Johnson & JohnsonJNJ +0.45%81 3-Year ROIIC % is 64.04 as of Dec. 2025, which is 12708% above its 10-year median of 0.50. GuruFocus rates JNJ with a GF Score™ of 81/100 and a GF Value™ of $191.16 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 944 Drug Manufacturers companies, Johnson & Johnson ranks better than 85.7% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Johnson & Johnson's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 64.04%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Johnson & Johnson's 3-Year ROIIC % or its related term are showing as below:
JNJ's 3-Year ROIIC % is ranked better than 85.7% of 944
companies
in the Drug Manufacturers industry
Industry Median: 3.635
vs JNJ: 64.04
Johnson & Johnson (NYSE:JNJ) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Johnson & Johnson 3-Year ROIIC % Related Terms
Johnson & Johnson 3-Year ROIIC % Historical Data
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The historical data trend for Johnson & Johnson's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Johnson & Johnson (JNJ) has a 3-Year ROIIC % of 64.04 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Johnson & Johnson and its competitors. This is 12708% above median its historical median of 0.50. According to the industry distribution chart, Johnson & Johnson ranks #135 out of 944 companies in the Drug Manufacturers industry, placing it in the top 14.3%.
Is Johnson & Johnson's 3-Year ROIIC % too high?
Johnson & Johnson's current 3-Year ROIIC % of 64.04 is 12708% above median its 10-year median of 0.50. The Drug Manufacturers industry median 3-Year ROIIC % is 3.64. Johnson & Johnson's value of 64.04 is 1661.8% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #135 out of 944 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 Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's 3-Year ROIIC % compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #135 out of 944 companies for 3-Year ROIIC %. This places Johnson & Johnson in the top 14% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.64. Johnson & Johnson's value of 64.04 is 1661.8% above this benchmark. While the company's 10-year median is 0.50 vs. the industry median of 3.64, 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 3-Year ROIIC % for a Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.64, based on 944 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current 3-Year ROIIC % of 64.04 is 1661.8% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current 3-Year ROIIC % is 64.04, which is 12708% 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 (JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is $191.16, compared to a current price of $258.14 — trading 35% above its estimated fair value. The current 3-Year ROIIC % is 64.04, which is 12708% above median its 10-year median of 0.50 and 1661.8% above the Drug Manufacturers industry median of 3.64. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Johnson & Johnson (JNJ), the current 3-Year ROIIC % is 64.04 as of Dec. 2025. 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 $258.14 is trading 35% above its estimated GF Value™ of $191.16.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for JNJ:
3-Year ROIIC %: 64.04 (12708% above median its 10-year median of 0.50)
GF Value™: $191.16 vs. price of $258.14 (35% above fair value)
Industry Position: 1661.8% above the Drug Manufacturers median (#135 of 944)
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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