Johnson & Johnson

JNJ

Drug Manufacturers - General · Healthcare

Price

$253.04

+3.07 (+1.23%)

Market Cap

$609.12B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−9.1% over 3y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 2.67B (2022) → 2.43B (2025)

Johnson & Johnson makes medicines, medical devices, and consumer health products that people use every day. The company develops prescription drugs for serious diseases like cancer and autoimmune disorders, manufactures surgical equipment and hip replacements for hospitals, and sells familiar brands like Tylenol, Band-Aid, and Neutrogena to consumers. J&J is one of the largest healthcare companies in the world and has been operating for over 130 years.

The company makes money by selling its products to hospitals, pharmacies, doctors, and directly to consumers through stores. J&J operates in nearly every country globally and generates over $90 billion in annual revenue, making it a healthcare giant. Its competitive advantage comes from having a diversified portfolio across multiple healthcare sectors and strong research capabilities that consistently produce new drugs. The company's main growth driver is its pharmaceutical division, which develops expensive specialty medicines, though it faces ongoing legal costs from lawsuits related to some of its products.

Winston Score History

Politician Trades

41 trades / 12mo

20 Congressional buys and 21 sells on JNJ in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-53.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$14.7B/ year

↓ Declining (-15% vs prior year)

15.6% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$21.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Johnson & Johnson is growing revenue at 10% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

71.5%

Premium pricing power — 71.5% gross margin

Operating Margin

26.6%

Excellent — 26.6% operating margin

ROCE

6.5%

Weak — 6.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+7.9%

Steady sales growth (7.9% YoY)

EPS YoY

-4.4%

Earnings shrinking (-4.4% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

109%

Turns 109% of profit into real cash

FCF Margin

18.5%

Converts sales into free cash efficiently (18.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.22

Conservative — low debt load (0.22)

Interest Cover

31.97x

Comfortably covers interest (32.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

29.2x

Growth-priced — P/E 29.2

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+11.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (29.2 → 18.1)

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Dividends

Dividend Yield

2.06%

Moderate income — 2.06% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+4.4%

Dividend growing modestly (4.4% YoY)

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