Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $52.04B
• Dividend Yield: 1.94%
• Average Volume (3M): 5.11M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.15
• Revenue Growth: -4.53%
• EPS Growth: -14.72%
• Country: US
• Employees: 94,000
• Sector: Industrials
• Sector Strength: 70
• Industry: Construction
• EPS (TTM): 2.62
• Shares Outstanding: 660,139,160
• 10 Day Avg. Volume: 5,467,164
• 30 Day Avg. Volume: 5,112,242
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.45
• Price to Cash Flow (P/CF): 54.90
• P/FCF Ratio: 102.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $89.73
• Price Target Upside: 15.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Johnson Controls' stock score reflects strong financial health, positive earnings growth, and strategic corporate restructuring. Despite short-term technical weaknesses and valuation concerns, the company is well-positioned for future growth with new leadership and a clear operational focus. Concerns about potential tariff impacts and sector-specific challenges are notable but are outweighed by robust earnings performance and strategic initiatives.

Positive Factors

Leadership

The appointment of a new CEO, Joakim Weidemanis, is viewed positively as he has a track record of significant operating margin improvements.

Market Growth

JCI's favorable end market mix is expected to allow for over 5% average annual growth moving forward.

Negative Factors

Financial Performance

The guidance for F2025 is below Street estimates at the midpoint, likely due to stranded costs and better profitability in certain segments.

Segment Performance

NA field margins lighter despite solid organic growth, with segment margin -40bps lower yoy to 15.4%.

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls (JCI) is a global diversified technology and multi-industrial leader serving a wide range of customers in more than 150 countries. The company specializes in creating intelligent buildings, efficient energy solutions, integrated infrastructure, and next-generation transportation systems. Core products and services include building management systems, HVAC equipment, security solutions, and energy efficiency solutions.

How the Company Makes Money

Johnson Controls generates revenue through a combination of product sales, services, and solutions primarily in the building technology and solutions sector. Key revenue streams include the sale of heating, ventilation, and air conditioning (HVAC) systems, building management systems, fire and security solutions, and energy efficiency solutions. The company also offers maintenance, repair, and retrofit services, which provide a steady stream of recurring revenue. Significant partnerships with construction firms, real estate companies, and governments further enhance its earnings potential by facilitating large-scale projects and contracts. Additionally, Johnson Controls benefits from its global presence and established brand reputation, which help to secure contracts and partnerships worldwide.

Johnson Controls Financial Statement Overview

Summary

Johnson Controls demonstrates solid financial health with strong profitability metrics, stable balance sheet, and robust cash flow generation. While recent revenue contraction is a concern, efficient cost management and strong cash flow provide a buffer. Moderate leverage and good returns on equity highlight financial stability, positioning the company well in the construction industry.

Income Statement

Johnson Controls shows strong profitability with a Gross Profit Margin of 42.6% and a Net Profit Margin of 9.3% for TTM. Revenue growth is negative at -18.1%, indicating a recent decline compared to the previous year. The EBIT Margin of 11.8% and EBITDA Margin of 12.9% suggest solid operational efficiency. Overall, the company maintains strong margins despite recent revenue contraction.

Balance Sheet

The company's balance sheet is robust with a Debt-to-Equity Ratio of 0.60, showcasing moderate leverage. The Return on Equity is impressive at 11.0%, reflecting effective utilization of equity capital. An Equity Ratio of 37.8% indicates a stable capital structure with a healthy proportion of equity in total assets.

Cash Flow

Cash flow analysis reveals strong performance, with a Free Cash Flow of $2.075 billion showing growth from the previous period. The Operating Cash Flow to Net Income Ratio is 1.48, indicating strong cash generation relative to net income. Free Cash Flow to Net Income Ratio of 1.19 further underscores effective cash management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
22.28B	22.95B	26.79B	25.30B	23.67B	22.32B
	Gross Profit
8.00B	8.08B	8.97B	8.34B	8.06B	7.41B
	EBIT
2.39B	2.42B	2.79B	2.64B	3.06B	1.92B
	EBITDA
2.79B	2.80B	3.68B	3.47B	3.91B	2.57B
	Net Income Common Stockholders
1.75B	1.71B	1.85B	1.53B	1.64B	631.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
770.00M	606.00M	835.00M	2.03B	1.34B	1.95B
	Total Assets
23.81B	42.70B	42.24B	42.16B	41.89B	40.81B
	Total Debt
3.38B	9.49B	8.85B	8.96B	7.74B	7.82B
	Net Debt
2.61B	8.89B	8.01B	6.93B	6.40B	5.87B
	Total Liabilities
14.18B	25.33B	24.55B	24.76B	23.14B	22.28B
	Stockholders Equity
9.41B	16.10B	16.55B	16.27B	17.56B	17.45B
Cash Flow		Free Cash Flow
2.07B	1.60B	1.68B	1.39B	1.94B	879.00M
	Operating Cash Flow
2.59B	2.10B	2.22B	1.99B	2.49B	975.00M
	Investing Cash Flow
-249.00M	-221.00M	-1.18B	-693.00M	-1.09B	51.00M
	Financing Cash Flow
-3.11B	-2.08B	-2.17B	-516.00M	-2.13B	-1.51B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCI, the sentiment is Neutral. The current price of 77.72 is below the 20-day moving average (MA) of 79.64, below the 50-day MA of 81.94, and above the 200-day MA of 76.59, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JCI.

Johnson Controls Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JCI	76 Outperform	$52.04B	30.10	9.80%	1.94%	-4.53%	-14.72%
CSL	75 Outperform	$15.12B	18.87	32.60%	1.12%	-1.76%	176.01%
CARR	70 Outperform	$52.50B	129.46	27.44%	1.31%	8.62%	163.53%
LII	69 Neutral	$19.97B	24.90	142.12%	0.83%	7.21%	36.45%
TT	68 Neutral	$76.89B	30.49	35.88%	1.01%	12.22%	28.13%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
MAS	59 Neutral	$13.50B	16.99	-118.61%	1.85%	-1.74%	-6.91%

Johnson Controls Corporate Events

Johnson Controls Announces Major Reorganization into Three Segments

On April 1, 2025, Johnson Controls reorganized its structure into three reporting segments: Americas, EMEA, and APAC, to simplify operations and align with its chief operating decision maker’s resource allocation strategy. This reorganization includes a new leadership role for Lei Schiltz and aims to enhance growth and efficiency while focusing on customer experience. The company will report under this new structure starting with its fiscal third quarter results and will provide recast historical financial information to assist investors.

Johnson Controls Appoints New CEO at AGM 2025

On March 12, 2025, Johnson Controls held its Annual General Meeting in Cork, Ireland, where Joakim Weidemanis succeeded George Oliver as CEO, with Oliver remaining as Chairman until his retirement on July 31, 2025. The AGM also saw the election of board members and approval of various management proposals, including the ratification of independent auditors, authorization for market purchases of shares, and approval of executive compensation, reflecting strong shareholder support for the company’s strategic initiatives.

Johnson Controls Announces New CEO and Leadership Changes

On February 5, 2025, Johnson Controls announced the appointment of Joakim Weidemanis as the new Chief Executive Officer, succeeding George Oliver, effective March 12, 2025. This leadership transition marks a significant change in the company’s governance, with Weidemanis bringing extensive experience from Danaher Corporation. George Oliver will remain as Chairman until his retirement on July 31, 2025, after which Mark Vergnano will take over as independent Chairman. Additionally, a retention award was approved for Marc Vandiepenbeeck, the CFO, to ensure leadership stability during this transition period.

Johnson Controls Announces New CEO and Strong Q1 Results

On February 5, 2025, Johnson Controls announced the appointment of Joakim Weidemanis as the new CEO, effective March 12, 2025. The company also reported strong fiscal first quarter 2025 results with a 4% increase in sales to $5.4 billion and a 10% rise in organic sales. This performance reflects their strategy to streamline their portfolio and strengthen their position as a leading building solutions provider, contributing to a more predictable performance and delivering value to stakeholders.