JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - NYSE:JCI - IE00BY7QL619 - Common Stock
107.53 USD
-0.29 (-0.27%)
106.29 USD
-1.24 (-1.15%)
We assign a fundamental rating of 4 out of 10 to JCI. JCI was compared to 41 industry peers in the Building Products industry. There are concerns on the financial health of JCI while its profitability can be described as average. JCI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
JCI had positive earnings in the past year.
In the past year JCI had a positive cash flow from operations.
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
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 Return On Invested Capital of 6.37%. This is in the lower half of the industry: JCI underperforms 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JCI 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
Looking at the Profit Margin, with a value of 11.11%, JCI is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
JCI's Profit Margin has declined in the last couple of years.
JCI has a Operating Margin (12.98%) which is comparable to the rest of the industry.
JCI's Operating Margin has improved in the last couple of years.
JCI has a better Gross Margin (38.13%) than 68.29% of its industry peers.
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.
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
An Altman-Z score of 2.20 indicates that JCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
JCI's Altman-Z score of 2.20 is on the low side compared to the rest of the industry. JCI is outperformed by 78.05% of its industry peers.
JCI has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as JCI would need 3.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.56, JCI is in line with its industry, outperforming 56.10% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that JCI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, JCI is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.9
WACC7.08%
2.3 Liquidity
JCI has a Current Ratio of 0.96. This is a bad value and indicates that JCI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.96, JCI is doing worse than 92.68% of the companies in the same industry.
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
JCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.91%, which is quite good.
The Earnings Per Share has been growing by 13.04% on average over the past years. This is quite good.
Looking at the last year, JCI shows a very negative growth in Revenue. The Revenue has decreased by -25.43% in the last year.
The Revenue has been decreasing by -0.86% on average over the past years.
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
Based on estimates for the next years, JCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 28.37 indicates a quite expensive valuation of JCI.
68.29% of the companies in the same industry are cheaper than JCI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of JCI to the average of the S&P500 Index (27.30), we can say JCI is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.36, JCI is valued on the expensive side.
JCI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, JCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 24.36 |
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 | 24.35 | ||
| EV/EBITDA | 23.68 |
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.
JCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)23.86
PEG (5Y)2.18
EPS Next 2Y9.07%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.48%.
JCI's Dividend Yield is rather good when compared to the industry average which is at 1.13. JCI pays more dividend than 85.37% of the companies 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 | 1.48% |
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
JCI pays out 43.93% of its income as dividend. 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%
107.53
-0.29 (-0.27%)
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 Cap70.37B
Analysts74.07
Price Target115.03 (6.97%)
Short Float %4.33%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 | 28.37 | ||
| Fwd PE | 24.36 | ||
| P/S | 3.5 | ||
| P/FCF | 24.35 | ||
| P/OCF | 20.92 | ||
| P/B | 4.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.68 |
EPS(TTM)3.79
EY3.52%
EPS(NY)4.41
Fwd EY4.1%
FCF(TTM)4.42
FCFY4.11%
OCF(TTM)5.14
OCFY4.78%
SpS30.69
BVpS24.19
TBVpS-7.24
PEG (NY)23.86
PEG (5Y)2.18
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 | 2.2 |
F-Score7
WACC7.08%
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%