Johnson Controls (JCI)
Industrials · $85.2B market cap · SEC CIK 0000833444
ahead of 21% of the S&P 500 · #68 of 79 in Industrials
Next reports on Feb 1, 2027, with analysts expecting $1.20 in earnings per share.
52-week range $108.41 to $160.41. 12% below its 52-week high and 30% above its low.
The case for JCI
- Revenue growing 8.8% year over year.
- Pays a 2.8% dividend while you wait.
- Return on equity of 21%.
The case against
- Priced at 29.9× earnings while earnings per share are shrinking (−8.1%).
- Earnings per share fell 8.1%.
- Current liabilities exceed current assets (ratio 0.90).
- Value is weak (37/100): 29.9× earnings against a fair 25× for its growth, 3.3× sales, 2.5% free-cash yield.
- Long-term debt of $9.2B against $379M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 37 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 33 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 44 |
| Momentumhow the price has behaved lately | 56 |
| Stabilityhow violently it moves, what it owes and what it pays you | 56 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +8.8% |
|---|---|
| Over 5 years | +1.6% a year |
| FY2025 revenue | $23.6B (+3%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $2.1B |
|---|---|
| Of revenue | 9% |
| Of profit | 64% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 37% |
|---|---|
| Operating margin | 14% |
| Net margin, FY24 → FY25 → now | 7.4% → 13.9% → 11.1% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $379M |
|---|---|
| Long-term debt | $9.2B |
| Net debt | $8.8B |
| Years to repay | 3.6 yrs |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 29.9× |
|---|---|
| Fair P/E for its growth | 25× |
| P/FCF | 40.2× |
| Forward P/E | 23.5× |
| EV / EBITDA | 21.6× |
At 29.9× earnings it trades close to the 25× that 9% a year of growth plus a 2.8% dividend would justify. At 40.2× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Johnson Controls's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $23.6B | $23.0B | $22.3B | $20.6B | $23.7B |
| Change on the year | +3% | +3% | +8% | −13% | — |
| Free cash flow | |||||
| Free cash flow | $2.1B | $1.1B | $1.4B | $750M | $2.0B |
| Of revenue | 9% | 5% | 6% | 4% | 8% |
| Profit margins | |||||
| Gross margin | 36.4% | 35.2% | 34.9% | 34.4% | 34.1% |
| Net margin | 13.9% | 7.4% | 8.3% | 7.4% | 6.9% |
| Debt vs. cash | |||||
| Cash | $379M | $606M | $828M | $2.0B | $1.3B |
| Long-term debt | $9.2B | $8.6B | $8.5B | $7.4B | $7.5B |
| Net cash (debt) | −$8.8B | −$8.0B | −$7.6B | −$5.4B | −$6.2B |
What Johnson Controls says it does
Johnson Controls International plc, headquartered in Cork, Ireland, is a global leader in smart, healthy and sustainable buildings, serving a wide range of customers around the globe. The Company’s products, services, systems and solutions advance the safety, comfort and intelligence of spaces to serve people, places and the planet. The Company is committed to helping its customers win and creating greater value for all of its stakeholders through its strategic focus on buildings. Johnson Controls was originally incorporated in the state of Wisconsin in 1885 as Johnson Electric Service Company to manufacture, install and service automatic temperature regulation systems for buildings and was renamed Johnson Controls, 3 Inc. in 1974. In 2005, Johnson Controls acquired York International, a global supplier of heating, ventilating and air-conditioning ("HVAC") and refrigeration equipment and services. Following this acquisition, Johnson…