JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - NYSE:JCI - IE00BY7QL619 - Common Stock
105.55 USD
-2.21 (-2.05%)
103.121 USD
-2.43 (-2.3%)
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 has a Return On Assets (5.14%) which is in line with its industry peers.
JCI has a Return On Equity (14.09%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.37%, JCI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for JCI is significantly below the industry average of 12.73%.
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.
JCI's Operating Margin has improved in the last couple of years.
JCI has a better Gross Margin (38.13%) than 68.29% of its industry peers.
JCI's Gross Margin has improved in the last couple of years.
| 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.
JCI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for JCI has been reduced compared to 5 years ago.
JCI has a worse debt/assets ratio than last year.
2.2 Solvency
JCI has an Altman-Z score of 2.17. 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.
The Altman-Z score of JCI (2.17) is worse than 82.93% of its industry peers.
JCI has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as JCI would need 3.56 years to pay back of all of its debts.
JCI has a Debt to FCF ratio (3.56) which is in line with its industry peers.
JCI has a Debt/Equity ratio of 0.61. This is a neutral value indicating JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.89
WACC7.16%
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.
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.
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
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.
The Earnings Per Share has been growing by 13.04% on average over the past years. This is quite good.
JCI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.43%.
Measured over the past years, JCI shows a decrease in Revenue. The Revenue has been decreasing by -0.86% on average per year.
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
JCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.97% yearly.
JCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.52% yearly.
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
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 27.85.
Based on the Price/Earnings ratio, JCI is valued a bit more expensive than 68.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. JCI is around the same levels.
The Price/Forward Earnings ratio is 23.72, which indicates a rather expensive current valuation of JCI.
JCI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 68.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. JCI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.85 | ||
| Fwd PE | 23.72 |
4.2 Price Multiples
78.05% of the companies in the same industry are cheaper than JCI, based on the Enterprise Value to EBITDA ratio.
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 | 23.9 | ||
| EV/EBITDA | 23.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)18.05
PEG (5Y)2.14
EPS Next 2Y9.52%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.23, JCI pays a better dividend. On top of this JCI pays more dividend than 80.49% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of JCI grows each year by 6.63%, which is quite nice.
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
43.93% of the earnings are spent on dividend by JCI. 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%
105.55
-2.21 (-2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.98%
Inst Owner Change-0.16%
Ins Owners0.24%
Ins Owner Change-1.99%
Market Cap69.07B
Analysts74.07
Price Target115.59 (9.51%)
Short Float %3.88%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)9.36%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)3.54%
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 | 27.85 | ||
| Fwd PE | 23.72 | ||
| P/S | 3.44 | ||
| P/FCF | 23.9 | ||
| P/OCF | 20.53 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.29 |
EPS(TTM)3.79
EY3.59%
EPS(NY)4.45
Fwd EY4.22%
FCF(TTM)4.42
FCFY4.18%
OCF(TTM)5.14
OCFY4.87%
SpS30.69
BVpS24.19
TBVpS-7.24
PEG (NY)18.05
PEG (5Y)2.14
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%
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 Turnover0.46
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 | 2.17 |
F-Score7
WACC7.16%
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%