JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - NYSE:JCI - IE00BY7QL619 - Common Stock
108.54 USD
-2.64 (-2.37%)
108.69 USD
+0.15 (+0.14%)
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. JCI is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years JCI has been profitable.
Each year in the past 5 years JCI had a positive operating cash flow.
1.2 Ratios
JCI's Return On Assets of 5.14% is in line compared to the rest of the industry. JCI outperforms 43.90% of its industry peers.
Looking at the Return On Equity, with a value of 14.09%, JCI is in line with its industry, outperforming 58.54% of the companies in the same industry.
JCI has a worse Return On Invested Capital (6.37%) than 70.73% of its industry peers.
JCI had an Average Return On Invested Capital over the past 3 years of 6.34%. This is significantly below the industry average of 12.70%.
The last Return On Invested Capital (6.37%) for JCI is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.09% | ||
| ROIC | 6.37% |
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
Looking at the Profit Margin, with a value of 11.11%, JCI is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
JCI's Profit Margin has declined in the last couple of years.
JCI has a Operating Margin (12.98%) which 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 (38.13%) is better than 68.29% of its industry peers.
In the last couple of years the Gross Margin of JCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.98% | ||
| PM (TTM) | 11.11% | ||
| GM | 38.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JCI is destroying 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.
JCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that JCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.26, JCI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
The Debt to FCF ratio of JCI is 3.56, which is a good value as it means it would take JCI, 3.56 years of fcf income to pay off all of its debts.
JCI has a Debt to FCF ratio (3.56) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.61 indicates that JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.89
WACC7.17%
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.
Looking at the Current ratio, with a value of 0.96, JCI is doing worse than 92.68% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that JCI may have some problems paying its short term obligations.
JCI has a Quick ratio of 0.81. This is in the lower half of the industry: JCI underperforms 75.61% 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 8.91% over the past year.
JCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.04% yearly.
The Revenue for JCI has decreased by -25.43% 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)8.91%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)-25.43%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-16.3%
3.2 Future
Based on estimates for the next years, JCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
Based on estimates for the next years, JCI will show a small growth in Revenue. The Revenue will grow by 2.52% on average per year.
EPS Next Y1.54%
EPS Next 2Y9.52%
EPS Next 3Y11.88%
EPS Next 5Y10.97%
Revenue Next Year-11.91%
Revenue Next 2Y-3.67%
Revenue Next 3Y-0.78%
Revenue Next 5Y2.52%
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.
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
Based on the Price/Earnings ratio of 28.64, the valuation of JCI can be described as expensive.
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.
The average S&P500 Price/Earnings ratio is at 27.57. JCI is around the same levels.
The Price/Forward Earnings ratio is 24.39, which indicates a rather expensive current valuation of JCI.
Based on the Price/Forward Earnings ratio, JCI is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of JCI to the average of the S&P500 Index (23.09), we can say JCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JCI is valued a bit more expensive than the industry average as 78.05% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.58 | ||
| EV/EBITDA | 24.4 |
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.
The decent profitability rating of JCI may justify a higher PE ratio.
PEG (NY)18.56
PEG (5Y)2.2
EPS Next 2Y9.52%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
JCI's Dividend Yield is rather good when compared to the industry average which is at 1.25. JCI pays more dividend than 80.49% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of JCI is nicely growing with an annual growth rate of 6.63%!
JCI has been paying a dividend for at least 10 years, so it has 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 43.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
JCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.93%
EPS Next 2Y9.52%
EPS Next 3Y11.88%
108.54
-2.64 (-2.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.98%
Inst Owner Change-0.19%
Ins Owners0.24%
Ins Owner Change-1.99%
Market Cap71.03B
Revenue(TTM)20.08B
Net Income(TTM)2.23B
Analysts74.07
Price Target115.59 (6.5%)
Short Float %3.88%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP43.93%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.91%
Min EPS beat(2)2.66%
Max EPS beat(2)3.16%
EPS beat(4)4
Avg EPS beat(4)4.76%
Min EPS beat(4)2.66%
Max EPS beat(4)7.63%
EPS beat(8)6
Avg EPS beat(8)2.5%
EPS beat(12)7
Avg EPS beat(12)1.63%
EPS beat(16)8
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)-0.26%
Revenue beat(4)2
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-0.93%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)0.49%
PT rev (3m)4.7%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 24.39 | ||
| P/S | 3.54 | ||
| P/FCF | 24.58 | ||
| P/OCF | 21.11 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.4 |
EPS(TTM)3.79
EY3.49%
EPS(NY)4.45
Fwd EY4.1%
FCF(TTM)4.42
FCFY4.07%
OCF(TTM)5.14
OCFY4.74%
SpS30.69
BVpS24.19
TBVpS-7.24
PEG (NY)18.56
PEG (5Y)2.2
Graham Number45.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.09% | ||
| ROCE | 8.4% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 18.68% | ||
| OM | 12.98% | ||
| PM (TTM) | 11.11% | ||
| GM | 38.13% | ||
| FCFM | 14.39% |
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%
ROICexgc growth 3Y-13.87%
ROICexgc 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 66.39% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.3% | ||
| Profit Quality | 129.54% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.26 |
F-Score7
WACC7.17%
ROIC/WACC0.89
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 Y1.54%
EPS Next 2Y9.52%
EPS Next 3Y11.88%
EPS Next 5Y10.97%
Revenue 1Y (TTM)-25.43%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-16.3%
Revenue Next Year-11.91%
Revenue Next 2Y-3.67%
Revenue Next 3Y-0.78%
Revenue Next 5Y2.52%
EBIT growth 1Y2.68%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year15%
EBIT Next 3Y12.44%
EBIT Next 5Y9.16%
FCF growth 1Y95.01%
FCF growth 3Y-6.18%
FCF growth 5Y20.42%
OCF growth 1Y67.36%
OCF growth 3Y-5.6%
OCF growth 5Y11.44%