Johnson & Johnson (NYSE:JNJ)

Price to earnings (P/E) ratio

The P/E ratio shows notable fluctuations over the observed periods. Starting from a level around the high 20s to low 30s in early 2020 and 2021, the ratio experienced a marked decline to the low teens by late 2023 and early 2024. This suggests a significant change in market valuation relative to earnings during this time, possibly reflecting improved earnings or market price adjustments. However, after this decline, the ratio climbed back up towards the mid to high 20s again by early 2025, indicating renewed market optimism or changes in earnings trends.

Price to operating profit (P/OP) ratio

The P/OP ratio demonstrates a gradual downward trend from approximately 22 in early 2020 and 2021 to levels around 16 to 18 towards the end of the period, indicating a decreasing market valuation relative to operating profit. Some slight rebounds and fluctuations occur intermittently, but the overall trend points to a valuation compression on operating profit. This may reflect operational performance improvements or changing investor expectations.

Price to sales (P/S) ratio

The P/S ratio remains relatively stable throughout the periods but exhibits a mild declining trend. Starting around 5.1 in early 2020 and early 2021, it gradually decreases to levels close to 4.2 by early 2025. Occasional upticks are observed, although not sustained. This pattern may imply that the market is valuing sales slightly lower relative to price over time, potentially due to margin pressures or shifting revenue growth perceptions.

Price to book value (P/BV) ratio

The P/BV ratio shows a slightly declining and volatile pattern. It ranges from about 6.4 in early 2020 down to around 4.8 by early 2025, with several fluctuations throughout. Periods of decline are interspersed with minor recoveries, suggesting some variability in how the market values net assets. The general downward movement could indicate cautiousness regarding the company’s net asset valuation or changes in equity market conditions.

Overall insights

Across all ratios, the general trend is a moderate decline over the observed timespan, with some temporary rebounds. The reduction in valuation multiples especially noticeable in P/E and P/OP ratios suggests either improved profitability metrics or adjustments in market sentiment. The relative stability in price to sales indicates consistent revenue valuation, while price to book value's decline may point to shifting perceptions about asset quality or book equity. These trends collectively may signal evolving investor views on earnings growth, profitability, and asset valuation over the period analyzed.

The share price exhibited fluctuations over the analyzed periods. Initially, the price hovered around the 145 to 162 US$ range between early 2020 and early 2021, followed by a peak reaching approximately 180 US$ in April 2022. Subsequently, the price showed a declining trend towards the end of 2022, dropping to around 158 US$, before partially recovering and showing volatility between 145 US$ and 167 US$ through 2023 and into early 2024. During the most recent quarters of 2024 and early 2025, the share price ranged approximately between 155 US$ and 166 US$.

Earnings per share (EPS) data beginning in April 2021 shows an initial upward trend from 5.6 US$ to a peak near 7.94 US$ in March 2022. This was followed by fluctuations, including a notable decline to below 5 US$ in mid-2023. A significant surge occurred in late 2023 and early 2024, with EPS rising sharply to values near 16 US$, before experiencing another decline to approximately 5.84 US$ in early 2025. This pattern indicates periods of strong earnings growth interspersed with sharp decreases within a relatively short timeframe.

The price-to-earnings (P/E) ratio aligns with the observed EPS and share price movements. Initial ratios around 28 to 20 in 2021 decreased slightly through 2022 while EPS increased. A marked increase in the P/E ratio occurred mid-2023, reaching levels above 33, possibly reflecting anticipation or valuation adjustments despite lower EPS in that period. This was followed by a steep drop to values near 10 in late 2023 and early 2024, consistent with the abrupt EPS growth during that time. The P/E ratio then rose again towards 27 in early 2025, suggesting valuation adjustments accompanying the easing of EPS declines.

Overall, the data reflects a dynamic financial environment with share prices and earnings demonstrating sensitivity to underlying performance changes and market perceptions. The sharp EPS fluctuations and corresponding P/E ratio adjustments suggest episodic events impacting profitability and investor sentiment.

The quarterly financial data reveals several notable trends concerning share price, operating profit per share, and the price to operating profit (P/OP) ratio over the examined periods.

Share Price (US$)

The share price demonstrated initial volatility, beginning at 150.24 in March 2020 and experiencing a dip to 145.24 by September 2020. It then saw a steady rise, peaking at 180.46 in April 2022. Following this peak, the share price exhibited a declining trend with some fluctuations, dropping notably to 145.6 in October 2023 before recovering somewhat to around 155.38 by March 2025. Overall, the share price showed a cyclical pattern with a peak in early 2022 and subsequent moderate decreases, indicating periods of both investor optimism and caution.

Operating Profit per Share (US$)

Operating profit per share data begins from December 2020, showing a generally upward trajectory from 7.41 to a high of 9.28 in December 2023. Thereafter, a slight decline and stabilization around 8.6 to 8.9 occurred up to March 2025. This pattern suggests improving operational efficiency or profitability in the earlier periods, followed by a period of stabilization without significant growth towards the end of the timeframe analyzed.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio started at 21.84 in April 2021 and generally declined over time, reaching a low of 15.69 in October 2023. This decline indicates that the share price grew at a slower rate than operating profit per share or that the market placed relatively less premium on operating profits during this period. From late 2023 through early 2025, the P/OP ratio fluctuated modestly between 16.96 and 18.65, suggesting a stabilization in market valuation multiples relative to operating profit.

In summary, the data reflect a period of improving operating profitability accompanied by share price volatility. The decreasing P/OP ratio over the observed periods indicates a market adjustment, possibly reflecting changing investor sentiment or expectations about future growth. The stabilization in both operating profit per share and P/OP ratio toward the end of the period suggests a mature phase with less aggressive valuation changes.

Share Price Trend

The share price exhibited fluctuations over the observed period. Initially, it trended slightly downward from $150.24 in March 2020 to around $145.24 by September 2020, then experienced a recovery reaching a peak of $172.18 in July 2021. Following this peak, the price showed volatility with several ups and downs, including declines in the latter months of 2022 and early 2023, dropping to $145.60 in October 2023. Nonetheless, it recovered moderately toward early 2024, including a notable rise to approximately $165.86 in September 2024, before pulling back somewhat to $155.38 by March 2025.

Sales per Share Pattern

Sales per share data began in April 2021 at $31.42 and demonstrated a generally steady upward trend throughout the subsequent periods. From this starting point, the figure rose to approximately $37.13 by March 2025, indicating consistent growth in sales relative to the company's share count. There were minor fluctuations within this upward path but the overall trajectory remained positive and stable.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed noticeable variability across the timeline. Starting around 5.15 in April 2021, this metric gradually declined to values near 4.01 by October 2023, indicating a relative decrease in share price compared to sales achieved per share during that time. After this trough, the ratio increased again to approximately 4.55 in September 2024 before tapering slightly to 4.19 in March 2025. The trend suggests changing investor valuation multiples possibly influenced by market sentiment, growth expectations, or shifts in sales performance.

Overall Observations

During the observed periods, sales per share consistently increased, reflecting ongoing revenue growth on a per-share basis. The share price showed substantial volatility, reflecting dynamic market conditions or company-specific factors affecting investor perception and demand. The P/S ratio's fluctuations illustrate adjustments in market valuation relative to sales, potentially indicating periods of over- or under-valuation or changing expectations of future performance. Together, these patterns provide insight into both operational performance and market valuation dynamics over time.

The share price exhibits notable fluctuations over the observed periods. Initially, it declines from 150.24 US$ in March 2020 to a low of 145.24 US$ in September 2020, followed by a recovery and upward trend peaking at 180.46 US$ in April 2022. Subsequently, a period of volatility is observed, with the price decreasing towards late 2022, followed by partial recovery and fluctuations around the mid-150s to mid-160s range through the end of the data in March 2025.

The book value per share (BVPS) shows a general upward trajectory, indicating consistent growth in the company’s net asset value per share. Starting from 23.27 US$ in March 2020, BVPS increases steadily over time with minor periodic regressions, reaching a high of 32.46 US$ in March 2025. This suggests a strengthening asset base relative to shares outstanding.

The price-to-book value ratio (P/BV) demonstrates a pattern of moderate variability aligned with the share price and BVPS movements. Initially, the ratio declines from 6.46 in March 2020 to a low of 5.37 in December 2022, indicating a compression in market valuation relative to book value. It then experiences fluctuations, with a general downward tendency towards the end of the period, reaching 4.79 in March 2025. This decline in P/BV ratio may reflect adjustments in market sentiment, valuation reassessments, or relative growth rates between market price and book value.

Share Price

Experienced a decline in early 2020, peaked in mid-2022, followed by volatility and a gradual decrease toward early 2025.

Book Value per Share

Consistently increased over the period, indicating growth in net equity per share.

Price-to-Book Ratio

Generally trended downward, suggesting a decreasing market premium over book value, with fluctuations corresponding to share price and BVPS changes.

Overall, the data reflect a company with solid growth in its book value but facing variable market valuations as indicated by the fluctuating share price and declining P/BV ratio. The divergence between steady asset growth and declining valuation multiples may warrant further investigation into market conditions or company-specific factors influencing investor perceptions.