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. There are concerns on the financial health of JCI while its profitability can be described as average. JCI is quite expensive at the moment. It does show a decent growth rate. Finally 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 in line with its industry peers.
JCI has a Return On Equity of 15.85%. This is comparable to the rest of the industry: JCI outperforms 58.54% of its industry peers.
JCI has a Return On Invested Capital of 7.89%. This is in the lower half of the industry: JCI underperforms 60.98% 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 12.81%.
The 3 year average ROIC (6.34%) for JCI is below the current ROIC(7.89%), indicating increased profibility in the last year.
| 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
The Profit Margin of JCI (11.78%) is better than 65.85% of its industry peers.
JCI's Profit Margin has declined in the last couple of years.
JCI has a Operating Margin of 14.94%. This is comparable to the rest of the industry: JCI outperforms 53.66% of its industry peers.
JCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.15%, JCI is in the better half of the industry, outperforming 60.98% of the companies in the same 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JCI is creating some value.
The number of shares outstanding for JCI has been reduced compared to 1 year ago.
The number of shares outstanding for JCI has been reduced compared to 5 years ago.
The debt/assets ratio for JCI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.34 indicates that JCI is not a great score, but indicates 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 78.05% of the companies in the same industry.
JCI has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as JCI would need 3.43 years to pay back of all of its debts.
JCI has a better Debt to FCF ratio (3.43) than 60.98% of its industry peers.
JCI has a Debt/Equity ratio of 0.60. This is a neutral value indicating 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
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.96 indicates that JCI may have some problems paying its short term obligations.
The Current ratio of JCI (0.96) is worse than 92.68% of its industry peers.
JCI has a Quick 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.
The Quick ratio of JCI (0.81) is worse 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.
The Revenue for JCI has decreased by -20.76% in the past year. This is quite bad
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.
JCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y0.01%
EPS Next 2Y7.94%
EPS Next 3Y10.61%
EPS Next 5Y11.04%
Revenue Next Year-11.09%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.11%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 27.38.
Based on the Price/Earnings ratio, JCI is valued a bit more expensive than 65.85% of the companies in the same industry.
JCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.57, which indicates a rather expensive current valuation of JCI.
63.41% of the companies in the same industry are cheaper than JCI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.58. JCI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 24.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 68.29% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as JCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.01 | ||
| EV/EBITDA | 19.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of JCI may justify a higher PE ratio.
PEG (NY)3322.41
PEG (5Y)2.1
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 1.12. JCI pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, JCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of JCI grows each year by 6.63%, which is quite nice.
JCI has been paying a dividend for at least 10 years, so it has 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
39.36% of the earnings are spent on dividend by JCI. This is a low number and 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%
NYSE:JCI (7/15/2025, 3:29:09 PM)
106.22
-0.04 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.01%
Ins Owners0.24%
Ins Owner Change-4.97%
Market Cap69.90B
Analysts77.04
Price Target105.7 (-0.49%)
Short Float %1.38%
Short Ratio1.93
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)1.63%
PT rev (3m)9.71%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0.88%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 24.57 | ||
| P/S | 3.29 | ||
| P/FCF | 24.01 | ||
| P/OCF | 20.62 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.86 |
EPS(TTM)3.88
EY3.65%
EPS(NY)4.32
Fwd EY4.07%
FCF(TTM)4.42
FCFY4.16%
OCF(TTM)5.15
OCFY4.85%
SpS32.31
BVpS24.02
TBVpS-6.97
PEG (NY)3322.41
PEG (5Y)2.1
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 Y0.01%
EPS Next 2Y7.94%
EPS Next 3Y10.61%
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-11.09%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.11%
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%