Stock of the Day

October 5, 2021

Johnson Controls International (JCI)

$85.23
-$3.60 (-4.1%)
Market Cap: $58.64B

About Johnson Controls International

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. It also 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. In addition, the company offers control software and software services for residential and commercial applications. Johnson Controls International plc was incorporated in 1885 and is headquartered in Cork, Ireland.

Johnson Controls International Bull Case

Here are some ways that investors could benefit from investing in Johnson Controls International plc:

  • The company has demonstrated strong earnings performance, reporting an EPS of $0.64, which exceeded the consensus estimate by $0.05, indicating robust financial health and effective management.
  • Johnson Controls International plc has a solid market capitalization of $59.83 billion, reflecting its significant presence and stability in the market, which can be attractive to investors seeking reliable investments.
  • The stock is currently trading around $81.78, which is above its 50-day moving average, suggesting positive momentum and potential for further growth.
  • With a dividend yield of 1.63% and a consistent quarterly dividend payout of $0.37 per share, the company provides a steady income stream for investors, enhancing its appeal as a dividend stock.
  • The company has a manageable debt-to-equity ratio of 0.50, indicating a balanced approach to leveraging, which can reduce financial risk and enhance long-term stability.

Johnson Controls International Bear Case

Investors should be bearish about investing in Johnson Controls International plc for these reasons:

  • The price-to-earnings (P/E) ratio of 34.59 is relatively high, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • The company has a beta of 1.32, indicating higher volatility compared to the market, which may pose risks for conservative investors looking for stable investments.
  • With a quick ratio of 0.86, the company may face challenges in meeting its short-term liabilities without selling inventory, which could raise concerns about liquidity.
  • The P/E/G ratio of 1.98 suggests that the stock's price is high relative to its growth rate, which may indicate that future growth expectations are already priced in, limiting upside potential.
  • Despite a positive net margin of 6.83%, the overall profitability may be impacted by market fluctuations and economic conditions, which could affect future earnings stability.

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