Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $73.05B
• Dividend Yield: 1.32%
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): 43.7
• Beta (1Y): 1.15
• Revenue Growth: -10.19%
• EPS Growth: 100.65%
• Country: US
• Employees: 94,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.26
• Shares Outstanding: 611,135,700
• 10 Day Avg. Volume: 5,975,031
• 30 Day Avg. Volume: 4,915,817
• PEG Ratio: 9.58
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 74.26
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 9.37
• Enterprise Value/Ebitda: 26.06
• 1Y Price Target: $128.78
• Price Target Upside: 7.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.59
• Revenue Forecast (FY): $24.82B

• Rating: 70 Outperform
• Price Target: $133.00 ▲(11.27% Upside)

Johnson Controls' strong earnings call performance and strategic initiatives are the most significant factors driving the score. Financial performance is robust, but challenges in cash flow and valuation concerns slightly offset the positive outlook. Technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue and margin growth indicate strong market demand and effective cost management, supporting long-term financial health.

Technological Advancements

Investments in advanced cooling solutions for AI-driven data centers position JCI as a leader in high-demand tech markets.

Strategic Backlog Growth

A growing backlog reflects sustained demand and provides revenue visibility, supporting stable future cash flows.

Negative Factors

Challenges in APAC Region

Declining sales in APAC, especially in China, could hinder overall growth and market expansion efforts in a key region.

Increased Leverage

Increased leverage may limit financial flexibility and increase risk, impacting the company's ability to invest in growth opportunities.

Patent Infringement Lawsuit

Ongoing litigation could lead to financial liabilities and distract management, potentially affecting long-term strategic initiatives.

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls International plc (JCI) is a global leader in the manufacturing and management of buildings, providing products and services that enhance operational efficiency, sustainability, and safety. The company operates primarily in two sectors: Building Solutions and Power Solutions. Its core offerings include HVAC equipment, building management systems, fire and security systems, and advanced battery technologies for vehicles. JCI is committed to innovation and sustainability, addressing the demand for smart buildings and energy-efficient solutions.

How the Company Makes Money

Johnson Controls generates revenue through several key streams. The Building Solutions segment is a significant contributor, as it provides HVAC systems, building automation, security, and fire protection services to commercial, industrial, and residential markets. The Power Solutions segment, which focuses on advanced battery systems for vehicles, also plays a crucial role in the company's earnings. JCI benefits from long-term service contracts and maintenance agreements, ensuring recurring revenue. Additionally, strategic partnerships with technology firms and collaborations with construction companies bolster its market position and expand its reach. The company also emphasizes innovation in energy efficiency and sustainability, aligning with global trends towards greener technologies, which contributes to increased demand and revenue growth.

Johnson Controls Financial Statement Overview

Summary

Johnson Controls shows strong revenue growth and efficient cost management, with improved gross profit margins. However, increased leverage and challenges in free cash flow generation present areas for improvement.

Income Statement

Johnson Controls has demonstrated a solid revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue growth rate of 8.29%. The gross profit margin has improved to 36.41%, indicating efficient cost management. However, the net profit margin slightly decreased to 7.29%, suggesting some pressure on net profitability. The EBIT and EBITDA margins remain stable, reflecting consistent operational performance.

Balance Sheet

The company's debt-to-equity ratio of 0.72 indicates a moderate level of leverage, which is manageable but has increased compared to previous years. Return on equity has improved to 14.02%, showcasing effective use of equity to generate profits. The equity ratio stands at 34.06%, reflecting a balanced capital structure with a reasonable proportion of equity financing.

Cash Flow

Operating cash flow has increased, but free cash flow has declined by 17.91% in the TTM period, indicating potential challenges in cash generation. The operating cash flow to net income ratio of 0.26 suggests a moderate conversion of net income into cash. The free cash flow to net income ratio of 0.85 is healthy, showing that a significant portion of earnings is translated into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.60B	23.60B	22.95B	22.33B	25.30B	23.67B
Gross Profit	8.59B	8.59B	8.08B	7.82B	8.31B	8.05B
EBITDA	3.09B	3.15B	2.80B	2.10B	2.88B	3.88B
Net Income	1.72B	1.72B	1.71B	1.85B	1.53B	1.64B
Balance Sheet
Total Assets	37.94B	37.94B	42.70B	42.24B	42.16B	41.89B
Cash, Cash Equivalents and Short-Term Investments	379.00M	379.00M	606.00M	828.00M	2.03B	1.34B
Total Debt	9.88B	9.88B	9.49B	8.82B	8.96B	7.74B
Total Liabilities	24.98B	24.98B	25.33B	24.55B	24.76B	23.14B
Stockholders Equity	12.93B	12.93B	16.10B	16.55B	16.27B	17.56B
Cash Flow
Free Cash Flow	965.00M	965.00M	1.60B	1.77B	1.50B	1.94B
Operating Cash Flow	1.40B	1.40B	2.10B	2.22B	1.99B	2.49B
Investing Cash Flow	6.13B	6.13B	-221.00M	-1.18B	-693.00M	-1.09B
Financing Cash Flow	-7.39B	-7.39B	-2.08B	-2.17B	-516.00M	-2.13B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.53
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 119.53 is above the 20-day moving average (MA) of 115.83, above the 50-day MA of 114.81, and above the 200-day MA of 101.73, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.65 is Neutral, 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
JCI	70 Outperform	$73.05B	43.65	11.86%	1.32%	-10.19%	100.65%
CSL	70 Outperform	$13.74B	18.60	32.36%	1.28%	0.14%	3.88%
TT	70 Outperform	$86.44B	30.00	37.07%	0.96%	8.58%	20.37%
CARR	66 Neutral	$45.29B	21.58	9.44%	1.65%	-7.93%	-35.00%
LII	64 Neutral	$17.43B	20.97	92.25%	0.96%	3.77%	12.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	63 Neutral	$11.48B	19.75	13.56%	―	-6.44%	-48.84%

Johnson Controls Corporate Events

Johnson Controls Announces Leadership Transition in Americas

On September 19, 2025, Johnson Controls announced that Nathan Manning, Vice President and President of the Americas segment, will transition leadership to Todd Grabowski on October 1, 2025, as Manning leaves to pursue other opportunities. Manning will stay on as a special advisor until the end of the year, and his departure will involve severance benefits, reflecting a strategic leadership change within the company.