Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $67.71B
• Dividend Yield: 1.43%
• Average Volume (3M): 4.53M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.20
• 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: 4,306,453
• 30 Day Avg. Volume: 4,531,429
• PEG Ratio: -6.22
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.97
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 3.25
• 1Y Price Target: $103.31
• Price Target Upside: -0.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $108.00 ▲(4.25%Upside)

Johnson Controls demonstrates strong financial management and profitability, with a positive outlook from the recent earnings call. The stock's technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. Valuation appears fair, and the corporate restructuring is a strategic move to enhance growth. These factors combine to position the stock as a solid investment within the construction industry.

Positive Factors

Backlog Growth

Backlog increased to $14B, with significant growth in North America, EMEA/LA, and APAC regions.

Data Center Business Growth

JCI highlighted its data center business was growing in the high double digits for both revenue and orders.

New CEO Appointment

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

Share Buybacks

$5bn of proceeds from the residential and light commercial divestiture expected at year-end will be deployed into share buybacks.

Negative Factors

Earnings Guidance

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

European Market Delays

Continuing delays in the European datacenter market due to regulatory barriers and power constraints.

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 makes money through a diverse revenue model that includes the sale and servicing of building products and systems, such as heating, ventilation, and air conditioning (HVAC) equipment, as well as fire and security systems. A significant portion of its revenue comes from long-term service contracts and maintenance agreements, which provide a steady stream of income. The company also benefits from its focus on sustainability and energy efficiency, offering solutions that help clients reduce energy consumption and emissions, leading to cost savings. Partnerships with businesses, governments, and organizations worldwide further enhance its revenue streams. Additionally, Johnson Controls' global presence allows it to tap into markets across various regions, contributing to its earnings.

Johnson Controls Financial Statement Overview

Summary

Overall, Johnson Controls demonstrates solid financial health with strong profitability and effective cash flow management. While revenue growth has been inconsistent, the company maintains stable margins and a healthy balance sheet, positioning it well within the construction industry despite moderate leverage.

Income Statement

The income statement shows stable gross and net profit margins with slight fluctuations. The TTM gross profit margin is approximately 37.1%, and the net profit margin is about 11.8%, indicating solid profitability. However, revenue growth has been inconsistent, with a decrease from 2023 to TTM. EBIT and EBITDA margins reflect efficient operations but have slightly decreased over recent years.

Balance Sheet

The balance sheet presents a healthy equity base with an equity ratio of about 37.3% for TTM, indicating financial stability. The debt-to-equity ratio is approximately 0.63, showing moderate leverage. ROE stands at a robust 15.8%, reflecting efficient use of equity to generate profits.

Cash Flow

Cash flow analysis reveals strong free cash flow growth from the last annual report to TTM, increasing by around 81.7%. The operating cash flow to net income ratio is 1.35, showing good cash generation relative to profits. Free cash flow to net income ratio is also strong at 1.16, indicating efficient cash management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
21.26B	22.95B	26.79B	25.30B	23.67B	22.32B
	Gross Profit
7.89B	8.08B	8.97B	8.34B	8.06B	7.41B
	EBIT
3.10B	2.42B	2.79B	2.64B	3.06B	1.92B
	EBITDA
3.51B	2.80B	3.68B	3.47B	3.91B	2.57B
	Net Income Common Stockholders
2.50B	1.71B	1.85B	1.53B	1.64B	631.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
795.00M	606.00M	835.00M	2.03B	1.34B	1.95B
	Total Assets
42.37B	42.70B	42.24B	42.16B	41.89B	40.81B
	Total Debt
9.99B	9.49B	8.85B	8.96B	7.74B	7.82B
	Net Debt
9.19B	8.89B	8.01B	6.93B	6.40B	5.87B
	Total Liabilities
25.34B	25.33B	24.55B	24.76B	23.14B	22.28B
	Stockholders Equity
15.80B	16.10B	16.55B	16.27B	17.56B	17.45B
Cash Flow		Free Cash Flow
2.91B	1.60B	1.68B	1.39B	1.94B	879.00M
	Operating Cash Flow
3.39B	2.10B	2.22B	1.99B	2.49B	975.00M
	Investing Cash Flow
-241.00M	-221.00M	-1.18B	-693.00M	-1.09B	51.00M
	Financing Cash Flow
-3.30B	-2.08B	-2.17B	-516.00M	-2.13B	-1.51B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 103.6 is above the 20-day moving average (MA) of 100.63, above the 50-day MA of 89.68, and above the 200-day MA of 81.79, indicating a bullish trend. The MACD of 3.65 indicates Positive momentum. The RSI at 75.27 is Negative, neither overbought nor oversold. The STOCH value of 82.48 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
TT	81 Outperform	$94.04B	35.08	38.45%	0.89%	11.43%	28.49%
CARR	81 Outperform	$61.51B	16.47	25.69%	1.24%	0.14%	202.13%
CSL	78 Outperform	$15.95B	10.07	33.11%	1.08%	-0.14%	135.52%
JCI	74 Outperform	$67.71B	27.44	14.92%	1.43%	-8.39%	51.56%
LII	74 Outperform	$19.70B	24.75	131.48%	0.83%	7.78%	30.10%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
MAS	65 Neutral	$13.78B	17.85	-118.61%	1.90%	-2.67%	-10.72%

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.

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.

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.