Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $79.09B
• Dividend Yield: 1.24%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.14
• 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: 654,385,440
• 10 Day Avg. Volume: 4,927,394
• 30 Day Avg. Volume: 3,964,560
• PEG Ratio: -4.87
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 32.60
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: 27.94
• 1Y Price Target: $129.00
• Price Target Upside: 5.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $133.00 ▲(8.79% 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, 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 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 strong profitability and operational efficiency with healthy margins. However, declining revenue and free cash flow growth rates pose challenges. The balance sheet reflects moderate leverage with a strong return on equity, but the company should focus on improving cash flow generation to sustain growth.

Income Statement

Johnson Controls shows a solid gross profit margin of 36.36% in TTM, indicating efficient cost management. However, the net profit margin of 9.53% and a declining revenue growth rate of -4.80% suggest challenges in maintaining top-line growth. The EBIT and EBITDA margins are healthy at 10.48% and 13.80%, respectively, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.65 in TTM is moderate, indicating a balanced approach to leveraging. The return on equity is strong at 14.02%, showcasing effective use of shareholder funds. However, the equity ratio of 36.47% suggests a moderate reliance on debt financing.

Cash Flow

The free cash flow growth rate is negative at -1.06% in TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio of 1.51 and free cash flow to net income ratio of 0.85 suggest adequate cash generation relative to net income, but the declining free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.60B	22.95B	22.33B	25.30B	23.67B	22.32B
Gross Profit	8.59B	8.08B	7.82B	8.31B	8.05B	7.42B
EBITDA	2.83B	2.80B	2.10B	2.88B	3.88B	2.08B
Net Income	1.72B	1.71B	1.85B	1.53B	1.64B	631.00M
Balance Sheet
Total Assets	37.94B	42.70B	42.24B	42.16B	41.89B	40.81B
Cash, Cash Equivalents and Short-Term Investments	379.00M	606.00M	828.00M	2.03B	1.34B	1.95B
Total Debt	9.31B	10.70B	10.14B	10.23B	9.11B	9.03B
Total Liabilities	24.98B	25.33B	24.55B	24.76B	23.14B	22.28B
Stockholders Equity	12.93B	16.10B	16.55B	16.27B	17.56B	17.45B
Cash Flow
Free Cash Flow	2.38B	1.60B	1.77B	1.50B	1.94B	1.78B
Operating Cash Flow	2.81B	2.10B	2.22B	1.99B	2.49B	2.22B
Investing Cash Flow	6.24B	-221.00M	-1.18B	-693.00M	-1.09B	-258.00M
Financing Cash Flow	-6.96B	-2.08B	-2.17B	-516.00M	-2.13B	-2.94B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 122.25 is above the 20-day moving average (MA) of 112.69, above the 50-day MA of 109.53, and above the 200-day MA of 96.86, indicating a bullish trend. The MACD of 2.96 indicates Negative momentum. The RSI at 71.87 is Negative, neither overbought nor oversold. The STOCH value of 88.20 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	78 Outperform	$96.71B	33.57	37.07%	0.84%	8.58%	20.37%
JCI	70 Outperform	$79.09B	24.03	11.86%	1.24%	-10.19%	100.65%
CSL	69 Neutral	$13.76B	18.63	32.36%	1.26%	0.14%	3.88%
CARR	68 Neutral	$47.88B	22.81	9.44%	1.56%	-7.93%	-35.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	61 Neutral	$12.34B	20.75	13.56%	―	-6.44%	-48.84%
LII	61 Neutral	$17.19B	20.68	92.25%	1.00%	3.77%	12.46%

Johnson Controls Corporate Events

Johnson Controls Reports Steady Growth in 2025 Earnings

Johnson Controls International plc, a global leader in smart, healthy, and sustainable building solutions, has released its fourth quarter and full-year 2025 financial results, highlighting its performance in the building technology and software industry. The company is renowned for its innovative solutions in advanced data center cooling and decarbonization.

Johnson Controls’ Earnings Call: Strong Growth Amid Challenges

Johnson Controls’ recent earnings call conveyed a generally positive sentiment, underscored by strong financial performance and promising growth indicators. The company reported significant increases in revenue, margins, and backlog, driven by the successful implementation of their proprietary business system. However, challenges in the APAC region, particularly in China, and impairments related to portfolio actions were noted as areas of concern.

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.

The most recent analyst rating on (JCI) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Johnson Controls stock, see the JCI Stock Forecast page.

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.

The most recent analyst rating on (JCI) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Johnson Controls stock, see the JCI Stock Forecast page.

Johnson Controls Reports Strong Q3 Results and Raises FY25 Guidance

Johnson Controls reported strong financial results for the third quarter of fiscal year 2025, with a 3% increase in sales and a 6% rise in organic sales. The company also saw a 2% organic increase in orders and an 11% growth in its systems and services backlog, which now stands at $14.6 billion. As a result of these positive outcomes, Johnson Controls has raised its full-year guidance for fiscal 2025, indicating confidence in its operational performance and market positioning.

The most recent analyst rating on (JCI) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Johnson Controls stock, see the JCI Stock Forecast page.