Johnson & Johnson (XSWX:JNJ) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XSWX:JNJ Johnson & Johnson XSWX:JNJ
76 GF Score
Price CHF205.10
GF Value CHF154.50
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Johnson & Johnson Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Johnson & Johnson is: Low Risk: Strong fundamentals, worth long-term holding.

Johnson & Johnson  (XSWX:JNJ) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Johnson & Johnson Risk Assessment Related Terms

XSWX:JNJ vs ABBV, MRK, AMGN: Risk Assessment Comparison

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Risk Assessment falls into.


XSWX:JNJ
76GF Score
Johnson & Johnson XSWX:JNJ
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Johnson & Johnson (XSWX:JNJ) Overvalued in 2026?

Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued. The current stock price of CHF205.10 is trading 32.8% above its estimated GF Value™ of CHF154.50. GuruFocus considers Johnson & Johnson to be Significantly Overvalued.

Key valuation signals for XSWX:JNJ:

  • Risk Assessment:
  • GF Value™: CHF154.50 vs. price of CHF205.10 (32.8% above fair value)
  • GF Score™: 76/100 with 7 warning signs

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 Business Description

Address One Johnson & Johnson Plaza, New Brunswick, NJ, USA, 08933
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

Get the complete analysis for XSWX:JNJ

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF205.10
Price
CHF154.50
GF Value