Johnson Controls (JCI)
Industrials · NYSE · US
Fundamentals
Valuation and ratings
Johnson Controls trades at $141.26, close to the $125.89 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 43.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Johnson Controls
Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company designs, manufactures, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and digital solutions. It also provides energy solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven building solutions. It sells its products and services to commercial, residential security, institutional, industrial, data center, marine, and governmental customers. Johnson Controls International plc was incorporated in 1885 and is based in Cork, Ireland.
JCI passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Johnson Controls (JCI) undervalued?
Against our discounted cash flow estimate of $125.89, JCI at $141.26 is 11% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is JCI's P/E ratio?
JCI trades at 43.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.