JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
NYSE:JCI - New York Stock Exchange, Inc. - IE00BY7QL619 - Common Stock - Currency: USD
Taking everything into account, JCI scores 4 out of 10 in our fundamental rating. JCI was compared to 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. JCI is valied quite expensively at the moment, while it does show a decent growth rate. Finally JCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year JCI was profitable.
JCI had a positive operating cash flow in the past year.
In the past 5 years JCI has always been profitable.
JCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JCI has a Return On Assets (5.91%) which is in line with its industry peers.
With a Return On Equity value of 15.85%, JCI perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
JCI's Return On Invested Capital of 7.89% is on the low side compared to the rest of the industry. JCI is outperformed by 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JCI is significantly below the industry average of 12.83%.
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's Profit Margin of 11.78% is fine compared to the rest of the industry. JCI outperforms 63.41% of its industry peers.
In the last couple of years the Profit Margin of JCI has declined.
The Operating Margin of JCI (14.94%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of JCI has grown nicely.
The Gross Margin of JCI (37.15%) is better than 60.98% of its industry peers.
JCI's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for JCI has been reduced compared to 1 year ago.
JCI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, JCI has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.34, JCI is doing worse than 80.49% of the companies in the same industry.
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.
JCI has a Debt to FCF ratio of 3.43. This is in the better half of the industry: JCI outperforms 60.98% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.11
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.96 indicates that JCI may have some problems paying its short term obligations.
JCI has a worse Current ratio (0.96) than 92.68% of its industry peers.
A Quick Ratio of 0.81 indicates that JCI may have some problems paying its short term obligations.
The Quick ratio of JCI (0.81) is worse than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
JCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.91%, which is quite good.
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 -14.34% in the last year.
The Revenue has been decreasing by -0.86% on average over the past years.
EPS 1Y (TTM)8.91%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)-14.34%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-16.3%
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.
Based on estimates for the next years, JCI will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y0.01%
EPS Next 2Y7.94%
EPS Next 3Y10.61%
EPS Next 5Y11.04%
Revenue Next Year-11.84%
Revenue Next 2Y-3.8%
Revenue Next 3Y-1.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
JCI is valuated quite expensively with a Price/Earnings ratio of 28.09.
JCI's Price/Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 70.73% of the companies in the same industry.
JCI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 24.63 indicates a rather expensive valuation of JCI.
Compared to the rest of the industry, the Price/Forward 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.
JCI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JCI is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
JCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 19.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JCI does not grow enough to justify the current Price/Earnings ratio.
JCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3409.63
PEG (5Y)2.15
EPS Next 2Y7.94%
EPS Next 3Y10.61%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.39%.
JCI's Dividend Yield is rather good when compared to the industry average which is at 1.15. JCI pays more dividend than 82.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, JCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
As JCI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y7.94%
EPS Next 3Y10.61%
106.48
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change0.46%
Ins Owners0.24%
Ins Owner Change-4.52%
Market Cap70.07B
Analysts74.07
Price Target110.41 (3.69%)
Short Float %1.34%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)4.45%
PT rev (3m)19.66%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.13%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 24.63 | ||
| P/S | 3.3 | ||
| P/FCF | 24.07 | ||
| P/OCF | 20.67 | ||
| P/B | 4.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.9 |
EPS(TTM)3.79
EY3.56%
EPS(NY)4.32
Fwd EY4.06%
FCF(TTM)4.42
FCFY4.15%
OCF(TTM)5.15
OCFY4.84%
SpS32.31
BVpS24.02
TBVpS-6.97
PEG (NY)3409.63
PEG (5Y)2.15
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
WACC7.08%
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)8.91%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%-7.89%
EPS Next Y0.01%
EPS Next 2Y7.94%
EPS Next 3Y10.61%
EPS Next 5Y11.04%
Revenue 1Y (TTM)-14.34%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-16.3%
Revenue Next Year-11.84%
Revenue Next 2Y-3.8%
Revenue Next 3Y-1.07%
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%