How does JNJ's PE Ratio compare to its peers?

JNJ is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (42x).

How does JNJ's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

JNJ is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the US Pharmaceuticals industry average (20.5x).

What is JNJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JNJ is good value based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (37x).

What is the Fair Price of JNJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

JNJ ($155.17) is trading below our estimate of [[fair value]] ($267.08)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is less than 20% higher than the current share price.

Johnson & Johnson (NYSE:JNJ) - Stock Price, News & Analysis

JNJ Stock Overview

Researches, develops, manufactures, and sells various products in the healthcare field worldwide. More details

JNJ fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	4/6
Dividends	5/6

Rewards

Trading at 41.9% below our estimate of its fair value

Earnings are forecast to grow 10.63% per year

Pays a reliable dividend of 3.2%

Risk Analysis

Large one-off items impacting financial results

Community Narratives

Create a narrative

Narratives bring a range of perspectives from our community.

WarrenAI

Based on Analyst Price Targets

Innovation And Decisive Expansion Propel Growth In High-Potential Markets

Key Takeaways Recent acquisitions and new product launches in MedTech and Innovative Medicine are poised to drive future revenue growth and market expansion. Strategic focus on high-innovation areas is expected to boost operational efficiencies and improve earnings and net margins.

View narrative

US$174.89

11.3% undervalued

3.33%

Revenue growth p.a.

3 days ago

Goran_Damchevski

Equity Analyst

Rich Drug Pipeline Will Push Revenues and Earnings Higher

Key Takeaways Well-diversified drug pipeline with 52 drugs in late-stage approval - a good hedge for its patent expirations Kenvue spin off allows JNJ to focus on its more profitable Medical Devices and Pharmaceuticals segments Continued dividend increases and buybacks are affordable and will help capital returns Post Kenvue, I expect JNJ to grow revenues by 7.5% p.a. from its new baseline of $84B, and at higher margins Some risks around litigation, patent expiry and drug success are present Catalysts Robust Drug Pipeline: 52 Drugs Racing To The Finish Line In Late-Stage Approval The key threat to a pharmaceutical stock is the patent expiration of their high value assets. Should a company lack a product pipeline to bolster its future product portfolio, then losing exclusivity to any one drug can be a hit to the business.

View narrative

US$173.55

10.6% undervalued

6.30%

Revenue growth p.a.

26 days ago

StjepanK

Equity Analyst and Writer

Industry Tailwinds, Company Headwinds And New Products Will Lead To Stable Revenue Growth

Key Takeaways I expect JNJ to remain an established and mature market performer in a relatively stable sector. Some short-term company-related headwinds are cancelled out by long-term industry-related tailwinds Two main risks come from the talc-related litigation issue and patent expiration Most promising revenue growth opportunities are from cancer therapy drugs, with a TAM of $21.6b.

View narrative

US$133.00

16.7% overvalued

3.00%

Revenue growth p.a.

5 months ago

Johnson & Johnson Competitors

Merck

NYSE:MRK

US$250.9b

Eli Lilly

NYSE:LLY

US$673.5b

Pfizer

NYSE:PFE

US$145.4b

Zoetis

NYSE:ZTS

US$79.8b

Price History & Performance

Summary of all time highs, changes and price drops for Johnson & Johnson
Historical stock prices
Current Share Price	US$155.17
52 Week High	US$168.85
52 Week Low	US$143.13
Beta	0.52
11 Month Change	-3.55%
3 Month Change	-5.73%
1 Year Change	1.75%
33 Year Change	-2.53%
5 Year Change	12.86%
Change since IPO	24,727.24%

Johnson & Johnson: Policy Uncertainty Elevated, But Shares Remain Inexpensive

Nov 19

Johnson & Johnson: Tracking Well Above The Industry

Nov 13

Recent updates

Shareholder Returns

	JNJ	US Pharmaceuticals	US Market
7D	0.8%	1.6%	2.2%
1Y	1.8%	9.9%	31.6%

Return vs Industry: JNJ underperformed the US Pharmaceuticals industry which returned 9.9% over the past year.

Return vs Market: JNJ underperformed the US Market which returned 31.6% over the past year.

Price Volatility

Is JNJ's price volatile compared to industry and market?
JNJ volatility
JNJ Average Weekly Movement	1.8%
Pharmaceuticals Industry Average Movement	9.5%
Market Average Movement	6.3%
10% most volatile stocks in US Market	15.7%
10% least volatile stocks in US Market	3.1%

Stable Share Price: JNJ has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: JNJ's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1886	131,900	Joaquin Duato	www.jnj.com

Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company’s Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; infectious diseases comprising HIV/AIDS; neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia; oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration; and pulmonary hypertension comprising pulmonary arterial hypertension through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. Its MedTech segment provides Interventional Solutions, including electrophysiology products to treat heart rhythm disorders; the heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock; and neurovascular care that treats hemorrhagic and ischemic stroke.

Johnson & Johnson Fundamentals Summary

How do Johnson & Johnson's earnings and revenue compare to its market cap?
JNJ fundamental statistics
Market cap	US$373.59b
Earnings (TTM)	US$14.77b
Revenue (TTM)	US$87.70b

25.3x

P/E Ratio

4.3x

P/S Ratio

Is JNJ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
JNJ income statement (TTM)
Revenue	US$87.70b
Cost of Revenue	US$26.84b
Gross Profit	US$60.85b
Other Expenses	US$46.09b
Earnings	US$14.77b

Last Reported Earnings

Sep 29, 2024

Next Earnings Date

Jan 22, 2025

Earnings per share (EPS)	6.13
Gross Margin	69.39%
Net Profit Margin	16.84%
Debt/Equity Ratio	51.0%

How did JNJ perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

79%

Payout Ratio

Does JNJ pay a reliable dividends?

See JNJ dividend history and benchmarks

When do you need to buy JNJ by to receive an upcoming dividend?
Johnson & Johnson dividend dates
Ex Dividend Date	Nov 26 2024
Dividend Pay Date	Dec 10 2024
Days until Ex dividend	2 days
Days until Dividend pay date	16 days

Does JNJ pay a reliable dividends?

See JNJ dividend history and benchmarks

JNJ Stock Overview

Rewards

Risk Analysis

Innovation And Decisive Expansion Propel Growth In High-Potential Markets

Rich Drug Pipeline Will Push Revenues and Earnings Higher

Industry Tailwinds, Company Headwinds And New Products Will Lead To Stable Revenue Growth

Johnson & Johnson Competitors

NYSE:MRK

US$250.9b

NYSE:LLY

US$673.5b

NYSE:PFE

US$145.4b

NYSE:ZTS

US$79.8b

Price History & Performance

Recent News & Updates

Johnson & Johnson Seeks U.S. FDA Approval for Subcutaneous Induction Regimen of Tremfya (Guselkumab) inulcerative Colitis, A First for an IL-23 Inhibitor

Johnson & Johnson: Policy Uncertainty Elevated, But Shares Remain Inexpensive

Upcoming dividend of US$1.24 per share

Johnson & Johnson Announces Results from Additional Analyses of the Phase 2 DAHLIA Study Highlighting Improvement in Key Measures of Disease Activity and IgG Reduction

Johnson & Johnson: Tracking Well Above The Industry

Johnson & Johnson Announces U.S. Food and Drug Administration Grants Nipocalimab Breakthrough Therapy Designation for the Treatment of Adults Living with Moderate-To-Severe Sjogren's Disease

Recent updates

Johnson & Johnson Seeks U.S. FDA Approval for Subcutaneous Induction Regimen of Tremfya (Guselkumab) inulcerative Colitis, A First for an IL-23 Inhibitor

Johnson & Johnson: Policy Uncertainty Elevated, But Shares Remain Inexpensive

Upcoming dividend of US$1.24 per share

Johnson & Johnson Announces Results from Additional Analyses of the Phase 2 DAHLIA Study Highlighting Improvement in Key Measures of Disease Activity and IgG Reduction

Johnson & Johnson: Tracking Well Above The Industry

Johnson & Johnson Announces U.S. Food and Drug Administration Grants Nipocalimab Breakthrough Therapy Designation for the Treatment of Adults Living with Moderate-To-Severe Sjogren's Disease

Johnson & Johnson Submits Applications in the U.S. and EU Seek Approval of DARZALEX FASPRO® as Subcutaneous Monotherapy for High-Risk Smoldering Multiple Myeloma

Johnson & Johnson Announces Results from Phase 3 GRAVITI Study of Tremfya

Johnson & Johnson Highlights Innovative Neuropsychiatry Portfolio and Pipeline at Psych Congress

Johnson & Johnson Announces New Spectrem Study Findings Reveal Tremfya (Guselkumab) Effectively Clears Overlooked and Undertreated Plaque Psoriasis

Johnson & Johnson: Q3 Earnings Highlights Resilience And New Growth

Third quarter dividend of US$1.24 announced

Connecticut Jury Delivers $15 Million Asbestos Verdict Against Johnson & Johnson

Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind

Johnson & Johnson Announces Positive Results from the Phase 2/3 Vibrance-MG Study of Nipocalimab

Johnson & Johnson Q3 Earnings Preview: Dividend Dependability And Steady Growth

Johnson & Johnson Announces Tremfya Data in Both Crohn's Disease and Ulcerative Colitis

Johnson & Johnson Announces the Results of A Landmark Real-World, Head-To-Head Study Showing That Erleada (Apalutamide)

Johnson & Johnson Files for U.S. FDA Approval of DARZALEX FASPRO-Based Quadruplet Regimen for Newly Diagnosed Multiple Myeloma Patients for Whom Transplant Is Not Planned

Johnson & Johnson Announces Data from Three Studies Highlighting Clinical Efficacy of Darzalex® (Daratumumab) and Darzalex Faspro in Maintenance Regimens

Johnson & Johnson: A Sell-Rated Dividend King

Johnson & Johnson Announces Interim Data from the Ongoing Phase 2 Sunrise-4 Study Showing Neoadjuvant Treatment with Investigational Tar-200 Plus Cetrelimab

Johnson & Johnson Announces Updated Results from the Phase 3 Mariposa-2 Study Which Showed Rybrevant (Amivantamab-Vmjw)

Johnson & Johnson Announces the Retirement of D. S. Davis as Director and Committee Changes

Why Investors Shouldn't Be Surprised By Johnson & Johnson's (NYSE:JNJ) P/E

Johnson & Johnson to Report Q4, 2024 Results on Jan 22, 2025

Johnson & Johnson Seeks First Approval of Nipocalimab to Treat Broadest Population Living with Antibody Positive Generalized Myasthenia Gravis

Johnson & Johnson Announces Executive Changes

Shareholder Returns

Price Volatility

About the Company

Johnson & Johnson Fundamentals Summary

25.3x

4.3x

Earnings & Revenue

Dividends

3.2%

79%