Qualtix Stock Brief
Johnson & Johnson (JNJ) stock analysis: business quality, valuation, and entry timing
Johnson & Johnson develops prescription medicines and medical devices, after separating its consumer health business. Its long record of cash generation and a strong balance sheet are central to how the business scores. Public Qualtix model snapshot from 2026-10-26 for JNJ: business quality 73/100, above the model's stronger-company threshold and valuation Expensive. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates JNJ with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
JNJ public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 4.3% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 20.7% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 25.7% | Profitability margin | FMP, computed |
| Gross margin | 68.8% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 20.2% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 19.7% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $17.2B / Debt $44.7B | Balance-sheet context | FMP, reported |
| TTM P/E | 40.5x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 73/100, above the model's stronger-company threshold.
- Valuation is currently labeled Expensive, so the stock needs stronger business evidence or a better price to improve the setup.
Today's verdict
- Today's model verdict and Entry Timing for JNJ update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-09-27.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business quality clears the model's stronger-company threshold (73/100).
- Beta of 0.23 suggests lower market sensitivity than higher-beta alternatives.
What weakens the current view
- Valuation is currently labeled Expensive, so price still matters.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Compare JNJ's Expensive valuation with sector peers and ask what growth or margin evidence would justify the premium.
- Compare JNJ with MRK and PFE to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.