JNJ JNJ

Name: JNJ Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 18, 2026

Price at analysis: $239.93

Crucible Score

63.2

B-

Quality × Value Composite

KQI — Quality

70.9

Fundamental Quality Index

KVI — Value

53.8

C-

Valuation Attractiveness Index

Crucible Verdict — JNJ

Johnson & Johnson presents a quality-value disconnect with strong fundamentals (82 financial quality, 88% earnings beat rate) but tepid valuation metrics dragging the overall score to 63.2. JNJ trades near fair value at $240 versus $249 base case, though insider selling raises questions about management confidence. The company's diversified healthcare platform provides defensive characteristics, but growth acceleration remains the key catalyst for multiple expansion.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

81.8

Growth Profile

61.7

Moat Durability

63.4

Management Effectiveness

69.1

Diversification & Resilience⚠

76.0

Market Position

72.0

Weakest dimension: Growth Profile (61.7)

◆ KVI Value Dimensions

DCF Margin of Safety

50.2

FCF Yield & Cash Returns

37.4

Relative Valuation

66.7

Growth-Adjusted Value

76.4

Historical Valuation

54.9

Macro Context

22.8

◆ DCF Valuation Scenarios

Bear Case

$185.42

Base Case

$248.67

Bull Case

$332.15

Price at Analysis

$239.93

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$185.42	2.5%	24.0%	6.5%
🟢 Base	$248.67	4.0%	27.0%	6.0%
🟢 Bull	$332.15	5.5%	30.0%	5.7%

Key Assumptions: JNJ's low beta of 0.33 yields a WACC of ~6.0% using CAPM (4.39% + 0.33 × 5.0% ERP), reflecting its defensive healthcare profile. Revenue growth anchored to historical CAGR of ~4.6% over the 5-year period with base case at 4% reflecting mature pharma dynamics and pipeline execution; operating margins normalized around 27% given recent volatility between 24.9%-27.5%. Bear case assumes generic competition and litigation headwinds compress margins to 24% with slowing growth, while bull case reflects successful pipeline launches and MedTech recovery driving margins toward 30%.

◆ Financial Snapshot

Profitability

Gross Margin72.8%

Operating Margin27.2%

Net Margin28.5%

ROIC13.7%

ROE25.5%

Balance Sheet

Balance SheetCR: 1.03

Cash ConversionFCF/EPS: 0.73x

Capital IntensityCapex/Rev: 5.1%

Altman Z-Score5.13 (Safe)

Piotroski F-Score4/9 (Mixed)

Growth

Revenue CAGR3.3% CAGR

Earnings CAGR16.2% CAGR

Growth ConsistencyCV: 1.30

Segment Breadth2/2 growing (100%)

Quarterly TrendMargin↘, WC↓, Exp↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOJoaquin Duato · 3 years

CEO Ownership< 1%

Compensation81% performance-based

Insider ActivitySelling

Capital AllocationROIC 13.7% vs WACC 1.6%

Earnings Beat Rate88% (19/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 18, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.