Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $70.03B
• Dividend Yield: 1.41%
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.14
• Revenue Growth: -13.10%
• EPS Growth: 40.62%
• Country: US
• Employees: 94,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.05
• Shares Outstanding: 654,385,440
• 10 Day Avg. Volume: 4,298,993
• 30 Day Avg. Volume: 4,309,366
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 9.58
• Enterprise Value/Ebitda: 25.26
• 1Y Price Target: $117.27
• Price Target Upside: 9.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 71 Outperform
• Price Target: $118.00 ▲(10.27% Upside)

Johnson Controls' overall stock score is driven by strong earnings call results and positive sentiment, highlighting robust financial performance and strategic initiatives. However, high valuation metrics and challenges in revenue and cash flow growth temper the score. Technical indicators suggest moderate bullish momentum, but the stock's high P/E ratio indicates potential overvaluation.

Positive Factors

Strong Financial Performance

The growth in organic sales and margins indicates robust operational efficiency and market demand, supporting long-term profitability.

Record Backlog and Free Cash Flow

A record backlog and strong cash flow conversion enhance financial stability, enabling reinvestment in growth and innovation.

Strategic Focus on Innovation

Investment in R&D and a robust patent portfolio strengthen competitive advantage, driving long-term growth and market leadership.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand and compete, impacting future profitability and market share.

Softness in China Market

Weak performance in China, a significant market, could limit growth opportunities and affect overall revenue potential.

Tariff Uncertainty Impact

Tariff uncertainties can disrupt supply chains and increase costs, affecting margins and long-term strategic planning.

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls International plc (JCI) is a global leader in smart, healthy, and sustainable buildings, providing a wide range of products and services in building efficiency, energy management, and integrated security systems. With a strong focus on innovation, JCI operates in two main sectors: Building Solutions and Power Solutions. The Building Solutions division offers HVAC equipment, building automation systems, and fire and security products, while the Power Solutions division focuses on advanced battery technology for various applications, including automotive and renewable energy storage.

How the Company Makes Money

Johnson Controls generates revenue through several key streams. The Building Solutions division earns money by selling HVAC systems, building management software, and energy efficiency solutions, often through long-term contracts and service agreements with commercial and industrial clients. The company also benefits from recurring revenue through maintenance contracts and upgrades for existing systems. The Power Solutions division generates income by manufacturing and supplying batteries, particularly for the automotive market, and this segment relies on both direct sales and partnerships with original equipment manufacturers (OEMs). Additionally, JCI's focus on sustainability and smart building technologies positions it to capitalize on growing trends in energy efficiency and renewable energy, further enhancing its revenue potential.

Johnson Controls Financial Statement Overview

Summary

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.40B	22.95B	22.33B	25.30B	23.67B	22.32B
Gross Profit	8.51B	8.08B	7.82B	8.31B	8.05B	7.42B
EBITDA	3.23B	2.80B	2.10B	2.88B	3.88B	2.08B
Net Income	2.23B	1.71B	1.85B	1.53B	1.64B	631.00M
Balance Sheet
Total Assets	43.39B	42.70B	42.24B	42.16B	41.89B	40.81B
Cash, Cash Equivalents and Short-Term Investments	731.00M	606.00M	828.00M	2.03B	1.34B	1.95B
Total Debt	10.29B	10.70B	10.14B	10.23B	9.11B	9.03B
Total Liabilities	26.35B	25.33B	24.55B	24.76B	23.14B	22.28B
Stockholders Equity	15.83B	16.10B	16.55B	16.27B	17.56B	17.45B
Cash Flow
Free Cash Flow	2.89B	1.60B	1.77B	1.50B	1.94B	1.78B
Operating Cash Flow	3.37B	2.10B	2.22B	1.99B	2.49B	2.22B
Investing Cash Flow	-265.00M	-221.00M	-1.18B	-693.00M	-1.09B	-258.00M
Financing Cash Flow	-3.04B	-2.08B	-2.17B	-516.00M	-2.13B	-2.94B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 107.01 is above the 20-day moving average (MA) of 106.92, above the 50-day MA of 106.56, and above the 200-day MA of 92.13, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 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
TT	73 Outperform	92.40B	32.25	36.46%	0.88%	10.20%	24.57%
LII	73 Outperform	18.33B	22.07	92.68%	0.91%	7.92%	29.72%
JCI	71 Outperform	$70.03B	31.41	12.52%	1.41%	-13.10%	40.62%
CARR	68 Neutral	50.07B	23.44	27.32%	1.47%	-5.24%	-33.37%
CSL	66 Neutral	14.00B	18.21	38.02%	1.25%	1.37%	5.96%
BLDR	59 Neutral	13.07B	17.94	18.10%	―	-6.39%	-42.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Johnson Controls Corporate Events

Johnson Controls Announces $5 Billion Share Buyback

On August 7, 2025, Johnson Controls announced it entered into accelerated share repurchase transactions with major financial institutions to buy back $5 billion of its ordinary shares. This move, funded by proceeds from the sale of its HVAC business, is part of its ongoing share repurchase program and is expected to impact the company’s financial structure and shareholder value positively.

Johnson Controls Sells HVAC Business to Bosch

On July 31, 2025, Johnson Controls completed the sale of its Residential and Light Commercial HVAC business to Robert Bosch GmbH for $8.1 billion, with net proceeds of $5.0 billion after expenses. This transaction positions Johnson Controls as a leading provider of innovative building solutions, allowing the company to focus on faster growth and increased profitability. The proceeds will partly fund a $5.0 billion accelerated share repurchase program, enhancing shareholder value.