JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JCI - IE00BY7QL619 - Common Stock
122.31 USD
+2.56 (+2.14%)
122.31 USD
0 (0%)
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 has a great profitability rating, there are quite some concerns on its financial health. 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.
In the past year JCI had a positive cash flow from operations.
In the past 5 years JCI has always been profitable.
JCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of JCI (8.67%) is better than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 25.46%, JCI belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.19%, JCI is in line with its industry, outperforming 52.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JCI is below the industry average of 12.61%.
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's Profit Margin of 13.95% is fine compared to the rest of the industry. JCI outperforms 73.81% of its industry peers.
JCI's Profit Margin has improved in the last couple of years.
JCI has a Operating Margin of 11.99%. This is comparable to the rest of the industry: JCI outperforms 50.00% of its industry peers.
JCI's Operating Margin has improved in the last couple of years.
JCI has a Gross Margin of 36.41%. This is in the better half of the industry: JCI outperforms 61.90% of its industry peers.
In the last couple of years the Gross Margin of JCI has grown nicely.
| 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.
JCI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, JCI has less shares outstanding
JCI has a worse debt/assets ratio than last year.
2.2 Solvency
JCI has an Altman-Z score of 2.60. 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 2.60, JCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of JCI is 13.92, which is on the high side as it means it would take JCI, 13.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JCI (13.92) is worse than 69.05% of its industry peers.
JCI has a Debt/Equity ratio of 0.72. This is a neutral value indicating JCI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, JCI is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 13.92 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.28
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.93 indicates that JCI may have some problems paying its short term obligations.
JCI's Current ratio of 0.93 is on the low side compared to the rest of the industry. JCI is outperformed by 92.86% 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.
JCI's Quick ratio of 0.76 is on the low side compared to the rest of the industry. JCI is outperformed by 83.33% 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.
The Earnings Per Share has been growing by 10.87% on average over the past years. This is quite good.
JCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.81%.
JCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.12% yearly.
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
JCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
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 Year5.75%
Revenue Next 2Y5.64%
Revenue Next 3Y5.48%
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.
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
With a Price/Earnings ratio of 32.44, JCI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, JCI is valued a bit more expensive than 73.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of JCI to the average of the S&P500 Index (26.51), we can say JCI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 26.32, the valuation of JCI can be described as expensive.
Based on the Price/Forward Earnings ratio, JCI is valued a bit more expensive than 69.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. JCI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 26.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 78.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, JCI is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.28 | ||
| EV/EBITDA | 22.19 |
4.3 Compensation for Growth
JCI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
JCI has a very decent profitability rating, which may justify a higher PE ratio.
JCI's earnings are expected to grow with 17.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)2.98
EPS Next 2Y19.74%
EPS Next 3Y17.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, JCI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.72, JCI pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.00, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
On average, the dividend of JCI grows each year by 7.84%, which is quite nice.
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
JCI pays out 29.66% of its income as dividend. This is a sustainable payout ratio.
JCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.66%
EPS Next 2Y19.74%
EPS Next 3Y17.93%
122.31
+2.56 (+2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change-4.19%
Ins Owners0.26%
Ins Owner Change0.13%
Market Cap74.75B
Revenue(TTM)23.60B
Net Income(TTM)3.29B
Analysts74.62
Price Target132.39 (8.24%)
Short Float %3.17%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.53
Dividend Growth(5Y)7.84%
DP29.66%
Div Incr Years4
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.28%
Min EPS beat(2)2.66%
Max EPS beat(2)3.91%
EPS beat(4)4
Avg EPS beat(4)4.34%
Min EPS beat(4)2.66%
Max EPS beat(4)7.63%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)1.98%
EPS beat(16)9
Avg EPS beat(16)1.35%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.99%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)1.59%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)4
Avg Revenue beat(12)-0.73%
Revenue beat(16)5
Avg Revenue beat(16)-0.93%
PT rev (1m)2.7%
PT rev (3m)15.1%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)3.84%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 26.32 | ||
| P/S | 3.17 | ||
| P/FCF | 105.28 | ||
| P/OCF | 65.34 | ||
| P/B | 5.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.19 |
EPS(TTM)3.77
EY3.08%
EPS(NY)4.65
Fwd EY3.8%
FCF(TTM)1.16
FCFY0.95%
OCF(TTM)1.87
OCFY1.53%
SpS38.61
BVpS21.15
TBVpS-11.98
PEG (NY)1.4
PEG (5Y)2.98
Graham Number42.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 25.46% | ||
| ROCE | 10.47% | ||
| ROIC | 9.19% | ||
| ROICexc | 9.32% | ||
| ROICexgc | 35.92% | ||
| OM | 11.99% | ||
| PM (TTM) | 13.95% | ||
| GM | 36.41% | ||
| FCFM | 3.01% |
ROA(3y)5.68%
ROA(5y)4.92%
ROE(3y)15.74%
ROE(5y)13.19%
ROIC(3y)8.01%
ROIC(5y)7.72%
ROICexc(3y)8.17%
ROICexc(5y)7.97%
ROICexgc(3y)29.7%
ROICexgc(5y)30.18%
ROCE(3y)9.1%
ROCE(5y)8.72%
ROICexgc growth 3Y8.04%
ROICexgc growth 5Y10.93%
ROICexc growth 3Y8.43%
ROICexc growth 5Y12.67%
OM growth 3Y8.13%
OM growth 5Y8.9%
PM growth 3Y32.06%
PM growth 5Y37.6%
GM growth 3Y3.36%
GM growth 5Y1.86%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 13.92 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 50.17% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 30.98% | ||
| Profit Quality | 21.57% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.6 |
F-Score6
WACC7.18%
ROIC/WACC1.28
Cap/Depr(3y)58.09%
Cap/Depr(5y)62.18%
Cap/Sales(3y)2%
Cap/Sales(5y)2.14%
Profit Quality(3y)68.76%
Profit Quality(5y)83.09%
High Growth Momentum
Growth
EPS 1Y (TTM)1.62%
EPS 3Y7.79%
EPS 5Y10.87%
EPS Q2Q%-1.56%
EPS Next Y23.24%
EPS Next 2Y19.74%
EPS Next 3Y17.93%
EPS Next 5Y15.75%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.12%
Sales Q2Q%-12.88%
Revenue Next Year5.75%
Revenue Next 2Y5.64%
Revenue Next 3Y5.48%
Revenue Next 5Y5.1%
EBIT growth 1Y17.05%
EBIT growth 3Y5.65%
EBIT growth 5Y10.13%
EBIT Next Year46.83%
EBIT Next 3Y20.74%
EBIT Next 5Y13.93%
FCF growth 1Y-55.57%
FCF growth 3Y-20.14%
FCF growth 5Y-16.75%
OCF growth 1Y-45.32%
OCF growth 3Y-16.8%
OCF growth 5Y-12.41%
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 32.44 and the Price/Book (PB) ratio is 5.78.
How sustainable is the dividend of JOHNSON CONTROLS INTERNATION (JCI) stock?
The dividend rating of JOHNSON CONTROLS INTERNATION (JCI) is 6 / 10 and the dividend payout ratio is 29.66%.