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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 47.7GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.2%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.40%
Trailing Yield
$1.40
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
50%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Johnson Controls International plc (JCI) receives a "Hold" rating with a composite score of 51.5/100, ranked #723 out of 4446 stocks. Key factor scores: Quality 48/100, Value 41/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
Johnson Controls International plc (JCI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Johnson Controls International plc Do?
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. Johnson Controls International plc (JCI) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO George R. Oliver and employs approximately 102,000 people, headquartered in CORK, Wisconsin. With a market capitalization of $82.5B, JCI is one of the prominent companies in the Industrials sector.
Johnson Controls International plc (JCI) Stock Rating — Hold (April 2026)
As of April 2026, Johnson Controls International plc receives a Hold rating with a composite score of 51.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.JCI ranks #723 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Johnson Controls International plc ranks #123 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
JCI Stock Price and 52-Week Range
Johnson Controls International plc (JCI) currently trades at $142.53. The stock gained $0.68 (0.5%) in the most recent trading session. The 52-week high for JCI is $146.49, which means the stock is currently trading -2.7% from its annual peak. The 52-week low is $68.03, putting the stock 109.5% above its annual trough. Recent trading volume was 3.6M shares, reflecting moderate market activity.
Is JCI Overvalued or Undervalued? — Valuation Analysis
Johnson Controls International plc (JCI) carries a value factor score of 41/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 35.74x, compared to the Industrials sector average of 28.33x — a premium of 26%. The price-to-book ratio stands at 6.16x, versus the sector average of 2.23x. The price-to-sales ratio is 3.55x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, JCI trades at 35.10x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 37.96x.
Overall, JCI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Johnson Controls International plc Profitability — ROE, Margins, and Quality Score
Johnson Controls International plc (JCI) earns a quality factor score of 48/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 17.2%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 6.0% versus the sector average of 3.3%.
On a margin basis, Johnson Controls International plc reports gross margins of 36.2%, compared to 35.8% for the sector. The operating margin is 10.1% (sector: 6.2%). Net profit margin stands at 9.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at -19.8% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
JCI Debt, Balance Sheet, and Financial Health
Johnson Controls International plc has a debt-to-equity ratio of 187.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.99x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $9.71B.
JCI has a beta of 1.09, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Johnson Controls International plc is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Johnson Controls International plc Revenue and Earnings History — Quarterly Trend
In TTM 2026, Johnson Controls International plc reported revenue of $22.95B and earnings per share (EPS) of $0.86. Net income for the quarter was $2.28B. Gross margin was 36.2%. Operating income came in at $2.32B.
In Q1 2026, Johnson Controls International plc reported revenue of $5.80B and earnings per share (EPS) of $0.86. Net income for the quarter was $525M. Gross margin was 35.8%. Revenue grew 6.8% year-over-year compared to Q1 2025. Operating income came in at $708M.
In FY 2025, Johnson Controls International plc reported revenue of $23.60B and earnings per share (EPS) of $5.04. Net income for the quarter was $3.51B. Gross margin was 36.4%. Revenue grew 2.8% year-over-year compared to FY 2024. Operating income came in at $1.97B.
In Q3 2025, Johnson Controls International plc reported revenue of $6.05B and earnings per share (EPS) of $1.07. Net income for the quarter was $778M. Gross margin was 37.1%. Revenue grew -16.3% year-over-year compared to Q3 2024. Operating income came in at $705M.
Over the past 8 quarters, Johnson Controls International plc has demonstrated a growth trajectory, with revenue expanding from $7.23B to $22.95B. Investors analyzing JCI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
JCI Dividend Yield and Income Analysis
Johnson Controls International plc (JCI) currently pays a dividend yield of 1.4%. At this yield, a $10,000 investment in JCI stock would generate approximately $$140.00 in annual dividend income. The net margin of 9.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
JCI Momentum and Technical Analysis Profile
Johnson Controls International plc (JCI) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 38/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 35/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
JCI vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing JCI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full JCI vs S&P 500 (SPY) comparison to assess how Johnson Controls International plc stacks up against the broader market across all factor dimensions.
JCI Next Earnings Date
No upcoming earnings date has been announced for Johnson Controls International plc (JCI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy JCI? — Investment Thesis Summary
Johnson Controls International plc presents a balanced picture with arguments on both sides. Price momentum is positive at 66/100, suggesting the trend favors buyers. Low volatility (stability score 74/100) reduces downside risk.
In summary, Johnson Controls International plc (JCI) earns a Hold rating with a composite score of 51.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on JCI stock.
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Institutional Research Dossier
Johnson Controls International plc (JCI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Johnson Controls International plc (JCI) receives a Hold rating, driven by a mixed financial profile and a valuation that appears stretched relative to its growth prospects. While the company benefits from a leading position in the building solutions and products market, its high P/E ratio and EV/EBITDA multiple compared to the sector suggest limited near-term upside, balancing the potential for long-term growth in smart building technologies.
The company's strong operating margins and return on equity indicate efficient operations, but revenue volatility and a high debt-to-equity ratio raise concerns. The Hold rating reflects the need for improved revenue growth and debt management to justify the current valuation, despite the company's solid market position and profitability.
Business Strategy & Overview
Johnson Controls operates as a global leader in building solutions and products, focusing on engineering, manufacturing, and servicing heating, ventilation, air conditioning (HVAC), and security systems. The company's business model centers around providing integrated solutions for commercial, industrial, retail, and governmental customers, emphasizing energy efficiency and smart building technologies. This includes designing, installing, and maintaining building management systems, refrigeration, and fire detection and suppression systems.
The company's strategic positioning involves leveraging its extensive product portfolio and service capabilities to capture market share in both new construction and retrofit projects. Johnson Controls is increasingly focused on data-driven smart building solutions, aiming to enhance building performance and reduce operational costs for its clients. This strategic shift aligns with the growing demand for sustainable and efficient building technologies, driven by regulatory pressures and corporate sustainability initiatives.
Johnson Controls operates through three main segments: Building Solutions North America, Building Solutions EMEA/LA, and Building Solutions Asia Pacific, along with a Global Products segment. Each segment caters to specific regional needs while maintaining a consistent focus on delivering integrated building solutions. The company's global presence allows it to capitalize on diverse market opportunities and adapt its offerings to local requirements.
The company's product pipeline includes advancements in HVAC systems, building automation, and security technologies, with a strong emphasis on digital integration and connectivity. Johnson Controls invests in research and development to maintain its competitive edge and introduce innovative solutions that address evolving customer needs. This includes developing advanced control systems, energy-efficient equipment, and cloud-based platforms for building management.
In the broader industry context, Johnson Controls competes with other major players in the building solutions market, such as Siemens, Honeywell, and Schneider Electric. The industry is characterized by increasing demand for energy-efficient and smart building technologies, driven by factors such as urbanization, climate change, and regulatory mandates. Johnson Controls aims to differentiate itself through its comprehensive product portfolio, global reach, and focus on integrated solutions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-19.8%
Sector: 6.4%
-411% VS SCTR
Economic Moat Analysis
Johnson Controls possesses a narrow economic moat, primarily derived from switching costs and, to a lesser extent, intangible assets. The company's integrated building solutions, which include HVAC, security, and automation systems, create significant switching costs for customers. Once these systems are installed and integrated into a building's infrastructure, replacing them becomes expensive and disruptive, fostering customer retention.
The switching costs are further amplified by the long-term service and maintenance contracts that Johnson Controls offers. These contracts provide recurring revenue and strengthen customer relationships, making it less likely for customers to switch to competitors. The complexity of integrating different building systems also contributes to the switching costs, as customers prefer to rely on a single provider for comprehensive solutions.
The company's brand reputation and established presence in the building solutions market also contribute to its narrow moat. Johnson Controls has a long history of providing reliable and innovative products, which has built trust among its customers. This brand recognition provides a competitive advantage, particularly in markets where quality and reliability are paramount.
However, the moat is not wide due to the presence of strong competitors and the commoditization of certain building products. While Johnson Controls offers integrated solutions, many of its individual products, such as HVAC equipment, face intense competition from other manufacturers. This limits the company's ability to command premium pricing and maintain high margins across its entire product portfolio.
Furthermore, the industry is subject to technological disruptions, such as the emergence of new building automation platforms and energy-efficient technologies. Johnson Controls must continuously innovate and adapt to these changes to maintain its competitive edge and prevent its moat from eroding. The company's investment in research and development is crucial for sustaining its narrow moat in the face of technological advancements.
In summary, Johnson Controls' narrow economic moat is supported by switching costs associated with its integrated building solutions and its established brand reputation. However, the presence of strong competitors and the commoditization of certain products limit the moat's width, requiring ongoing innovation and adaptation to maintain its competitive advantage.
Financial Health & Profitability
Johnson Controls' financial health presents a mixed picture. The company's revenue has been volatile, with a TTM revenue of $5.80 billion and a significant revenue decline of -19.8% compared to the sector average of 6.6%. This decline is concerning and warrants further investigation into the underlying causes, such as project delays, market conditions, or competitive pressures. However, looking at the quarterly financial history, revenue has been fluctuating, with Q1 FY2026 at $5.80B, FY2025 at $23.60B, and FY2024 at $22.95B, indicating some level of recovery.
Despite the revenue volatility, Johnson Controls demonstrates strong profitability metrics. The company's gross margin of 36.2%, operating margin of 10.1%, and net margin of 9.9% all exceed the sector averages of 35.8%, 6.2%, and 3.7%, respectively. This suggests that Johnson Controls is efficient in managing its costs and generating profits from its operations. The quarterly financial history also supports this, with operating margins consistently above sector averages, particularly in Q1 FY2026 at 12.2% and Q3 FY2025 at 11.6%.
The company's return on equity (ROE) of 17.2% is significantly higher than the sector average of 9.2%, indicating efficient use of equity to generate profits. This strong ROE is a positive sign for investors, as it demonstrates the company's ability to generate returns on its investments. However, the high debt-to-equity ratio of 187.00 compared to the sector average of 70.00 raises concerns about the company's leverage. This high level of debt could increase financial risk and limit the company's flexibility to pursue growth opportunities.
Johnson Controls' current ratio of 0.99 indicates that the company has slightly less current assets than current liabilities, which could pose a liquidity risk if short-term obligations cannot be met. The company's free cash flow (FCF) of $2.85 billion is a positive sign, as it demonstrates the company's ability to generate cash from its operations. This cash flow can be used to fund investments, pay down debt, or return capital to shareholders.
Overall, Johnson Controls' financial health is characterized by strong profitability and cash flow generation, but also by revenue volatility and high leverage. The company needs to address its revenue decline and manage its debt levels to improve its financial stability and support future growth. While the company's profitability metrics are impressive, the high debt-to-equity ratio and fluctuating revenue trends warrant caution.
Valuation Assessment
Johnson Controls' valuation presents a mixed picture, with some metrics suggesting overvaluation while others indicate potential value. The company's P/E ratio of 150.8x is significantly higher than the sector average of 27.7x, indicating that the stock is trading at a premium relative to its earnings. This high P/E ratio could be a result of investor expectations for future growth, but it also suggests that the stock may be overvalued based on its current earnings.
Similarly, the company's EV/EBITDA multiple of 28.0x is substantially higher than the sector average of 5.7x, further supporting the argument that the stock is overvalued. This high EV/EBITDA multiple suggests that investors are paying a premium for the company's earnings before interest, taxes, depreciation, and amortization. However, it could also reflect the company's strong market position and potential for future growth in the building solutions market.
The company's free cash flow yield, calculated using the market cap and free cash flow data provided, is approximately 3.6%. This yield is relatively low compared to other investment opportunities, suggesting that the stock may not be attractive to value investors seeking high cash flow returns. However, the company's strong free cash flow generation provides flexibility for future investments and shareholder returns.
Considering the company's historical growth and profitability, the current valuation appears stretched. While Johnson Controls has demonstrated strong operating margins and return on equity, its revenue growth has been volatile, and its high debt-to-equity ratio raises concerns about financial risk. These factors suggest that the current valuation may not be justified by the company's fundamentals.
However, the company's leading position in the building solutions market and its focus on smart building technologies could support a premium valuation. As the demand for energy-efficient and sustainable building solutions continues to grow, Johnson Controls is well-positioned to benefit from this trend. This potential for future growth could justify a higher valuation compared to its peers.
In conclusion, Johnson Controls' valuation appears expensive based on its P/E ratio and EV/EBITDA multiple compared to the sector average. While the company's strong profitability and cash flow generation are positive factors, its volatile revenue growth and high leverage warrant caution. The current valuation may be justified by the company's potential for future growth in the building solutions market, but investors should carefully consider the risks and uncertainties before investing in the stock.
Risk & Uncertainty
Several risks and uncertainties could impact Johnson Controls' performance. One significant risk is the cyclical nature of the construction industry. Demand for building solutions and products is closely tied to construction activity, which can fluctuate based on economic conditions, interest rates, and government policies. A slowdown in construction activity could negatively impact Johnson Controls' revenue and profitability.
Another risk is the intense competition in the building solutions market. Johnson Controls faces competition from other major players, such as Siemens, Honeywell, and Schneider Electric, as well as smaller regional competitors. This competition could lead to pricing pressures and reduced market share, particularly in commoditized product categories. The company must continuously innovate and differentiate its offerings to maintain its competitive edge.
Technological disruptions also pose a risk to Johnson Controls. The building solutions market is rapidly evolving with the emergence of new technologies, such as cloud-based building management platforms, advanced sensors, and energy-efficient equipment. Johnson Controls must invest in research and development to stay ahead of these technological changes and avoid being disrupted by new entrants.
The company's high debt-to-equity ratio also presents a financial risk. High leverage can increase financial vulnerability and limit the company's flexibility to pursue growth opportunities. Johnson Controls needs to manage its debt levels carefully to avoid financial distress, especially in the event of an economic downturn or a decline in revenue.
Regulatory changes and environmental concerns could also impact Johnson Controls. The building solutions market is subject to various regulations related to energy efficiency, safety, and environmental standards. Changes in these regulations could require Johnson Controls to adapt its products and services, which could increase costs and reduce profitability. Furthermore, increasing environmental concerns could drive demand for more sustainable building solutions, requiring Johnson Controls to invest in new technologies and products.
Bulls Say / Bears Say
The Bull Case
BULL VIEWJohnson Controls is well-positioned to benefit from the growing demand for energy-efficient and smart building solutions, driven by regulatory pressures and corporate sustainability initiatives.
BULL VIEWThe company's strong operating margins and return on equity demonstrate efficient operations and the ability to generate profits from its investments.
BULL VIEWJohnson Controls' focus on integrated building solutions and long-term service contracts creates switching costs for customers, fostering customer retention and recurring revenue.
The Bear Case
BEAR VIEWJohnson Controls' high P/E ratio and EV/EBITDA multiple compared to the sector average suggest that the stock is overvalued and may not offer attractive returns at current levels.
BEAR VIEWThe company's volatile revenue growth and high debt-to-equity ratio raise concerns about its financial stability and ability to navigate economic downturns.
BEAR VIEWIntense competition in the building solutions market and the potential for technological disruptions could erode Johnson Controls' market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score JCI and 4,400+ other equities.
Johnson Controls International plc exhibits a 332% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
36.2%
Sector: 35.8%
Operating Margin
Core business profitability
10.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
9.9%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $140 annually in dividends at the current trailing rate.
