JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JCI - IE00BY7QL619 - Common Stock
113.658 USD
-0.85 (-0.74%)
Overall JCI gets a fundamental rating of 4 out of 10. We evaluated JCI against 42 industry peers in the Building Products industry. While JCI belongs to the best of the industry regarding profitability, there are concerns on its financial health. JCI is quite expensive at the moment. It does show a decent growth rate. 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.
- Each year in the past 5 years JCI has been profitable.
- JCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.67%, JCI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- With an excellent Return On Equity value of 25.46%, JCI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
- JCI's Return On Invested Capital of 9.19% is in line compared to the rest of the industry. JCI outperforms 52.38% of its industry peers.
- JCI had an Average Return On Invested Capital over the past 3 years of 8.01%. This is below the industry average of 12.68%.
- The last Return On Invested Capital (9.19%) for JCI is above the 3 year average (8.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 25.46% | ||
| ROIC | 9.19% |
ROA(3y)5.68%
ROA(5y)4.92%
ROE(3y)15.74%
ROE(5y)13.19%
ROIC(3y)8.01%
ROIC(5y)7.72%
1.3 Margins
- JCI has a better Profit Margin (13.95%) than 73.81% of its industry peers.
- JCI's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 11.99%, JCI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of JCI has grown nicely.
- The Gross Margin of JCI (36.41%) is better than 61.90% of its industry peers.
- JCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.99% | ||
| PM (TTM) | 13.95% | ||
| GM | 36.41% |
OM growth 3Y8.13%
OM growth 5Y8.9%
PM growth 3Y32.06%
PM growth 5Y37.6%
GM growth 3Y3.36%
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.
- Compared to 1 year ago, JCI has less shares outstanding
- JCI has less shares outstanding than it did 5 years ago.
- JCI has a worse debt/assets ratio than last year.
2.2 Solvency
- JCI has an Altman-Z score of 2.52. 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.
- JCI has a worse Altman-Z score (2.52) than 69.05% of its industry peers.
- JCI has a debt to FCF ratio of 13.92. This is a negative value and a sign of low solvency as JCI would need 13.92 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 13.92, JCI is doing worse than 69.05% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that JCI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, JCI is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 13.92 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.26
WACC7.27%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that JCI may have some problems paying its short term obligations.
- With a Current ratio value of 0.93, JCI is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
- JCI has a Quick Ratio of 0.93. 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's Quick ratio of 0.76 is on the low side compared to the rest of the industry. JCI is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- JCI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.62%.
- The Earnings Per Share has been growing by 10.87% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.81% in the past year.
- The Revenue has been growing slightly by 1.12% on average over the past years.
EPS 1Y (TTM)1.62%
EPS 3Y7.79%
EPS 5Y10.87%
EPS Q2Q%-1.56%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.12%
Sales Q2Q%-12.88%
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 15.75% on average per year.
- JCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y23.24%
EPS Next 2Y19.74%
EPS Next 3Y17.93%
EPS Next 5Y15.75%
Revenue Next Year5.81%
Revenue Next 2Y5.65%
Revenue Next 3Y5.47%
Revenue Next 5Y5.1%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 30.15, the valuation of JCI can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, JCI is valued at the same level.
- A Price/Forward Earnings ratio of 24.46 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 61.90% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, JCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 24.46 |
4.2 Price Multiples
- 73.81% of the companies in the same industry are cheaper than JCI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, JCI is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.83 | ||
| EV/EBITDA | 21.33 |
4.3 Compensation for Growth
- JCI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of JCI may justify a higher PE ratio.
- A more expensive valuation may be justified as JCI's earnings are expected to grow with 17.93% in the coming years.
PEG (NY)1.3
PEG (5Y)2.77
EPS Next 2Y19.74%
EPS Next 3Y17.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.42%, JCI has a reasonable but not impressive dividend return.
- JCI's Dividend Yield is rather good when compared to the industry average which is at 0.67. JCI pays more dividend than 83.33% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- On average, the dividend of JCI grows each year by 7.84%, which is quite nice.
- 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)7.84%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
- JCI pays out 29.66% of its income as dividend. This is a sustainable payout ratio.
- The dividend of JCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.66%
EPS Next 2Y19.74%
EPS Next 3Y17.93%
JOHNSON CONTROLS INTERNATION / JCI FAQ
What is the ChartMill fundamental rating of JOHNSON CONTROLS INTERNATION (JCI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to JCI.
What is the valuation status for JCI stock?
ChartMill assigns a valuation rating of 2 / 10 to JOHNSON CONTROLS INTERNATION (JCI). This can be considered as Overvalued.
What is the profitability of JCI stock?
JOHNSON CONTROLS INTERNATION (JCI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of JOHNSON CONTROLS INTERNATION (JCI) stock?
The Price/Earnings (PE) ratio for JOHNSON CONTROLS INTERNATION (JCI) is 30.15 and the Price/Book (PB) ratio is 5.37.
How sustainable is the dividend of JOHNSON CONTROLS INTERNATION (JCI) stock?
The dividend rating of JOHNSON CONTROLS INTERNATION (JCI) is 7 / 10 and the dividend payout ratio is 29.66%.