JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
NYSE:JCI - New York Stock Exchange, Inc. - IE00BY7QL619 - Common Stock - Currency: USD
JCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. JCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, JCI is valued expensive at the moment. JCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
JCI had positive earnings in the past year.
JCI had a positive operating cash flow in the past year.
In the past 5 years JCI has always been profitable.
Each year in the past 5 years JCI had a positive operating cash flow.
1.2 Ratios
JCI has a Return On Assets (5.91%) which is comparable to the rest of the industry.
The Return On Equity of JCI (15.85%) is better than 60.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.89%, JCI is doing worse than 60.98% of the companies in the same industry.
JCI had an Average Return On Invested Capital over the past 3 years of 6.34%. This is significantly below the industry average of 12.62%.
The last Return On Invested Capital (7.89%) for JCI is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.85% | ||
| ROIC | 7.89% |
ROA(3y)4%
ROA(5y)3.49%
ROE(3y)10.39%
ROE(5y)8.82%
ROIC(3y)6.34%
ROIC(5y)6%
1.3 Margins
JCI has a Profit Margin of 11.78%. This is in the better half of the industry: JCI outperforms 68.29% of its industry peers.
In the last couple of years the Profit Margin of JCI has declined.
JCI has a Operating Margin of 14.94%. This is comparable to the rest of the industry: JCI outperforms 51.22% of its industry peers.
In the last couple of years the Operating Margin of JCI has grown nicely.
The Gross Margin of JCI (37.15%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of JCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 11.78% | ||
| GM | 37.15% |
OM growth 3Y-3.83%
OM growth 5Y11.73%
PM growth 3Y2.41%
PM growth 5Y-20.69%
GM growth 3Y1.1%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
JCI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, JCI has less shares outstanding
JCI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JCI is higher compared to a year ago.
2.2 Solvency
JCI has an Altman-Z score of 2.34. This is not the best score and indicates that JCI is in the grey zone with still only limited risk for bankruptcy at the moment.
JCI has a Altman-Z score of 2.34. This is in the lower half of the industry: JCI underperforms 75.61% of its industry peers.
The Debt to FCF ratio of JCI is 3.43, which is a good value as it means it would take JCI, 3.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.43, JCI is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.11
WACC7.11%
2.3 Liquidity
JCI has a Current Ratio of 0.96. This is a bad value and indicates that JCI is not financially healthy enough and could expect problems in meeting its short term obligations.
JCI has a Current ratio of 0.96. This is amonst the worse of the industry: JCI underperforms 92.68% of its industry peers.
A Quick Ratio of 0.81 indicates that JCI may have some problems paying its short term obligations.
JCI has a worse Quick ratio (0.81) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.13% over the past year.
Measured over the past years, JCI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.04% on average per year.
Looking at the last year, JCI shows a very negative growth in Revenue. The Revenue has decreased by -20.76% in the last year.
JCI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.86% yearly.
EPS 1Y (TTM)15.13%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%5.13%
Revenue 1Y (TTM)-20.76%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-15.27%
3.2 Future
JCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-0.12%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
EPS Next 5Y11.04%
Revenue Next Year-11.14%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
JCI is valuated quite expensively with a Price/Earnings ratio of 27.50.
Compared to the rest of the industry, the Price/Earnings ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 65.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. JCI is around the same levels.
Based on the Price/Forward Earnings ratio of 24.77, the valuation of JCI can be described as rather expensive.
JCI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 65.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, JCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 24.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JCI is valued a bit more expensive than 73.17% of the companies in the same industry.
JCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.12 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
JCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.11
EPS Next 2Y7.77%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, JCI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.19, JCI pays a better dividend. On top of this JCI pays more dividend than 82.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, JCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of JCI is nicely growing with an annual growth rate of 6.63%!
JCI has paid a dividend for at least 10 years, which is a reliable track record.
JCI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.63%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
JCI pays out 39.36% of its income as dividend. This is a sustainable payout ratio.
JCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.36%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
106.71
+1.64 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.15%
Ins Owners0.24%
Ins Owner Change-4.95%
Market Cap70.22B
Analysts77.04
Price Target105.7 (-0.95%)
Short Float %1.24%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP39.36%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)3.16%
Max EPS beat(2)7.63%
EPS beat(4)4
Avg EPS beat(4)5.16%
Min EPS beat(4)3.16%
Max EPS beat(4)7.63%
EPS beat(8)5
Avg EPS beat(8)2.05%
EPS beat(12)6
Avg EPS beat(12)1.3%
EPS beat(16)7
Avg EPS beat(16)0.84%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.59%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)2.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)14.56%
PT rev (3m)9.65%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.74%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 24.77 | ||
| P/S | 3.3 | ||
| P/FCF | 24.12 | ||
| P/OCF | 20.71 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.94 |
EPS(TTM)3.88
EY3.64%
EPS(NY)4.31
Fwd EY4.04%
FCF(TTM)4.42
FCFY4.15%
OCF(TTM)5.15
OCFY4.83%
SpS32.31
BVpS24.02
TBVpS-6.97
PEG (NY)N/A
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.85% | ||
| ROCE | 10.4% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 23.62% | ||
| OM | 14.94% | ||
| PM (TTM) | 11.78% | ||
| GM | 37.15% | ||
| FCFM | 13.69% |
ROA(3y)4%
ROA(5y)3.49%
ROE(3y)10.39%
ROE(5y)8.82%
ROIC(3y)6.34%
ROIC(5y)6%
ROICexc(3y)6.58%
ROICexc(5y)6.25%
ROICexgc(3y)23.86%
ROICexgc(5y)23.9%
ROCE(3y)8.19%
ROCE(5y)7.69%
ROICexcg growth 3Y-13.87%
ROICexcg growth 5Y1.5%
ROICexc growth 3Y-4.43%
ROICexc growth 5Y10.29%
OM growth 3Y-3.83%
OM growth 5Y11.73%
PM growth 3Y2.41%
PM growth 5Y-20.69%
GM growth 3Y1.1%
GM growth 5Y1.86%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 64.38% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.48% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.34 |
F-Score7
WACC7.11%
ROIC/WACC1.11
Cap/Depr(3y)65.14%
Cap/Depr(5y)62.93%
Cap/Sales(3y)2.17%
Cap/Sales(5y)2.16%
Profit Quality(3y)91.89%
Profit Quality(5y)135.07%
High Growth Momentum
Growth
EPS 1Y (TTM)15.13%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%5.13%
EPS Next Y-0.12%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
EPS Next 5Y11.04%
Revenue 1Y (TTM)-20.76%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-15.27%
Revenue Next Year-11.14%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.66%
EBIT growth 1Y57.46%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year14%
EBIT Next 3Y11.58%
EBIT Next 5Y9.3%
FCF growth 1Y165.36%
FCF growth 3Y-6.18%
FCF growth 5Y20.42%
OCF growth 1Y101.31%
OCF growth 3Y-5.6%
OCF growth 5Y11.44%