JNJ FCF Yield Analysis
Higher than 0% of HEALTHCARE sector peers
Updated 57h ago·SEC filings & market data
Key Takeaway
JNJ’s free cash flow yield is 3.1%, meaning for every $100 of market value, the company generates $3.10 in free cash flow.
Sector Performance
0th percentileJNJ
3.1%
Sector Median
3.6%
Sector Avg
3.6%
Prior Period
3.2%(Jul 2026)
Deep Analysis
JNJ’s free cash flow yield is 3.1%, meaning for every $100 of market value, the company generates $3.10 in free cash flow.
That trails the healthcare sector median of 3.6% and places JNJ at the 0th percentile among peers, the lowest in the comparison set. The year-over-year change is not available, but the quarter-over-quarter change is -3.1%, with the metric moving from 3.2% to 3.1% on the most recent readings. This combination — a yield below the sector median and a recent decline — points to weaker cash return relative to price, with no sign of improvement. For investors, that suggests reduced downside protection from cash flows and a possible overvaluation risk. The metric directly supports the overall CAUTIOUS verdict, as a low and falling free cash flow yield does not favor adding exposure at current levels.
Frequently Asked Questions
What does the FCF Yield tell investors about JNJ?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does JNJ's FCF Yield compare to its sector?
JNJ's FCF Yield of 3.1% compares to a HEALTHCARE sector median of 3.6%, placing it in the 0th percentile.
Who are JNJ's closest peers by FCF Yield?
The closest HEALTHCARE peers by FCF Yield include: UNH (4.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master JNJ's Valuation
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View full JNJ research report →Closest Sector Peers
JNJ
3.1%
Sector Median
3.6%
Sector Avg
3.6%
How JNJ's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.