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Johnson & JohnsonXSWX:JNJ +1.13%76 Debt-to-Equity is 0.58 as of Jun. 2026, which is 16% above its 10-year median of 0.50. GuruFocus rates XSWX:JNJ with a GF Score™ of 76/100 and a GF Value™ of CHF155.68 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 811 Drug Manufacturers companies, Johnson & Johnson ranks worse than 77.68% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Johnson & Johnson's Debt-to-Equity or its related term are showing as below:
XSWX:JNJ'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.37 Med: 0.5 Max: 0.75
Current: 0.58
During the past 13 years, the highest Debt-to-Equity Ratio of Johnson & Johnson was 0.75. The lowest was 0.37. And the median was 0.50.
XSWX:JNJ's Debt-to-Equity is ranked worse than 77.68% of 811
companies
in the Drug Manufacturers industry
Industry Median: 0.27
vs XSWX:JNJ: 0.58
Johnson & Johnson (XSWX:JNJ) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Johnson & Johnson Debt-to-Equity Related Terms
Johnson & Johnson Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Johnson & Johnson's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:JNJ vs ABBV, MRK, AMGN: Debt-to-Equity Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Johnson & Johnson Debt-to-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Johnson & Johnson (XSWX:JNJ) has a Debt-to-Equity of 0.58 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Johnson & Johnson and its competitors. This is 16% above median its historical median of 0.50. Over the past decade, Johnson & Johnson's Debt-to-Equity has ranged from 0.37 to 0.75. According to the industry distribution chart, Johnson & Johnson ranks #630 out of 811 companies in the Drug Manufacturers industry, placing it in the top 77.7%.
Is Johnson & Johnson's Debt-to-Equity too high?
Johnson & Johnson's current Debt-to-Equity of 0.58 is 16% above median its 10-year median of 0.50. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 0.75. The Drug Manufacturers industry median Debt-to-Equity is 0.27. Johnson & Johnson's value of 0.58 is 114.8% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #630 out of 811 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Johnson & Johnson has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's Debt-to-Equity compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #630 out of 811 companies for Debt-to-Equity. This places Johnson & Johnson in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Johnson & Johnson's value of 0.58 is 114.8% above this benchmark. Historically, Johnson & Johnson's own Debt-to-Equity has ranged from 0.37 to 0.75 over the past decade. While the company's 10-year median is 0.50 vs. the industry median of 0.27, Johnson & Johnson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Drug Manufacturers company?
The median Debt-to-Equity among Drug Manufacturers companies is 0.27, based on 811 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current Debt-to-Equity of 0.58 is 114.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current Debt-to-Equity is 0.58, which is 16% above median its own 10-year median of 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson & Johnson stock overvalued right now?
Based on GuruFocus' analysis, Johnson & Johnson (XSWX:JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF155.68, compared to a current price of CHF214.05 — trading 37.5% above its estimated fair value. The current Debt-to-Equity is 0.58, which is 16% above median its 10-year median of 0.50 and 114.8% above the Drug Manufacturers industry median of 0.27. Johnson & Johnson's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Johnson & Johnson (XSWX:JNJ), the current Debt-to-Equity is 0.58 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson & Johnson (XSWX:JNJ) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued.
The current stock price of CHF214.05 is trading 37.5% above its estimated GF Value™ of CHF155.68.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for XSWX:JNJ:
Debt-to-Equity: 0.58 (16% above median its 10-year median of 0.50)
GF Value™: CHF155.68 vs. price of CHF214.05 (37.5% above fair value)
Industry Position: 114.8% above the Drug Manufacturers median (#630 of 811)
No single metric tells the full story. See the XSWX:JNJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. After restructurings in 2023-24, the drug division focuses on three main therapeutic areas: immunology, oncology, and neurology. Geographically, just over half of total revenue is generated in the United States.
76GF Score
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