	07/03/22	10-Q	0000200406-22-000071
04/29/22	04/03/22	10-Q	0000200406-22-000048
02/17/22	01/02/22	10-K	0000200406-22-000022
10/29/21	10/03/21	10-Q	0000200406-21-000070
07/29/21	07/04/21	10-Q	0000200406-21-000057
04/30/21	04/04/21	10-Q	0000200406-21-000036
02/22/21	01/03/21	10-K	0000200406-21-000008
10/23/20	09/27/20	10-Q	0000200406-20-000056
07/24/20	06/28/20	10-Q	0000200406-20-000050
04/29/20	03/29/20	10-Q	0000200406-20-000035
02/18/20	12/29/19	10-K	0000200406-20-000010
10/28/19	09/29/19	10-Q	0000200406-19-000066
07/29/19	06/30/19	10-Q	0000200406-19-000053
05/01/19	03/31/19	10-Q	0000200406-19-000033
02/20/19	12/30/18	10-K	0000200406-19-000009
10/31/18	09/30/18	10-Q	0000200406-18-000055
08/02/18	07/01/18	10-Q	0000200406-18-000041
05/01/18	04/01/18	10-Q	0000200406-18-000019
02/21/18	12/31/17	10-K	0000200406-18-000005
11/02/17	10/01/17	10-Q	0000200406-17-000052
08/03/17	07/02/17	10-Q	0000200406-17-000042
05/08/17	04/02/17	10-Q	0000200406-17-000024
02/27/17	01/01/17	10-K	0000200406-17-000006
11/04/16	10/02/16	10-Q	0000200406-16-000112
08/04/16	07/03/16	10-Q	0000200406-16-000105
05/10/16	04/03/16	10-Q	0000200406-16-000084
02/24/16	01/03/16	10-K	0000200406-16-000071
10/30/15	09/27/15	10-Q	0000200406-15-000060
07/31/15	06/28/15	10-Q	0000200406-15-000044
05/01/15	03/31/15	10-Q	0000200406-15-000019
02/24/15	12/28/14	10-K	0000200406-15-000004
10/30/14	09/28/14	10-Q	0000200406-14-000097
08/01/14	06/29/14	10-Q	0000200406-14-000089
05/02/14	03/30/14	10-Q	0000200406-14-000047
02/21/14	12/29/13	10-K	0000200406-14-000033
11/04/13	09/29/13	10-Q	0000200406-13-000112
08/01/13	06/30/13	10-Q	0000200406-13-000091
05/03/13	03/31/13	10-Q	0000200406-13-000057
02/22/13	12/31/12	10-K	0000200406-13-000038
11/09/12	09/30/12	10-Q	0000200406-12-000140
08/02/12	06/30/12	10-Q	0000200406-12-000119
05/07/12	03/31/12	10-Q	0000200406-12-000081
02/23/12	12/31/11	10-K	0001193125-12-075565
11/08/11	10/03/11	10-Q	0000950123-11-096471
08/09/11	07/03/11	10-Q	0000950123-11-075098
05/10/11	04/03/11	10-Q	0000950123-11-048125
02/25/11	01/02/11	10-K	0000950123-11-018128
11/10/10	10/03/10	10-Q	0000950123-10-103817
08/11/10	07/04/10	10-Q	0000950123-10-076076
05/10/10	04/04/10	10-Q	0000950123-10-047299
03/01/10	12/31/09	10-K	0000950123-10-019392
11/04/09	09/27/09	10-Q	0000950123-09-057624
08/04/09	06/28/09	10-Q	0000950123-09-029672
05/05/09	03/29/09	10-Q	0000200406-09-000064
02/20/09	12/28/08	10-K	0000950123-09-003187
11/04/08	09/30/08	Unknown	--
08/04/08	06/30/08	4	0000200406-08-000102
05/07/08	03/31/08	10-Q	0000200406-08-000084
02/26/08	12/31/07	4	0000200406-08-000005
11/06/07	09/30/07	10-Q	0000200406-07-000128
08/08/07	06/30/07	Unknown	--
05/10/07	03/30/07	Unknown	--
02/21/07	12/31/06	10-K	0000950123-07-002542
11/08/06	09/30/06	Unknown	--
08/08/06	06/30/06	4	0000200406-06-000104
05/10/06	03/30/06	Unknown	--
03/14/06	12/31/05	11-K	0000950123-06-005642
11/07/05	09/30/05	Unknown	--
08/10/05	06/30/05	Unknown	--
05/10/05	03/30/05	Unknown	--
03/15/05	12/31/04	11-K	0000950123-05-007908
11/03/04	09/30/04	Unknown	--
08/03/04	06/30/04	Unknown	--
05/05/04	03/30/04	Unknown	--
03/11/04	12/31/03	5	0000904454-04-000108
11/12/03	09/30/03	4	0000200406-03-000037
08/11/03	06/30/03	Unknown	--
05/14/03	03/31/03	8-K	0000200406-03-000006
03/18/03	12/31/02	Unknown	--
11/12/02	09/30/02	Unknown	--
06/30/02	06/30/02	Unknown	--
05/14/02	03/30/02	Unknown	--
03/20/02	12/31/01	5	0000904454-02-000066
11/13/01	09/30/01	10-Q	0000200406-01-500010
08/15/01	06/30/01	Unknown	--
05/14/01	03/30/01	Unknown	--
03/30/01	12/31/00	8-K	0000200406-01-000001
10/31/00	09/30/00	Unknown	--
06/30/00	06/30/00	Unknown	--
05/15/00	03/30/00	Unknown	--