Johnson & Johnson (NYSE:JNJ)

Price to Earnings (P/E) Ratio

The P/E ratio data starts from the period ending April 4, 2021, and shows an initial downward trend from 28.92 to 20.93 by April 3, 2022. Following this decline, there is a fluctuating pattern with a peak of 33.43 in April 2, 2023, which is notably high compared to prior values. After this peak, the ratio sharply decreases to a low of 9.46 in September 29, 2024, before recovering slightly to 18.02 by June 29, 2025. This volatility suggests significant variations in earnings relative to the stock price, indicating either fluctuating market valuation or changes in earnings performance over these periods.

Price to Operating Profit (P/OP) Ratio

This ratio shows a general downward trend over the entire period. Starting at 21.84 in April 4, 2021, the ratio declines steadily to a low of 15.69 in October 1, 2023. Thereafter, it experiences moderate fluctuations, ranging between approximately 16.96 and 19.04, but does not return to its initial higher levels. The overall decline suggests an improvement in operating profitability relative to price or a more conservative valuation by the market over time.

Price to Sales (P/S) Ratio

The P/S ratio begins at 5.15 in April 4, 2021, and generally exhibits a downward trajectory through April 2, 2023, reaching a low of 4.01. Post this date, the ratio varies modestly within a range predominantly between 4.19 and 4.84. The relative stability after the initial decline indicates a generally consistent relationship between market price and sales revenues, with a minor trend toward slightly lower valuations against sales.

Price to Book Value (P/BV) Ratio

Starting with a ratio of 6.46 in March 29, 2020, the P/BV ratio demonstrates a gradual decline through the subsequent periods, falling to 4.79 by March 30, 2025. Along the way, some short-term fluctuations appear, with intermittent rises above 6 in earlier years. The decreasing trend suggests a diminishing premium assigned by the market over the company's book value, potentially reflecting changes in asset valuation, investor sentiment, or capital structure.

Share Price

The share price showed significant volatility over the observed periods. Initially, it decreased slightly from 150.24 USD in March 2020 to 145.24 USD in September 2020. It then experienced a notable rise through 2021, peaking around 180.46 USD in April 2022. After reaching this peak, the share price declined steadily toward the end of 2022, falling to 158.24 USD by December. In 2023 and into mid-2024, the price fluctuated within a range of approximately 145.6 USD to 167.53 USD, with some recovery noted in mid-2024, ultimately ending at 169.56 USD by June 2025. This pattern indicates cycles of growth followed by corrections, with recent data suggesting a moderate upward trend towards mid-2025.

Earnings per Share (EPS)

EPS data was unavailable for early 2020 but showed a consistent upward trajectory starting in April 2021 at 5.6 USD. This growth continued steadily through 2021 and early 2022, reaching a peak of 7.94 USD in April 2022 and hovering around 7.33 to 6.89 USD towards the end of 2022. Notably, there was a sharp increase in EPS starting from late 2022, rising dramatically to 14.38 USD in October 2023 and maintaining elevated levels close to 15.99 USD in September 2024. However, a sudden decline occurred by March 2025 to around 6.1 USD before the EPS rebounded to over 9 USD by June 2025. This indicates periods of strong profitability growth followed by some volatility in earnings.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrated structural fluctuations correlating inversely with EPS and share price movements. It started near 28.92 in April 2021 and systematically declined to the low 20s by early 2022, reflecting an improving earnings base relative to price. The ratio then spiked considerably to above 33 in early 2023, coinciding with a drop in EPS and share price adjustments. Subsequently, the P/E ratio experienced a notable drop to near 10 between late 2023 and mid-2024, aligning with the EPS surge and share price stabilization. Toward mid-2025, the ratio increased again to the range of 17–18, indicating some normalization of investor valuation amid EPS and price corrections. Overall, the P/E trends reveal a dynamic relationship between market valuation and earnings performance over the periods.

Share Price Trend

The share price experienced some volatility over the observed periods. Initially, it declined slightly from $150.24 to $145.24 in late 2020, followed by a recovery and peak at $180.46 in early 2022. Subsequently, the price drifted downward to a low of $145.6 in late 2023 before rebounding again to $169.56 by mid-2025. This pattern indicates periods of fluctuating market confidence or external factors impacting valuation.

Operating Profit per Share (OPPS)

Operating profit per share data starts appearing in the fourth quarter of 2020, showing a steady upward trajectory from $7.41 to $9.28 by the end of 2023. After this peak, values slightly declined but remained relatively stable around the $8.7 to $9.1 range through mid-2025. This signifies ongoing operational profitability improvements with some stabilization in recent quarters.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio fluctuated inversely to operating profits and share price movements. It decreased from around 21.84 in early 2021 to a low of 15.69 in late 2023, suggesting improving operational earnings relative to share price. However, the ratio increased again to approximately 19.04 by mid-2025, reflecting either rising share prices not matched by operating profit growth or a change in market valuation metrics.

Overall Insights

The data presents a company experiencing healthy growth in operating profitability per share over several years with corresponding but sometimes lagged adjustments in share price. The share price variability alongside a decreasing and then increasing P/OP ratio may indicate shifts in investor perceptions or external market conditions impacting valuation. Stability in operating profit per share towards the latter period suggests a mature, steady earnings base, while share price volatility highlights ongoing market uncertainties or sector-specific challenges.

The analysis of the quarterly financial data reveals several notable trends in the share price, sales per share, and price-to-sales (P/S) ratio over the observed periods.

Share Price

The share price exhibited variability across the provided timeframe. It started at a high of 150.24 USD in March 2020, followed by a slight decline until September 2020. Afterward, the share price generally increased, peaking near 180.46 USD in April 2022. Post this peak, the share price experienced fluctuations with periods of decline and recovery, oscillating mostly between 145.60 USD and 169.56 USD. Toward the end of the timeline, the share price maintained a moderate upward trend, reaching 169.56 USD in June 2025.

Sales Per Share

Sales per share data begins from December 2020 and demonstrates a steady and gradual increase over the quarters. Starting at 31.42 USD, the sales per share consistently rose, reaching 37.63 USD by June 2025. This steady improvement indicates sustained growth in revenue generation per share during the period analyzed.

Price-to-Sales (P/S) Ratio

The P/S ratio showed more variability compared to sales per share. Initial ratios from December 2020 hovered around 5.15, then displayed a decreasing trend through much of 2021 and 2022, dropping to 4.01 by October 2023. Subsequently, the ratio rebounded slightly, fluctuating within a range of approximately 4.19 to 4.84 toward the later periods. The decline in P/S ratio during the middle periods reflects a relative decrease in market valuation compared to sales, while the partial recovery towards the end may indicate improving market sentiment or valuation adjustments.

Overall, sales per share demonstrated consistent growth, reflecting improving revenue performance. Share price movements were more volatile, peaking in early 2022, followed by fluctuations through subsequent periods. The P/S ratio's decline and partial recovery suggest oscillations in investor valuation relative to sales, potentially influenced by broader market or company-specific factors. The data collectively indicate a stable revenue trend accompanied by moderate share price variability and fluctuating valuation metrics over the quarters analyzed.

Share Price Trend

The share price displays fluctuations over the analyzed periods, with an initial value of 150.24 US$ in March 2020, reaching a peak above 180 US$ in April 2022. Following this high, the price exhibits some volatility, generally ranging between approximately 145 US$ and 170 US$ towards the later periods. Notably, after April 2022, the price experiences several declines and recoveries but does not return to the earlier peak level within the observed timeframe.

Book Value Per Share (BVPS) Trend

BVPS shows a clear upward trend across the periods, starting at 23.27 US$ in March 2020 and gradually increasing to 32.58 US$ by June 2025. This steady rise indicates growth in the company's net asset value on a per-share basis, with occasional minor pullbacks but maintaining a generally consistent positive trajectory.

Price-to-Book Value Ratio (P/BV) Analysis

The P/BV ratio fluctuates within a band roughly between 4.79 and 6.72. There is an observed decline in the P/BV ratio from a peak of 6.72 in December 2020 to values closer to 5.0 in later periods, with some variability. This suggests that despite the rising BVPS, the market valuation relative to book value has moderated, potentially reflecting changes in market perceptions, investor sentiment, or adjustments in share price in relation to underlying book value growth.

Overall Financial Insights

The data indicates an overall increase in intrinsic value as measured by book value per share, alongside a share price that peaks mid-term but then settles into a somewhat lower range. The decreasing trend in the P/BV ratio highlights a relative market price correction compared to the book value growth. This pattern may imply a more conservative market valuation over time or increased emphasis on fundamental financial metrics by investors. Additionally, fluctuations in share price could be linked to broader market conditions or company-specific events not detailed in the data.