JOHNSON CONTROLS INTERNATION (JCI)
IE00BY7QL619 - Common Stock
We assign a fundamental rating of 4 out of 10 to JCI. JCI was compared to 44 industry peers in the Building Products industry. While JCI is still in line with the averages on profitability rating, there are concerns on its financial health. JCI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
JCI had positive earnings in the past year.
In the past year JCI had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 4.82%, JCI is doing worse than 63.64% of the companies in the same industry.
With a Return On Equity value of 12.63%, JCI perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
JCI has a Return On Invested Capital of 5.92%. This is in the lower half of the industry: JCI underperforms 75.00% of its industry peers.
JCI had an Average Return On Invested Capital over the past 3 years of 4.78%. This is significantly below the industry average of 15.24%.
The 3 year average ROIC (4.78%) for JCI is below the current ROIC(5.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 12.63% | ||
| ROIC | 5.92% |
ROA(3y)3.03%
ROA(5y)5.39%
ROE(3y)7.45%
ROE(5y)12.26%
ROIC(3y)4.78%
ROIC(5y)4.15%
1.3 Margins
With a decent Profit Margin value of 7.74%, JCI is doing good in the industry, outperforming 61.36% of the companies in the same industry.
JCI's Profit Margin has declined in the last couple of years.
The Operating Margin of JCI (10.60%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of JCI has grown nicely.
JCI has a better Gross Margin (34.04%) than 61.36% of its industry peers.
JCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.6% | ||
| PM (TTM) | 7.74% | ||
| GM | 34.04% |
OM growth 3Y16.17%
OM growth 5Y3.68%
PM growth 3Y-36.52%
PM growth 5Y-3.01%
GM growth 3Y0.91%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JCI is destroying value.
Compared to 1 year ago, JCI has less shares outstanding
Compared to 5 years ago, JCI has less shares outstanding
Compared to 1 year ago, JCI has a worse debt to assets ratio.
2.2 Solvency
JCI has an Altman-Z score of 1.77. This is a bad value and indicates that JCI is not financially healthy and even has some risk of bankruptcy.
JCI's Altman-Z score of 1.77 is on the low side compared to the rest of the industry. JCI is outperformed by 84.09% of its industry peers.
The Debt to FCF ratio of JCI is 6.59, which is on the high side as it means it would take JCI, 6.59 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.59, JCI is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.53 indicates that JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.85
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.08 indicates that JCI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, JCI is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that JCI may have some problems paying its short term obligations.
JCI has a worse Quick ratio (0.80) than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.62% over the past year.
The Earnings Per Share has been growing slightly by 2.89% on average over the past years.
The Revenue has been growing slightly by 6.59% in the past year.
The Revenue has been growing slightly by 2.07% on average over the past years.
EPS 1Y (TTM)18.62%
EPS 3Y14.41%
EPS 5Y2.89%
EPS growth Q2Q21.18%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y1.82%
Revenue growth 5Y2.07%
Revenue growth Q2Q7.85%
3.2 Future
The Earnings Per Share is expected to grow by 12.79% on average over the next years. This is quite good.
JCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y18.84%
EPS Next 2Y15.23%
EPS Next 3Y14.21%
EPS Next 5Y12.79%
Revenue Next Year6.6%
Revenue Next 2Y5.65%
Revenue Next 3Y5.32%
Revenue Next 5Y5.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 16.30 indicates a correct valuation of JCI.
JCI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of JCI to the average of the S&P500 Index (24.97), we can say JCI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.03, the valuation of JCI can be described as correct.
Based on the Price/Forward Earnings ratio, JCI is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of JCI to the average of the S&P500 Index (20.05), we can say JCI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
JCI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.74 | ||
| EV/EBITDA | 12.83 |
4.3 Compensation for Growth
JCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
JCI's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)5.64
EPS Next 2Y15.23%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, JCI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, JCI pays a better dividend. On top of this JCI pays more dividend than 97.73% of the companies listed in the same industry.
JCI's Dividend Yield is comparable with the S&P500 average which is at 2.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of JCI is nicely growing with an annual growth rate of 11.71%!
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)11.71%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
JCI pays out 47.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
JCI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.11%
EPS Next 2Y15.23%
EPS Next 3Y14.21%
JOHNSON CONTROLS INTERNATION
NYSE:JCI (12/8/2023, 7:04:00 PM)
After market: 56.08 0 (0%)56.08
+0.58 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)5.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 12.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.6% | ||
| PM (TTM) | 7.74% | ||
| GM | 34.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.62%
EPS 3Y14.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.59%
Revenue growth 3Y1.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y