JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
NYSE:JCI - New York Stock Exchange, Inc. - IE00BY7QL619 - Common Stock - Currency: USD
Taking everything into account, JCI scores 4 out of 10 in our fundamental rating. JCI was compared to 42 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. While showing a medium growth rate, JCI is valued expensive at the moment. 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.
Each year in the past 5 years JCI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.91%, JCI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
JCI has a Return On Equity (15.85%) which is in line with its industry peers.
JCI's Return On Invested Capital of 7.89% is on the low side compared to the rest of the industry. JCI is outperformed by 64.29% 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 12.98%.
The last Return On Invested Capital (7.89%) for JCI is above the 3 year average (6.34%), which is a sign of increasing profitability.
| 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
JCI's Profit Margin of 11.78% is fine compared to the rest of the industry. JCI outperforms 69.05% of its industry peers.
JCI's Profit Margin has declined in the last couple of years.
JCI's Operating Margin of 14.94% is in line compared to the rest of the industry. JCI outperforms 52.38% of its industry peers.
In the last couple of years the Operating Margin of JCI has grown nicely.
With a Gross Margin value of 37.15%, JCI perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
JCI's Gross Margin has improved in the last couple of years.
| 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.
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.
Compared to 1 year ago, JCI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.22 indicates that JCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
JCI has a Altman-Z score of 2.22. This is in the lower half of the industry: JCI underperforms 76.19% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.43, JCI is in line with its industry, outperforming 54.76% of the companies in the same industry.
JCI has a Debt/Equity ratio of 0.60. This is a neutral value indicating JCI is somewhat dependend on debt financing.
The Debt to Equity ratio of JCI (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.09
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.96 indicates that JCI may have some problems paying its short term obligations.
JCI has a Current ratio of 0.96. This is amonst the worse of the industry: JCI underperforms 90.48% 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's Quick ratio of 0.81 is on the low side compared to the rest of the industry. JCI is outperformed by 78.57% 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.
Looking at the last year, JCI shows a very negative growth in Revenue. The Revenue has decreased by -20.76% in the last year.
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
The Earnings Per Share is expected to grow by 10.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-0.86%
EPS Next 2Y7.41%
EPS Next 3Y9.94%
EPS Next 5Y10.75%
Revenue Next Year-12.34%
Revenue Next 2Y-4.18%
Revenue Next 3Y-1.26%
Revenue Next 5Y3.16%
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.
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 25.26 indicates a quite expensive valuation of JCI.
The rest of the industry has a similar Price/Earnings ratio as JCI.
JCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.89, 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 64.29% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, JCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.89 |
4.2 Price Multiples
69.05% 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 | 22.22 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y7.41%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 1.16, JCI pays a better dividend. On top of this JCI pays more dividend than 85.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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.
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 Years3
Div Non Decr Years6
5.3 Sustainability
39.36% of the earnings are spent on dividend by JCI. This is a low number and sustainable payout ratio.
The dividend of JCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.36%
EPS Next 2Y7.41%
EPS Next 3Y9.94%
97.99
+0.06 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner Change-0.18%
Ins Owners0.27%
Ins Owner Change-2.65%
Market Cap64.69B
Analysts76.3
Price Target92.27 (-5.84%)
Short Float %1.49%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP39.36%
Div Incr Years3
Div Non Decr Years6
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)-4.23%
PT rev (3m)1.94%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.24%
EPS NY rev (1m)1.18%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.89 | ||
| P/S | 3.04 | ||
| P/FCF | 22.22 | ||
| P/OCF | 19.08 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.51 |
EPS(TTM)3.88
EY3.96%
EPS(NY)4.28
Fwd EY4.37%
FCF(TTM)4.41
FCFY4.5%
OCF(TTM)5.14
OCFY5.24%
SpS32.21
BVpS23.94
TBVpS-6.95
PEG (NY)N/A
PEG (5Y)1.94
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 | 2.22 |
F-Score7
WACC7.22%
ROIC/WACC1.09
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 Y-0.86%
EPS Next 2Y7.41%
EPS Next 3Y9.94%
EPS Next 5Y10.75%
Revenue 1Y (TTM)-20.76%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-15.27%
Revenue Next Year-12.34%
Revenue Next 2Y-4.18%
Revenue Next 3Y-1.26%
Revenue Next 5Y3.16%
EBIT growth 1Y57.46%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year13.76%
EBIT Next 3Y11.36%
EBIT Next 5Y9.96%
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%