JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - NYSE:JCI - IE00BY7QL619 - Common Stock
108.69 USD
+0.21 (+0.19%)
108.772 USD
+0.08 (+0.08%)
JCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 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.
1. Profitability
1.1 Basic Checks
In the past year JCI was profitable.
In the past year JCI had a positive cash flow from operations.
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 (5.14%) which is comparable to the rest of the industry.
JCI has a Return On Equity (14.09%) which is in line with its industry peers.
JCI has a worse Return On Invested Capital (6.37%) 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 12.76%.
The 3 year average ROIC (6.34%) for JCI is below the current ROIC(6.37%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 11.11%, JCI is doing good in the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Profit Margin of JCI has declined.
With a Operating Margin value of 12.98%, JCI perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Operating Margin of JCI has grown nicely.
With a decent Gross Margin value of 38.13%, JCI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
In the last couple of years the Gross Margin of JCI has grown nicely.
| 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
JCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, JCI has less shares outstanding
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
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's Altman-Z score of 2.22 is on the low side compared to the rest of the industry. JCI is outperformed by 78.05% of its industry peers.
The Debt to FCF ratio of JCI is 3.56, which is a good value as it means it would take JCI, 3.56 years of fcf income to pay off all of its debts.
JCI has a Debt to FCF ratio of 3.56. This is comparable to the rest of the industry: JCI outperforms 56.10% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 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 | 2.22 |
ROIC/WACC0.9
WACC7.09%
2.3 Liquidity
A Current Ratio of 0.96 indicates that JCI may have some problems paying its short term obligations.
With a Current ratio value of 0.96, JCI is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that JCI may have some problems paying its short term obligations.
JCI has a Quick ratio of 0.81. This is in the lower half of the industry: JCI underperforms 78.05% 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 8.91% over the past year.
JCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.04% yearly.
The Revenue for JCI has decreased by -25.43% in the past year. This is quite bad
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
The Earnings Per Share is expected to grow by 10.97% 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 2.52% yearly.
EPS Next Y1.19%
EPS Next 2Y9.07%
EPS Next 3Y11.63%
EPS Next 5Y10.97%
Revenue Next Year-11.93%
Revenue Next 2Y-3.69%
Revenue Next 3Y-0.78%
Revenue Next 5Y2.52%
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.
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
With a Price/Earnings ratio of 28.68, JCI can be considered very expensive at the moment.
JCI's Price/Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 65.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. JCI is around the same levels.
JCI is valuated rather expensively with a Price/Forward Earnings ratio of 24.62.
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 68.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of JCI to the average of the S&P500 Index (22.86), we can say JCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 24.62 |
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 | 24.61 | ||
| EV/EBITDA | 23.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JCI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of JCI may justify a higher PE ratio.
PEG (NY)24.12
PEG (5Y)2.2
EPS Next 2Y9.07%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.47%.
Compared to an average industry Dividend Yield of 1.13, JCI pays a better dividend. On top of this JCI pays more dividend than 85.37% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of JCI is nicely growing with an annual growth rate of 6.63%!
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 2Y9.07%
EPS Next 3Y11.63%
108.69
+0.21 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.76%
Inst Owner Change0.34%
Ins Owners0.24%
Ins Owner Change-2.07%
Market Cap71.13B
Analysts74.07
Price Target115.03 (5.83%)
Short Float %4.36%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)0.57%
PT rev (3m)10.6%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)1.18%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 24.62 | ||
| P/S | 3.54 | ||
| P/FCF | 24.61 | ||
| P/OCF | 21.14 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.87 |
EPS(TTM)3.79
EY3.49%
EPS(NY)4.41
Fwd EY4.06%
FCF(TTM)4.42
FCFY4.06%
OCF(TTM)5.14
OCFY4.73%
SpS30.69
BVpS24.19
TBVpS-7.24
PEG (NY)24.12
PEG (5Y)2.2
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 | 2.22 |
F-Score7
WACC7.09%
ROIC/WACC0.9
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 Y1.19%
EPS Next 2Y9.07%
EPS Next 3Y11.63%
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-11.93%
Revenue Next 2Y-3.69%
Revenue Next 3Y-0.78%
Revenue Next 5Y2.52%
EBIT growth 1Y2.68%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year15.06%
EBIT Next 3Y12.31%
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%