NYSE:JCI

Stock Analysis Report

Johnson Controls International

Executive Summary

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Johnson Controls International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

JCI

0.9%

US Building

0.7%

US Market


1 Year Return

26.8%

JCI

27.6%

US Building

12.9%

US Market

Return vs Industry: JCI matched the US Building industry which returned 27.6% over the past year.

Return vs Market: JCI exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

JCIIndustryMarket
7 Day-0.3%0.9%0.7%
30 Day1.3%4.3%4.4%
90 Day-0.6%10.3%7.0%
1 Year30.3%26.8%29.7%27.6%15.4%12.9%
3 Year2.7%-5.2%24.9%18.9%49.1%39.5%
5 Year7.6%-15.5%51.8%31.8%62.7%44.7%

Price Volatility Vs. Market

How volatile is Johnson Controls International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson Controls International undervalued compared to its fair value and its price relative to the market?

33.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JCI ($42.39) is trading above our estimate of fair value ($33.84)

Significantly Below Fair Value: JCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JCI is poor value based on its PE Ratio (33.5x) compared to the Building industry average (21.4x).

PE vs Market: JCI is poor value based on its PE Ratio (33.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: JCI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: JCI is good value based on its PB Ratio (1.7x) compared to the US Building industry average (2.5x).


Next Steps

Future Growth

How is Johnson Controls International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JCI's forecast earnings growth (16.6% per year) is above the savings rate (2.7%).

Earnings vs Market: JCI's earnings (16.6% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: JCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: JCI's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JCI's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JCI's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Johnson Controls International performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCI has large one-off items impacting its financial results.

Growing Profit Margin: JCI's current net profit margins (4.6%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: JCI's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: JCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JCI had negative earnings growth (-49.1%) over the past year, making it difficult to compare to the Building industry average (-5.5%).


Return on Equity

High ROE: JCI's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Johnson Controls International's financial position?


Financial Position Analysis

Short Term Liabilities: JCI's short term assets ($12.4B) exceeds its short term liabilities ($9.1B)

Long Term Liabilities: JCI's short term assets (12.4B) exceeds its long term liabilities (12.4B)


Debt to Equity History and Analysis

Debt Level: JCI's debt to equity ratio (34.7%) is considered satisfactory

Reducing Debt: JCI's debt to equity ratio has reduced from 57% to 34.7% over the past 5 years.

Debt Coverage: JCI's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: JCI's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: JCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: JCI's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Johnson Controls International's current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.6%industryaverage1.7%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: JCI's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: JCI's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: JCI's dividend payments have been volatile in the past 10 years.

Growing Dividend: JCI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.3%), JCI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JCI's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

What is the CEO of Johnson Controls International's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

George Oliver (59yo)

2.2yrs

Tenure

US$15,393,868

Compensation

Mr. George R. Oliver has been Chairman and Chief Executive Officer of Johnson Controls International plc. since September 1, 2017. Mr. Oliver served as the President and Chief Operating Officer of Johnson  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD15.39M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: JCI's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: JCI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: JCI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$596,42606 Sep 19
Rodney Rushing
EntityIndividual
Shares13,908
Max PriceUS$42.88
SellUS$73,08330 Aug 19
Robert VanHimbergen
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller & Principal Accounting Officer
Shares1,700
Max PriceUS$42.99
BuyUS$257,50826 Aug 19
Gretchen Frances Haggerty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,220
Max PriceUS$41.40
SellUS$96,70402 Aug 19
Robert VanHimbergen
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller & Principal Accounting Officer
Shares2,300
Max PriceUS$42.05
SellUS$1,071,41808 May 19
Brian Stief
EntityIndividual
Role
Chief Financial Officer
Vice Chairman
Shares27,395
Max PriceUS$39.11
SellUS$143,27903 May 19
Rodney Rushing
EntityIndividual
Shares3,671
Max PriceUS$39.03

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lynn Minella (61yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.4yrs
  • Mike Bartschat (57yo)

    Chief Procurement Officer & VP

    • Tenure: 5.3yrs
  • John Donofrio (57yo)

    Executive VP & General Counsel

    • Tenure: 2yrs
    • Compensation: US$6.54m
  • George Oliver (59yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$15.39m
  • Jeff Williams (58yo)

    VP and President of Global Products

    • Tenure: 2.7yrs
    • Compensation: US$4.72m
  • Brian Stief (63yo)

    Vice Chairman

    • Tenure: 5.2yrs
    • Compensation: US$5.07m
  • Suzanne Vincent (49yo)

    VP & CFO of Power Solutins

    • Tenure: 5.2yrs
  • Nancy Berce (53yo)

    Chief Information Officer

    • Tenure: 1.6yrs
  • Antonella Franzen

    VP and Chief Investor Relations & Communications Officer

    • Tenure: 1.6yrs
  • Bob VanHimbergen (43yo)

    VP, Corporate Controller & Principal Accounting Officer

    • Tenure: 1.9yrs

Board Members

  • R. Yost (71yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$275.00k
  • Gretchen Frances Haggerty (63yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$223.33k
  • Carl Tinggren (61yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$330.00k
  • Webster Dunbar (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$275.00k
  • Mark Vergnano (61yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$275.00k
  • George Oliver (59yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$15.39m
  • Mike Daniels (64yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$300.00k
  • Juan Pablo del Valle Perochena (47yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$289.24k
  • John Young (54yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$291.90k
  • Simone Menne (59yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$223.33k

Company Information

Johnson Controls International plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson Controls International plc
  • Ticker: JCI
  • Exchange: NYSE
  • Founded: 1885
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$32.962b
  • Shares outstanding: 777.60m
  • Website: https://www.johnsoncontrols.com

Number of Employees


Location

  • Johnson Controls International plc
  • One Albert Quay
  • Cork
  • Co. Cork
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JCINYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
TYIADB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0Y7SLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968

Biography

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. The company operates through Building Technologies & Solutions and Power Solutions segments.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:42
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.