# Johnson & Johnson (JNJ) — Stock CV

Johnson & Johnson is a $631B healthcare company. Revenue grew 8.1% over the last year, it keeps 21¢ of every dollar of sales as profit, and its net debt equals ~1.3 years of free cash flow. It trades at 29.9× earnings — in the most expensive third of its own history.

> Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech.

## Identity

- **Ticker**: JNJ
- **Sector**: Healthcare
- **Industry**: Drug Manufacturers - General
- **Headquarters**: NEW BRUNSWICK, NJ
- **Employees**: 140 800
- **Website**: https://www.jnj.com
- **Market cap**: $631B
- **Last price**: $261.79
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $97.9B
- **Net income**: $21.0B
- **Free cash flow**: $22.2B
- **Net debt**: $27.8B
- **P/E**: 29.9
- **Revenue growth (YoY)**: 8.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 36 |
| Growth | 63 |
| Profitability | 95 |
| Health | 49 |
| Quality | 72 |
| Moat | 87 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +8.1% YoY
- [x] Profitable — $21.0B TTM
- [x] Profit growing — +17.9% YoY
- [x] Generates cash — $22.2B TTM
- [x] Debt under control — ~1.3y of cash flow to repay
- [x] Established company — $631B market cap
- [x] Not printing shares — -9.0% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 37/100
- [x] Pays a dividend — yield 2.00%
- [x] Valuation not extreme — P/E 29.9

## Experience (career milestones)

- **FY2023** — Best year on record: $35.2B net income
- **May 4, 2023** — Spun off Kenvue: consumer brands (Tylenol, Band-Aid) become a separate company
- **2017** — Johnson & Johnson acquired Actelion in a $30 billion deal, the largest ever purchase by the company
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $50B: $71.9B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2008** — The company acquired HealthMedia, later renamed to Health & Wellness Solutions and the Human…
- **1998** — DePuy was acquired by Johnson & Johnson in 1998 for $3.5 billion
- **1987** — Acuvue contact lenses became the first disposable contact lenses available to consumers
- **1982** — Tylenol recall: gold-standard crisis response — pulled 31M bottles
- **Sep 24, 1944** — IPO on NYSE: family company goes public
- **1931** — Johnson & Johnson introduced the first prescription contraceptive gel marketed as Ortho-Gynol
- **1920** — Band-Aid: a cotton buyer's invention for his accident-prone wife
- **1894** — The company introduced the world's first maternity kit in 1894 to aid at-home births, called Dr
- **1886** — Founded in New Brunswick: the Johnson brothers — sterile surgical dressings
- **1886** — Robert Wood Johnson joined his brothers, James Wood Johnson and Edward Mead Johnson

## Strengths

- High gross margin (68.0%)
- Strongly profitable — 21.5% net margin
- Strong cash conversion — FCF is 22.7% of revenue
- Interest covered 34.0× by operating earnings
- High returns on invested capital (ROIC 24.5%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $93.8B | $20.9B | $19.8B |
| FY2022 | $94.9B | $17.9B | $17.2B |
| FY2023 | $85.2B | $35.2B | $18.2B |
| FY2024 | $88.8B | $14.1B | $19.8B |
| FY2025 | $94.2B | $26.8B | $19.7B |

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Source: https://stockcv.com/JNJ — derived from company filings; may be delayed or incomplete. Information, not investment advice.