It's been a great afternoon session for Johnson Controls International investors, who saw their shares rise 1.6% to a price of $111.73 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Johnson Controls International's Valuation Is in Line With Its Sector Averages:
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. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03 and an average price to book (P/B) ratio of 2.89. In contrast, Johnson Controls International has a trailing 12 month P/E ratio of 33.8 and a P/B ratio of 4.65.
Johnson Controls International has moved 61.2% over the last year compared to 16.9% for the S&P 500 — a difference of 44.3%. Johnson Controls International has a 52 week high of $112.0 and a 52 week low of $64.31.
The Firm Has a Declining EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $23,968 | $22,317 | $23,668 | $20,637 | $22,331 | $22,952 |
| Gross Margins | 32% | 33% | 34% | 34% | 35% | 35% |
| Net Margins | 24% | 3% | 7% | 7% | 8% | 7% |
| Net Income (M) | $5,674 | $631 | $1,637 | $1,532 | $1,849 | $1,705 |
| Net Interest Expense (M) | $335 | $240 | $219 | $225 | $288 | $361 |
| Depreciation & Amort. (M) | $825 | $822 | $845 | $717 | $745 | $816 |
| Diluted Shares (M) | 774 | 726 | 710 | 690 | 682 | 665 |
| Earnings Per Share | $6.49 | $0.84 | $2.27 | $2.19 | $2.69 | $2.52 |
| EPS Growth | n/a | -87.06% | 170.24% | -3.52% | 22.83% | -6.32% |
| Avg. Price | $35.81 | $35.43 | $63.97 | $59.67 | $53.06 | $111.73 |
| P/E Ratio | 5.49 | 42.18 | 28.06 | 27.12 | 19.65 | 44.16 |
| Free Cash Flow (M) | $1,157 | $2,036 | $1,999 | $750 | $1,410 | $1,511 |
| CAPEX (M) | $586 | $443 | $552 | $487 | $446 | $494 |
| EV / EBITDA | 16.95 | 18.28 | 14.89 | 26.31 | 23.1 | 35.01 |
| Total Debt (M) | $6,421 | $7,731 | $7,663 | $8,649 | $8,604 | $9,104 |
| Net Debt / EBITDA | 2.27 | 3.42 | 1.87 | 3.9 | 3.66 | 3.36 |
| Current Ratio | 1.17 | 1.18 | 1.04 | 1.02 | 0.97 | 1.02 |
Johnson Controls International has slight revenue growth and a flat capital expenditure trend, similar gross margins to its peers, and positive cash flows. The company's financial statements also display just enough current assets to cover current liabilities, as shown by its current ratio of 1.02 and significant leverage levels. Furthermore, the firm has declining EPS growth.
