Johnson Controls International plc
Johnson Controls International plc Fundamental Analysis
Johnson Controls International plc (JCI) shows moderate financial fundamentals with a PE ratio of 26.51, profit margin of 14.17%, and ROE of 23.52%. The company generates $23.3B in annual revenue with weak year-over-year growth of 2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze JCI's fundamental strength across five key dimensions:
Efficiency Score
WeakJCI struggles to generate sufficient returns from assets.
Valuation Score
WeakJCI trades at a premium to fair value.
Growth Score
WeakJCI faces weak or negative growth trends.
Financial Health Score
ModerateJCI shows balanced financial health with some risks.
Profitability Score
ModerateJCI maintains healthy but balanced margins.
Key Financial Metrics
Is JCI Expensive or Cheap?
P/E Ratio
JCI trades at 26.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JCI's PEG of 6.16 indicates potential overvaluation.
Price to Book
The market values Johnson Controls International plc at 6.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.51 times EBITDA. This signals the market has high growth expectations.
How Well Does JCI Make Money?
Net Profit Margin
For every $100 in sales, Johnson Controls International plc keeps $14.17 as profit after all expenses.
Operating Margin
Core operations generate 13.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.52 in profit for every $100 of shareholder equity.
ROA
Johnson Controls International plc generates $8.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Johnson Controls International plc generates limited operating cash flow of $1.65B, signaling weaker underlying cash strength.
Free Cash Flow
Johnson Controls International plc produces free cash flow of $1.26B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.06 in free cash annually.
FCF Yield
JCI converts 1.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How JCI Stacks Against Its Sector Peers
| Metric | JCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.51 | 26.49 | Neutral |
| ROE | 23.52% | 1307.00% | Weak |
| Net Margin | 14.17% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.69 | 0.81 | Neutral |
| Current Ratio | 0.83 | 10.48 | Weak Liquidity |
| ROA | 8.94% | -1549793.00% (disorted) | Weak |
JCI outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Johnson Controls International plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.82%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
214.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-27.36%
Industry Style: Cyclical, Value, Infrastructure
Declining