Johnson & Johnson
Johnson & Johnson (JNJ) exhibits a mixed financial profile. The company shows consistent revenue and EPS growth, indicating sound business performance. Profitability metrics like net and operating margins are strong, but other profitability and financial health indicators are not available. Concerns arise from declining free cash flow and a low capital allocation score, suggesting potential inefficiencies in capital deployment. The current valuation appears favorable with a notable margin of safety.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
Johnson & Johnson demonstrates strong business performance with consistent revenue and EPS growth, underpinned by robust profitability. However, challenges in free cash flow generation and a low capital allocation score warrant close monitoring. The current valuation appears attractive, offering a margin of safety.
- Robust net and operating margins demonstrate efficient cost management and strong profitability.
- Consistent EPS growth of 7.62% CAGR outpaces revenue, indicating increasing shareholder value.
- High market capitalization as a Mega Cap company provides stability and significant market presence.
- Strong operating cash flow of 24,530 Cr, indicating healthy cash generation from core operations.
Balance Sheet
Johnson & Johnson has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
Capacity to fund growth, withstand downturns and return capital.
- Johnson & Johnson has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
- Balance sheet is functional but shows no standout strengths
- Long working capital cycle