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Johnson & JohnsonJNJ -2.40%81 ROC (Joel Greenblatt) % is 107.87% as of Mar. 2026, which is 3% above its 10-year median of 104.47. GuruFocus rates JNJ with a GF Score™ of 81/100 and a GF Value™ of $191.22 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 983 Drug Manufacturers companies, Johnson & Johnson ranks better than 94.51% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Johnson & Johnson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 107.87%.
The historical rank and industry rank for Johnson & Johnson's ROC (Joel Greenblatt) % or its related term are showing as below:
JNJ'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 83.6 Med: 104.47 Max: 153.6
Current: 116.4
During the past 13 years, Johnson & Johnson's highest ROC (Joel Greenblatt) % was 153.60%. The lowest was 83.60%. And the median was 104.47%.
JNJ's ROC (Joel Greenblatt) % is ranked better than 94.51% of 983
companies
in the Drug Manufacturers industry
Industry Median: 11.46
vs JNJ: 116.40
Johnson & Johnson's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 5.30% per year.
Johnson & Johnson (NYSE:JNJ) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Johnson & Johnson ROC (Joel Greenblatt) % Related Terms
Johnson & Johnson ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Johnson & Johnson's ROC (Joel Greenblatt) % 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.
JNJ vs ABBV, MRK, AMGN: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's ROC (Joel Greenblatt) % falls into.
Johnson & Johnson ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 107.87% mean?
Johnson & Johnson (JNJ) has a ROC (Joel Greenblatt) % of 107.87% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Johnson & Johnson and its competitors. This is near median its historical median of 104.47. Over the past decade, Johnson & Johnson's ROC (Joel Greenblatt) % has ranged from 83.60 to 153.60. According to the industry distribution chart, Johnson & Johnson ranks #54 out of 983 companies in the Drug Manufacturers industry, placing it in the top 5.5%.
Is Johnson & Johnson's ROC (Joel Greenblatt) % too high?
Johnson & Johnson's current ROC (Joel Greenblatt) % of 107.87% is near median its 10-year median of 104.47. Over the past 10 years, this metric has ranged from a low of 83.60 to a high of 153.60. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.46. Johnson & Johnson's value of 107.87% is 841.3% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #54 out of 983 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Johnson & Johnson has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's ROC (Joel Greenblatt) % compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #54 out of 983 companies for ROC (Joel Greenblatt) %. This places Johnson & Johnson in the top 6% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.46. Johnson & Johnson's value of 107.87% is 841.3% above this benchmark. Historically, Johnson & Johnson's own ROC (Joel Greenblatt) % has ranged from 83.60 to 153.60 over the past decade. While the company's 10-year median is 104.47 vs. the industry median of 11.46, 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 ROC (Joel Greenblatt) % for a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.46, based on 983 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current ROC (Joel Greenblatt) % of 107.87% is 841.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current ROC (Joel Greenblatt) % is 107.87%, which is near median its own 10-year median of 104.47. 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 Modestly Overvalued. The stock's GF Value™ is $191.22, compared to a current price of $247.77 — trading 29.6% above its estimated fair value. The current ROC (Joel Greenblatt) % is 107.87%, which is near median its 10-year median of 104.47 and 841.3% above the Drug Manufacturers industry median of 11.46. Johnson & Johnson's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Johnson & Johnson (JNJ), the current ROC (Joel Greenblatt) % is 107.87% as of Mar. 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 $247.77 is trading 29.6% above its estimated GF Value™ of $191.22.
GuruFocus considers Johnson & Johnson to be Modestly Overvalued.
Key valuation signals for JNJ:
ROC (Joel Greenblatt) %: 107.87% (near median its 10-year median of 104.47)
GF Value™: $191.22 vs. price of $247.77 (29.6% above fair value)
Industry Position: 841.3% above the Drug Manufacturers median (#54 of 983)
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.
81GF Score
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