JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
NYSE:JCI - New York Stock Exchange, Inc. - IE00BY7QL619 - Common Stock - Currency: USD
JCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 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
JCI had positive earnings in the past year.
JCI had a positive operating cash flow in the past year.
JCI had positive earnings in each of the past 5 years.
JCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of JCI (4.16%) is worse than 70.00% of its industry peers.
JCI's Return On Equity of 11.01% is in line compared to the rest of the industry. JCI outperforms 42.50% of its industry peers.
JCI has a Return On Invested Capital of 6.10%. This is in the lower half of the industry: JCI underperforms 70.00% 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 13.20%.
| 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
With a Profit Margin value of 7.85%, JCI perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
JCI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.06%, JCI is in line with its industry, outperforming 45.00% of the companies in the same industry.
In the last couple of years the Operating Margin of JCI has grown nicely.
JCI has a Gross Margin (35.95%) which is in line with its industry peers.
In the last couple of years the Gross Margin of JCI has grown nicely.
| 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
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
JCI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JCI is higher compared to a year ago.
2.2 Solvency
JCI has an Altman-Z score of 2.09. 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.
Looking at the Altman-Z score, with a value of 2.09, JCI is doing worse than 75.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.83, JCI is doing worse than 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that JCI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, JCI is in line with its industry, outperforming 47.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.91
WACC6.69%
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.
With a Current ratio value of 1.02, JCI is not doing good in the industry: 92.50% of the companies in the same industry are doing better.
JCI has a Quick Ratio of 1.02. This is a bad value and indicates that JCI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.86, JCI is not doing good in the industry: 85.00% 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.
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.
The Revenue for JCI has decreased by -16.91% 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)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
The Earnings Per Share is expected to grow by 9.68% on average over the next years. This is quite good.
Based on estimates for the next years, JCI will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y-1.4%
EPS Next 2Y7.23%
EPS Next 3Y9.91%
EPS Next 5Y9.68%
Revenue Next Year-12.13%
Revenue Next 2Y-4.01%
Revenue Next 3Y-0.96%
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 decreasing.
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 22.21 indicates a rather expensive valuation of JCI.
JCI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. JCI is valued slightly cheaper when compared to this.
JCI is valuated rather expensively with a Price/Forward Earnings ratio of 19.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JCI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of JCI to the average of the S&P500 Index (22.68), we can say JCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
JCI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. JCI is more expensive than 72.50% of the companies in the same industry.
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 | 27.18 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y7.23%
EPS Next 3Y9.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, 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 1.10. JCI pays more dividend than 95.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, JCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
On average, the dividend of JCI grows each year by 6.63%, which is quite nice.
JCI has been paying a dividend for at least 10 years, so it has 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
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 2Y7.23%
EPS Next 3Y9.91%
85.28
-3.55 (-4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.25%
Inst Owner Change-0.79%
Ins Owners0.34%
Ins Owner Change-0.75%
Market Cap56.30B
Analysts75.56
Price Target90.51 (6.13%)
Short Float %1.44%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP56.74%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
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)0.25%
PT rev (3m)9.95%
EPS NQ rev (1m)3.46%
EPS NQ rev (3m)-12.37%
EPS NY rev (1m)1.97%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-2.72%
Revenue NQ rev (3m)-20.17%
Revenue NY rev (1m)-1.58%
Revenue NY rev (3m)-5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.99 | ||
| P/S | 2.53 | ||
| P/FCF | 27.18 | ||
| P/OCF | 21.74 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.52 |
EPS(TTM)3.84
EY4.5%
EPS(NY)4.27
Fwd EY5%
FCF(TTM)3.14
FCFY3.68%
OCF(TTM)3.92
OCFY4.6%
SpS33.76
BVpS24.09
TBVpS-6.78
PEG (NY)N/A
PEG (5Y)1.7
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 | 2.09 |
F-Score6
WACC6.69%
ROIC/WACC0.91
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-1.4%
EPS Next 2Y7.23%
EPS Next 3Y9.91%
EPS Next 5Y9.68%
Revenue 1Y (TTM)-16.91%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-10.96%
Revenue Next Year-12.13%
Revenue Next 2Y-4.01%
Revenue Next 3Y-0.96%
Revenue Next 5Y3.16%
EBIT growth 1Y-10.37%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year10.96%
EBIT Next 3Y10.67%
EBIT Next 5Y8.77%
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%