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 3 out of 10 in our fundamental rating. JCI was compared to 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
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
JCI has a Return On Assets of 4.16%. This is in the lower half of the industry: JCI underperforms 70.73% of its industry peers.
With a Return On Equity value of 11.01%, JCI perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
The Return On Invested Capital of JCI (6.10%) is worse 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 13.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 11.01% | ||
| ROIC | 6.1% |
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 7.85%, JCI is in line with its industry, outperforming 51.22% of the companies in the same industry.
JCI's Profit Margin has declined in the last couple of years.
JCI has a Operating Margin of 11.06%. This is comparable to the rest of the industry: JCI outperforms 43.90% of its industry peers.
JCI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.95%, JCI perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
JCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.06% | ||
| PM (TTM) | 7.85% | ||
| GM | 35.95% |
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.
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 2.02. 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 (2.02) than 73.17% of its industry peers.
The Debt to FCF ratio of JCI is 4.83, which is a neutral value as it means it would take JCI, 4.83 years of fcf income to pay off all of its debts.
JCI's Debt to FCF ratio of 4.83 is in line compared to the rest of the industry. JCI outperforms 41.46% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.85
WACC7.18%
2.3 Liquidity
JCI has a Current Ratio of 1.02. This is a normal value and indicates that JCI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of JCI (1.02) is worse than 90.24% of its industry peers.
A Quick Ratio of 0.86 indicates that JCI may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, JCI is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.97% over the past year.
The Earnings Per Share has been growing by 13.04% on average over the past years. This is quite good.
The Revenue for JCI has decreased by -16.91% in the past year. This is quite bad
The Revenue has been decreasing by -0.86% on average over the past years.
EPS 1Y (TTM)14.97%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%25.49%
Revenue 1Y (TTM)-16.91%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-10.96%
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 10.75% yearly.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-2.02%
EPS Next 2Y6.66%
EPS Next 3Y9.8%
EPS Next 5Y10.75%
Revenue Next Year-12.34%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.11%
Revenue Next 5Y3.16%
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
JCI is valuated rather expensively with a Price/Earnings ratio of 22.72.
JCI's Price/Earnings ratio is in line with the industry average.
JCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 20.67, JCI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as JCI.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, JCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
73.17% 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 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.81 | ||
| EV/EBITDA | 19.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y6.66%
EPS Next 3Y9.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, 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 1.25. JCI pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 Years3
Div Non Decr Years6
5.3 Sustainability
JCI pays out 56.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of JCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.74%
EPS Next 2Y6.66%
EPS Next 3Y9.8%
87.25
+3.35 (+3.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner Change0.44%
Ins Owners0.27%
Ins Owner Change-1.9%
Market Cap57.60B
Analysts76.3
Price Target92.27 (5.75%)
Short Float %1.6%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP56.74%
Div Incr Years3
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.61%
Min EPS beat(2)5.59%
Max EPS beat(2)7.63%
EPS beat(4)4
Avg EPS beat(4)4.96%
Min EPS beat(4)2.37%
Max EPS beat(4)7.63%
EPS beat(8)5
Avg EPS beat(8)1.82%
EPS beat(12)5
Avg EPS beat(12)0.95%
EPS beat(16)7
Avg EPS beat(16)0.99%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)1.59%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.3%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)-4.46%
PT rev (3m)2.2%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)3.63%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.67 | ||
| P/S | 2.58 | ||
| P/FCF | 27.81 | ||
| P/OCF | 22.25 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.51 |
EPS(TTM)3.84
EY4.4%
EPS(NY)4.22
Fwd EY4.84%
FCF(TTM)3.14
FCFY3.6%
OCF(TTM)3.92
OCFY4.5%
SpS33.76
BVpS24.09
TBVpS-6.78
PEG (NY)N/A
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 11.01% | ||
| ROCE | 7.94% | ||
| ROIC | 6.1% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 18.93% | ||
| OM | 11.06% | ||
| PM (TTM) | 7.85% | ||
| GM | 35.95% | ||
| FCFM | 9.29% |
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-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.83 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 66.58% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.86% | ||
| Profit Quality | 118.34% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.02 |
F-Score6
WACC7.18%
ROIC/WACC0.85
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)14.97%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%25.49%
EPS Next Y-2.02%
EPS Next 2Y6.66%
EPS Next 3Y9.8%
EPS Next 5Y10.75%
Revenue 1Y (TTM)-16.91%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-10.96%
Revenue Next Year-12.34%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.11%
Revenue Next 5Y3.16%
EBIT growth 1Y-10.37%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year13.76%
EBIT Next 3Y11.36%
EBIT Next 5Y9.96%
FCF growth 1Y191.28%
FCF growth 3Y-6.18%
FCF growth 5Y20.42%
OCF growth 1Y98.85%
OCF growth 3Y-5.6%
OCF growth 5Y11.44%