Sells prescription medicines and medical devices, following the separation of its consumer health business.
Johnson & Johnson (JNJ) scores 6.3 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and predictability is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Johnson & Johnson yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Two very different businesses sit inside one score: devices produce steady, procedure-driven revenue, pharmaceuticals produce high margins interrupted by patent expiries. Predictability and solvency are the pillars that make the case for the defensive reputation. Growth is where a patent cliff eventually surfaces, which makes the trend more interesting than the level.
On the filings behind it, Johnson & Johnson earns 6.3 out of 10 for business quality as of October 19, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.
Ranked with the 212 Healthcare companies Lemma publishes, the score sits at the 80th percentile, inside the top quarter of the group. The median across the group is 4.4, and the top quarter begins at 6.0, so Johnson & Johnson is well above the typical company here.
On profitability, Johnson & Johnson scores 8.0, a strong reading. Its peers have a median of 2.7 across 210 Healthcare companies, which places it well above them, at the 89th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.
On solvency, Johnson & Johnson scores 7.6, a strong reading. Its peers have a median of 6.5 across 150 Healthcare companies, which places it above them, at the 63rd percentile. Strong solvency points to a balance sheet that can carry its debts comfortably, with interest well covered and little pressure from creditors.
On growth, Johnson & Johnson scores 5.1, an average reading. Its peers have a median of 4.9 across 107 Healthcare companies, which places it in line with them, at the 55th percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.
Efficiency scores 5.2 out of 10, which reads as average. The median across 200 Healthcare companies is 6.0, so Johnson & Johnson is below its peers on this pillar and ranks at the 34th percentile. Efficiency near the median says the operation is neither unusually lean nor unusually capital hungry.
On predictability, Johnson & Johnson scores 5.0, an average reading. Its peers have a median of 3.4 across 207 Healthcare companies, which places it well above them, at the 69th percentile. Middling predictability suggests some volatility in the record, enough to read the other pillars with a little caution.
The profile is uneven. Profitability leads at 8.0 while predictability trails at 5.0, a gap of 3.0 points, so the overall averages a clear strength against a clear soft spot. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A predictability shortfall means the record is volatile, so the averages behind the other pillars move more than they appear to.
The pillar with the most room to move the score is efficiency. If it rose to the median of Healthcare companies, 6.0, Johnson & Johnson’s overall score would go from 6.3 to about 6.4. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Healthcare companies closest to Johnson & Johnson in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Johnson & Johnson scores 6.3 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is predictability. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Johnson & Johnson ranks at the 80th percentile of the 212 Healthcare companies Lemma publishes a score for. The median there is 4.4 and the top quarter starts at 6.0, against Johnson & Johnson’s 6.3.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for JNJ are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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