JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JCI - IE00BY7QL619 - Common Stock
120.28 USD
+3.54 (+3.03%)
119.01 USD
-1.27 (-1.06%)
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
- JCI had positive earnings in the past year.
- JCI had a positive operating cash flow in the past year.
- Each year in the past 5 years JCI has been profitable.
- In the past 5 years JCI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of JCI (8.67%) is better than 64.29% of its industry peers.
- JCI has a Return On Equity of 25.46%. This is amongst the best in the industry. JCI outperforms 80.95% of its industry peers.
- JCI has a Return On Invested Capital (9.19%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for JCI 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.
- The Operating Margin of JCI (11.99%) is comparable to the rest of the 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
- JCI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 2.55. 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.
- With a Altman-Z score value of 2.55, JCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 13.92, JCI is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
- JCI has a Debt/Equity ratio of 0.72. This is a neutral value indicating JCI is somewhat dependend on debt financing.
- JCI's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. JCI is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 13.92 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.23
WACC7.46%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that JCI may have some problems paying its short term obligations.
- The Current ratio of JCI (0.93) is worse than 95.24% of its industry peers.
- 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.
- The Quick ratio of JCI (0.76) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.62% 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 10.87% on average per year.
- Looking at the last year, JCI shows a small growth in Revenue. The Revenue has grown by 2.81% in the last 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.
- The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y23.58%
EPS Next 2Y19.79%
EPS Next 3Y17.76%
EPS Next 5Y15.75%
Revenue Next Year5.81%
Revenue Next 2Y5.65%
Revenue Next 3Y5.47%
Revenue Next 5Y5.1%
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 accelerating.
- 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
- A Price/Earnings ratio of 31.90 indicates a quite expensive valuation of JCI.
- Based on the Price/Earnings ratio, JCI is valued a bit more expensive than the industry average as 69.05% of the companies are valued more cheaply.
- JCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- JCI is valuated quite expensively with a Price/Forward Earnings ratio of 25.82.
- 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.
- JCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
- 76.19% of the companies in the same industry are cheaper than JCI, based on the Enterprise Value to EBITDA ratio.
- JCI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. JCI is more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.53 | ||
| EV/EBITDA | 21.7 |
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 17.76% in the coming years.
PEG (NY)1.35
PEG (5Y)2.93
EPS Next 2Y19.79%
EPS Next 3Y17.76%
5. Dividend
5.1 Amount
- JCI has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.66, JCI pays a better dividend. On top of this JCI pays more dividend than 83.33% of the companies listed in the same industry.
- JCI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
- The dividend of JCI is nicely growing with an annual growth rate of 7.84%!
- 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)7.84%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
- 29.66% 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.
DP29.66%
EPS Next 2Y19.79%
EPS Next 3Y17.76%
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 31.9 and the Price/Book (PB) ratio is 5.69.
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%.