Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $62.70B
• Dividend Yield: 1.55%
• Average Volume (3M): 4.86M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.21
• Revenue Growth: -8.39%
• EPS Growth: 51.56%
• Country: US
• Employees: 94,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 0.82
• Shares Outstanding: 658,047,300
• 10 Day Avg. Volume: 5,231,801
• 30 Day Avg. Volume: 4,858,215
• PEG Ratio: N/A
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.38
• 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: $96.42
• Price Target Upside: 0.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Johnson Controls scores well across financial performance and earnings call sentiment, suggesting strong operational health and future prospects. Technical analysis indicates positive momentum, though caution is advised due to near-overbought conditions. Valuation remains a concern with a high P/E ratio, but the recent corporate reorganization is seen as a positive strategic move. Overall, the stock is positioned favorably within its industry, but investors should be mindful of valuation risks.

Positive Factors

Financial Performance

Johnson Controls' operations and earnings per share exceeded expectations.

Growth Opportunities

There is a significant opportunity for JCI to leverage its huge cost structure and improve profits, especially by increasing service attachment rates.

Management and Leadership

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

Negative Factors

Earnings Guidance

Management introduced FY3Q25 adj. EPS guide of $0.97-$1.00, which comes in below consensus of $1.01.

Market Expectations

FY25 EPS guidance was narrowed to ~$3.60, aligning with previous estimates and raising the EBITA guide by 10bps.

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers; and provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications. It also offers controls software and software services for residential and commercial applications. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.

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: Positive
• Last Price: 96.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCI, the sentiment is Positive. The current price of 96.06 is above the 20-day moving average (MA) of 84.44, above the 50-day MA of 81.44, and above the 200-day MA of 78.38, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 95.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JCI.

Johnson Controls Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSL	81 Outperform	$17.35B	10.95	33.11%	0.96%	-0.14%	135.52%
TT	76 Outperform	$92.81B	34.62	38.45%	0.83%	11.43%	28.49%
JCI	74 Outperform	$62.70B	25.41	14.92%	1.55%	-8.39%	51.56%
LII	74 Outperform	$21.14B	26.55	131.48%	0.80%	7.78%	30.10%
CARR	71 Outperform	$62.96B	16.85	25.69%	1.08%	0.14%	202.13%
MAS	64 Neutral	$14.59B	18.90	-118.61%	1.71%	-2.67%	-10.72%
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%

Johnson Controls Corporate Events

Johnson Controls Announces Organizational Realignment

On April 1, 2025, Johnson Controls International plc realigned its organizational structure from four to three regional reporting segments to enhance simplification and growth. This change aims to better reflect the company’s operational structure and align with decision-making processes. The company has released unaudited historical financial information for the three months ended March 31, 2025, to assist investors in comparing past and future financial data under the new segment structure. While this realignment affects only the reporting of operating segment results, it does not impact the company’s consolidated financial statements.

The most recent analyst rating on (JCI) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Johnson Controls stock, see the JCI Stock Forecast page.

Spark’s Take on JCI Stock

According to Spark, TipRanks’ AI Analyst, JCI is a Outperform.

Johnson Controls scores well across financial performance and earnings call sentiment, suggesting strong operational health and future prospects. Technical analysis indicates positive momentum, though caution is advised due to near-overbought conditions. Valuation remains a concern with a high P/E ratio, but the recent corporate reorganization is seen as a positive strategic move. Overall, the stock is positioned favorably within its industry, but investors should be mindful of valuation risks.

To see Spark’s full report on JCI stock, click here.

Johnson Controls Realigns Organizational Structure Globally

On April 1, 2025, Johnson Controls International plc realigned its organizational structure from four to three regional reporting segments: Americas, EMEA, and APAC. This change aims to simplify operations, accelerate growth, and align with the company’s decision-making processes. The company has provided unaudited historical financial data to help investors compare past and future performance under the new structure. The realignment affects only the reporting of segment results and does not impact the consolidated financial statements.

Spark’s Take on JCI Stock

According to Spark, TipRanks’ AI Analyst, JCI is a Outperform.

Johnson Controls exhibits solid financial performance with strong cash flow and profitability, despite some revenue contraction. The technical analysis presents a cautious outlook. Valuation metrics suggest the stock is moderately overvalued, but the company’s strategic initiatives and positive earnings call sentiment bolster its position. Recent corporate events, including a major reorganization and CEO succession, further enhance growth potential and leadership confidence.

To see Spark’s full report on JCI stock, click here.

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.