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 Analysis

Adequate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.4%

JCI

11.7%

US Building

12.5%

US Market


1 Year Return

-29.7%

JCI

-17.9%

US Building

-12.7%

US Market

Return vs Industry: JCI underperformed the US Building industry which returned -17.9% over the past year.

Return vs Market: JCI underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

JCIIndustryMarket
7 Day10.4%11.7%12.5%
30 Day-29.1%-26.0%-14.7%
90 Day-36.3%-30.8%-21.5%
1 Year-27.8%-29.7%-16.6%-17.9%-10.9%-12.7%
3 Year-31.5%-37.0%-17.1%-21.0%12.6%5.4%
5 Year-34.3%-48.6%-0.7%-13.5%31.9%17.5%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JCI ($25.94) is trading below our estimate of fair value ($34.18)

Significantly Below Fair Value: JCI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JCI is poor value based on its PE Ratio (18.7x) compared to the Building industry average (16.5x).

PE vs Market: JCI is poor value based on its PE Ratio (18.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JCI is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: JCI is good value based on its PB Ratio (1x) compared to the US Building industry average (1.2x).


Next Steps

Future Growth

How is Johnson Controls International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JCI's forecast earnings growth (11.2% per year) is above the savings rate (1.7%).

Earnings vs Market: JCI's earnings (11.2% per year) are forecast to grow slower than the US market (12.3% 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 (10.9%).


Next Steps

Past Performance

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

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCI has a large one-off loss of $406.0M impacting its December 31 2019 financial results.

Growing Profit Margin: JCI's current net profit margins (4.8%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: JCI's earnings have declined by -0.2% 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 (-15.1%) over the past year, making it difficult to compare to the Building industry average (-15.9%).


Return on Equity

High ROE: JCI's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Johnson Controls International's financial position?


Financial Position Analysis

Short Term Liabilities: JCI's short term assets ($11.3B) exceed its short term liabilities ($9.7B).

Long Term Liabilities: JCI's short term assets ($11.3B) do not cover its long term liabilities ($12.4B).


Debt to Equity History and Analysis

Debt Level: JCI's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: JCI's debt to equity ratio has reduced from 66.8% to 35.6% over the past 5 years.

Debt Coverage: JCI's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: JCI's interest payments on its debt are well covered by EBIT (8x 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 1.6x debt).


Next Steps

Dividend

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

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JCI's dividend (4.01%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: JCI's dividend (4.01%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (75.1%), 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 (40.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

George Oliver (59yo)

2.5s

Tenure

US$15,476,637

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 ($USD15.48M) is above average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Oliver
Chairman & CEO2.5yrsUS$15.48m0.13% $26.0m
Brian Stief
Vice Chairman5.5yrsUS$4.91m0.0081% $1.6m
John Donofrio
Executive VP2.33yrsUS$3.84m0.0049% $973.5k
Jeffrey Williams
VP and President of Global Products3yrsUS$4.37m0.013% $2.6m
Robert VanHimbergen
VP, Corporate Controller & Principal Accounting Officer2.25yrsno data0.0025% $500.6k
Nancy Berce
Chief Information Officer1.92yrsno datano data
Antonella Franzen
VP and Chief Investor Relations & Communications Officer1.92yrsno datano data
Philip Clement
Chief Marketing Officerno datano datano data
Lynn Minella
Executive VP & Chief Human Resources Officer2.75yrsno data0.0092% $1.8m
Michael Bartschat
Chief Procurement Officer & VP5.67yrsno datano data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Management: JCI's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Oliver
Chairman & CEO2.5yrsUS$15.48m0.13% $26.0m
R. Yost
Independent Director11yrsUS$275.00k0.0071% $1.4m
Gretchen Frances Haggerty
Independent Director2yrsUS$275.00k0.0020% $397.7k
Carl Tinggren
Lead Independent Director2.58yrsUS$330.00k0.0037% $742.0k
Webster Dunbar
Independent Director2.75yrsUS$275.00k0.0014% $275.0k
Mark Vergnano
Independent Director3.5yrsUS$275.00k0.0030% $589.6k
Michael Daniels
Independent Director10yrsUS$300.00k0.0095% $1.9m
Juan Pablo del Valle Perochena
Independent Director3.5yrsUS$300.00k0.0014% $284.9k
John Young
Independent Director2.25yrsUS$275.00k0.0013% $251.3k
Simone Menne
Independent Director2yrsUS$275.00k0.0012% $235.5k

2.7yrs

Average Tenure

60yo

Average Age

Experienced Board: JCI's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$19.787b
  • Shares outstanding: 762.78m
  • 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
J1CI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. The company operates through Building Solutions North America, Building Solutions EMEA/LA, Building Solutions EMEA/LA, and Global Products segments. The company designs, sells, installs, and services heating, ventilating, and air conditioning systems, controls systems, integrated electronic security systems, and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional, and governmental customers; and energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems to non-residential building and industrial applications. It also designs and produces heating and air conditioning for residential and commercial applications; and markets products and refrigeration systems to replacement and new construction market; and designs, manufactures, and sells fire protection and security products, including intrusion security, anti-theft devices, and access control and video management systems for commercial, industrial, retail, residential, small business, institutional, and governmental customers. The company was formerly known as Johnson Controls, Inc. and changed its name to Johnson Controls International plc in September 2016. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 04:18
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.