JOHNSON CONTROLS INTERNATION (JCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JCI - IE00BY7QL619 - Common Stock
119.96 USD
+0.43 (+0.36%)
119.96 USD
0 (0%)
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 valied quite expensively at the moment, while it does show a decent growth rate. Finally JCI also has an excellent dividend rating.
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.
JCI had positive earnings in each of the past 5 years.
Each year in the past 5 years JCI had a positive operating cash flow.
1.2 Ratios
JCI's Return On Assets of 8.67% is fine compared to the rest of the industry. JCI outperforms 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.
JCI had an Average Return On Invested Capital over the past 3 years of 8.01%. This is below the industry average of 12.60%.
The 3 year average ROIC (8.01%) for JCI is below the current ROIC(9.19%), indicating increased profibility in the last year.
| 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 Profit Margin of 13.95%. This is in the better half of the industry: JCI outperforms 73.81% of its industry peers.
In the last couple of years the Profit Margin of JCI has grown nicely.
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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JCI is still 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.
The debt/assets ratio for JCI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.60 indicates that JCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
JCI's Altman-Z score of 2.60 is on the low side compared to the rest of the industry. JCI is outperformed by 66.67% of its industry peers.
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.
JCI has a Debt to FCF ratio of 13.92. This is in the lower half of the industry: JCI underperforms 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.
JCI's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. JCI outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 13.92 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.23
WACC7.46%
2.3 Liquidity
JCI has a Current 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.
Looking at the Current ratio, with a value of 0.93, JCI is doing worse than 92.86% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that JCI may have some problems paying its short term obligations.
JCI has a Quick ratio of 0.76. This is amonst the worse of the industry: JCI underperforms 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.
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.
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
The Earnings Per Share is expected to grow by 15.75% 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 5.10% on average per year.
EPS Next Y23.15%
EPS Next 2Y19.63%
EPS Next 3Y17.82%
EPS Next 5Y15.75%
Revenue Next Year5.7%
Revenue Next 2Y5.6%
Revenue Next 3Y5.45%
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
The Price/Earnings ratio is 31.82, which means the current valuation is very expensive for JCI.
Based on the Price/Earnings ratio, JCI is valued a bit more expensive than 69.05% of the companies in the same industry.
JCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.84, JCI can be considered very expensive at the moment.
JCI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JCI is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. JCI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 25.84 |
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.
Based on the Price/Free Cash Flow ratio, JCI is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.26 | ||
| EV/EBITDA | 22.23 |
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.
JCI's earnings are expected to grow with 17.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)2.93
EPS Next 2Y19.63%
EPS Next 3Y17.82%
5. Dividend
5.1 Amount
JCI has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.71, JCI pays a better dividend. On top of this JCI pays more dividend than 80.95% of the companies listed in the same industry.
JCI's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
29.66% of the earnings are spent on dividend by JCI. This is a low number and sustainable payout ratio.
JCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.66%
EPS Next 2Y19.63%
EPS Next 3Y17.82%
119.96
+0.43 (+0.36%)
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 Cap73.31B
Revenue(TTM)23.60B
Net Income(TTM)3.29B
Analysts74.62
Price Target132.68 (10.6%)
Short Float %3.24%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend1.53
Dividend Growth(5Y)7.84%
DP29.66%
Div Incr Years4
Div Non Decr Years7
Ex-Date
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)13.48%
PT rev (3m)15.34%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)3.76%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 25.84 | ||
| P/S | 3.11 | ||
| P/FCF | 103.26 | ||
| P/OCF | 64.08 | ||
| P/B | 5.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.23 |
EPS(TTM)3.77
EY3.14%
EPS(NY)4.64
Fwd EY3.87%
FCF(TTM)1.16
FCFY0.97%
OCF(TTM)1.87
OCFY1.56%
SpS38.61
BVpS21.15
TBVpS-11.98
PEG (NY)1.37
PEG (5Y)2.93
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
WACC7.46%
ROIC/WACC1.23
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 Y23.15%
EPS Next 2Y19.63%
EPS Next 3Y17.82%
EPS Next 5Y15.75%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.12%
Sales Q2Q%-12.88%
Revenue Next Year5.7%
Revenue Next 2Y5.6%
Revenue Next 3Y5.45%
Revenue Next 5Y5.1%
EBIT growth 1Y17.05%
EBIT growth 3Y5.65%
EBIT growth 5Y10.13%
EBIT Next Year46.38%
EBIT Next 3Y20.64%
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 of JOHNSON CONTROLS INTERNATION (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 is the valuation of JOHNSON CONTROLS INTERNATION based on its PE and PB ratios?
The Price/Earnings (PE) ratio for JOHNSON CONTROLS INTERNATION (JCI) is 31.82 and the Price/Book (PB) ratio is 5.67.
Can you provide the dividend sustainability for JCI stock?
The dividend rating of JOHNSON CONTROLS INTERNATION (JCI) is 7 / 10 and the dividend payout ratio is 29.66%.