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Johnson & Johnson
🇺🇸 JNJ · NYSE/NASDAQ · US4781601046
Healthcare
USD 261.36 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
30.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 261.36 ÷ 8.63 = 30.3
TTM period through: 2026-06-30
Forward P/E (estimated): 22.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 30.2
Net Debt/EBITDA (TTM)
0.8x
Latest quarter: 3.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 3.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
25.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.29%
TTM: 2.00%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.29%
Trailing Yield (TTM, last 12 months): 2.00%
Payout Ratio (Fwd)
62.1%
TTM: 46.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 62.1%
Payout (TTM): 46.2%
Cash Flow Payout (TTM): 53.2%
FCF Coverage (TTM): 1.48x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
5.2%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 26 May 2027 | — | USD | 1.34 |
| Forecast* | Quarterly | — | 24 Feb 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 25 Nov 2026 | — | USD | 1.3 |
| Declared | Quarterly | 15 Jul 2026 | 25 Aug 2026 | 08 Sep 2026 | USD | 1.34 |
| Paid | Quarterly | 14 Apr 2026 | 26 May 2026 | 09 Jun 2026 | USD | 1.34 |
| Paid | Quarterly | 02 Jan 2026 | 24 Feb 2026 | 10 Mar 2026 | USD | 1.3 |
| Paid | Quarterly | 14 Oct 2025 | 25 Nov 2025 | 09 Dec 2025 | USD | 1.3 |
| Paid | Quarterly | 16 Jul 2025 | 26 Aug 2025 | 09 Sep 2025 | USD | 1.3 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Johnson & Johnson remains a highly defensive healthcare leader with an impeccable 64-year history of dividend growth and a pristine balance sheet. However, a stretched valuation (P/E >30x) and low 2.0% dividend yield make it unappealing for new capital deployment. Existing holders should maintain, but new buyers should wait for a significant pullback.
Sector Context
Johnson & Johnson is a diversified healthcare and pharmaceutical giant. In this DGI strategy, healthcare businesses carry a minor strategy-fit penalty (-5) as they are less strictly 'essential' than regulated utilities or consumer staples, though JNJ's unique AAA balance sheet and massive scale offer substantial defensive qualities.
📊 Strategy Analysis
- • AAA-rated fortress balance sheet with Net Debt/EBITDA of 0.84x and an outstanding ROE of 25.7%.
- • Impeccable dividend track record, recently raising its payout by 3.1% to mark 64 consecutive years of dividend growth.
- • Healthy dividend sustainability with a Cash Flow Payout of 53.2% and Free Cash Flow coverage of 1.48x.
⚠ What to Watch
- • Highly stretched valuation with a trailing P/E of 30.3x, trading significantly above the strategy's target range of 8-15x.
- • Unattractive current dividend yield of 2.00%, failing to provide a meaningful starting income.
- • Structural headwinds from impending patent expirations on key blockbusters (Stelara, Xarelto) and ongoing margin pressure from IRA Medicare price mandates.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.