JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
NYSE:JCI - New York Stock Exchange, Inc. - IE00BY7QL619 - Common Stock - Currency: USD
Taking everything into account, JCI scores 4 out of 10 in our fundamental rating. JCI was compared to 41 industry peers in the Building Products industry. JCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. JCI is valied quite expensively at the moment, while 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.
In the past year JCI had a positive cash flow from operations.
Each year in the past 5 years JCI has been profitable.
Each year in the past 5 years JCI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of JCI (5.91%) is comparable to the rest of the industry.
JCI has a Return On Equity of 15.85%. This is in the better half of the industry: JCI outperforms 60.98% of its industry peers.
The Return On Invested Capital of JCI (7.89%) is worse than 60.98% 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 12.62%.
The 3 year average ROIC (6.34%) for JCI is below the current ROIC(7.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.85% | ||
| ROIC | 7.89% |
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 11.78%, JCI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
In the last couple of years the Profit Margin of JCI has declined.
JCI has a Operating Margin of 14.94%. This is comparable to the rest of the industry: JCI outperforms 51.22% of its industry peers.
In the last couple of years the Operating Margin of JCI has grown nicely.
With a Gross Margin value of 37.15%, JCI perfoms like the industry average, outperforming 58.54% 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 | 14.94% | ||
| PM (TTM) | 11.78% | ||
| GM | 37.15% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), JCI is creating some value.
JCI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for JCI has been reduced compared to 5 years ago.
Compared to 1 year ago, JCI has a worse debt to assets ratio.
2.2 Solvency
JCI has an Altman-Z score of 2.34. 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.
JCI has a Altman-Z score of 2.34. This is in the lower half of the industry: JCI underperforms 78.05% of its industry peers.
The Debt to FCF ratio of JCI is 3.43, which is a good value as it means it would take JCI, 3.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.43, JCI is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
JCI has a Debt/Equity ratio of 0.60. This is a neutral value indicating JCI is somewhat dependend on debt financing.
JCI has a Debt to Equity ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.11
WACC7.11%
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.
JCI has a Current ratio of 0.96. This is amonst the worse of the industry: JCI underperforms 92.68% of its industry peers.
A Quick Ratio of 0.81 indicates that JCI may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, JCI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
| 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 15.13% 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.
Looking at the last year, JCI shows a very negative growth in Revenue. The Revenue has decreased by -20.76% in the last year.
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)15.13%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%5.13%
Revenue 1Y (TTM)-20.76%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-15.27%
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 11.04% on average per year.
JCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y-0.12%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
EPS Next 5Y11.04%
Revenue Next Year-11.14%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.66%
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 27.28, JCI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of JCI indicates a slightly more expensive valuation: JCI is more expensive than 63.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, JCI is valued at the same level.
JCI is valuated rather expensively with a Price/Forward Earnings ratio of 24.57.
63.41% of the companies in the same industry are cheaper than JCI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of JCI to the average of the S&P500 Index (21.76), we can say JCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.57 |
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 68.29% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as JCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.93 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
JCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.09
EPS Next 2Y7.77%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
JCI's Dividend Yield is rather good when compared to the industry average which is at 1.14. JCI pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, JCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
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 Years4
Div Non Decr Years7
5.3 Sustainability
39.36% 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.
DP39.36%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
105.85
-0.48 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.01%
Ins Owners0.24%
Ins Owner Change-4.97%
Market Cap69.65B
Analysts77.04
Price Target105.7 (-0.14%)
Short Float %1.24%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.49
Dividend Growth(5Y)6.63%
DP39.36%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)3.16%
Max EPS beat(2)7.63%
EPS beat(4)4
Avg EPS beat(4)5.16%
Min EPS beat(4)3.16%
Max EPS beat(4)7.63%
EPS beat(8)5
Avg EPS beat(8)2.05%
EPS beat(12)6
Avg EPS beat(12)1.3%
EPS beat(16)7
Avg EPS beat(16)0.84%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.59%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)2.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)14.56%
PT rev (3m)9.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.74%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.57 | ||
| P/S | 3.28 | ||
| P/FCF | 23.93 | ||
| P/OCF | 20.55 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.87 |
EPS(TTM)3.88
EY3.67%
EPS(NY)4.31
Fwd EY4.07%
FCF(TTM)4.42
FCFY4.18%
OCF(TTM)5.15
OCFY4.87%
SpS32.31
BVpS24.02
TBVpS-6.97
PEG (NY)N/A
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.85% | ||
| ROCE | 10.4% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 23.62% | ||
| OM | 14.94% | ||
| PM (TTM) | 11.78% | ||
| GM | 37.15% | ||
| FCFM | 13.69% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.43 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 64.38% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.48% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.34 |
F-Score7
WACC7.11%
ROIC/WACC1.11
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)15.13%
EPS 3Y11.73%
EPS 5Y13.04%
EPS Q2Q%5.13%
EPS Next Y-0.12%
EPS Next 2Y7.77%
EPS Next 3Y10.3%
EPS Next 5Y11.04%
Revenue 1Y (TTM)-20.76%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.86%
Sales Q2Q%-15.27%
Revenue Next Year-11.14%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.66%
EBIT growth 1Y57.46%
EBIT growth 3Y-4.81%
EBIT growth 5Y10.77%
EBIT Next Year14%
EBIT Next 3Y11.58%
EBIT Next 5Y9.3%
FCF growth 1Y165.36%
FCF growth 3Y-6.18%
FCF growth 5Y20.42%
OCF growth 1Y101.31%
OCF growth 3Y-5.6%
OCF growth 5Y11.44%