Johnson & JohnsonJNJ +3.99%85 FCF Yield % is 2.84 as of Jun. 27, 2026, which is 40% below its 10-year median of 4.72. GuruFocus rates JNJ with a GF Score™ of 85/100 and a GF Value™ of $190.57 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Johnson & Johnson ranks better than 64.68% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Johnson & Johnson FCF Yield % Related Terms
Johnson & Johnson FCF Yield % Historical Data
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The historical data trend for Johnson & Johnson's FCF Yield % 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.
For the Drug Manufacturers - General subindustry, Johnson & Johnson's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's FCF Yield % 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 (JNJ) has a FCF Yield % of 2.84 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Johnson & Johnson and its competitors. This is 40% below median its historical median of 4.72. Over the past decade, Johnson & Johnson's FCF Yield % has ranged from 2.80 to 6.22. According to the industry distribution chart, Johnson & Johnson ranks #355 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 35.3%.
Is Johnson & Johnson's FCF Yield % too high?
Johnson & Johnson's current FCF Yield % of 2.84 is 40% below median its 10-year median of 4.72. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 6.22. The Drug Manufacturers industry median FCF Yield % is 0.67. Johnson & Johnson's value of 2.84 is 323.9% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #355 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Johnson & Johnson has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's FCF Yield % compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #355 out of 1005 companies for FCF Yield %. This puts Johnson & Johnson in the upper half of its industry. The industry median FCF Yield % is 0.67. Johnson & Johnson's value of 2.84 is 323.9% above this benchmark. Historically, Johnson & Johnson's own FCF Yield % has ranged from 2.80 to 6.22 over the past decade. While the company's 10-year median is 4.72 vs. the industry median of 0.67, 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 FCF Yield % for a Drug Manufacturers company?
The median FCF Yield % among Drug Manufacturers companies is 0.67, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current FCF Yield % of 2.84 is 323.9% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median FCF Yield % is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current FCF Yield % is 2.84, which is 40% below median its own 10-year median of 4.72. 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 (JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is $190.57, compared to a current price of $254.66 — trading 33.6% above its estimated fair value. The current FCF Yield % is 2.84, which is 40% below median its 10-year median of 4.72 and 323.9% above the Drug Manufacturers industry median of 0.67. Johnson & Johnson's overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Johnson & Johnson (JNJ), the current FCF Yield % is 2.84 as of Jun. 27, 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 (JNJ) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued.
The current stock price of $254.66 is trading 33.6% above its estimated GF Value™ of $190.57.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for JNJ:
FCF Yield %: 2.84 (40% below median its 10-year median of 4.72)
GF Value™: $190.57 vs. price of $254.66 (33.6% above fair value)
Industry Position: 323.9% above the Drug Manufacturers median (#355 of 1005)
No single metric tells the full story. See the 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.
85GF Score
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