Last Updated: 10 Nov 2024
Executive Summary
Johnson Controls International PLC (JCI) is a global leader in the building technology industry. The company's strong financial performance, competitive advantages, and favorable long-term outlook make it an attractive investment opportunity.
Company Overview
JCI is an Irish-domiciled multinational conglomerate that produces fire, HVAC, and security equipment for buildings. The company has a global presence with operations in over 150 countries. JCI's customers include commercial, industrial, and residential buildings, as well as government agencies.
Fundamental Analysis
Revenue: JCI's revenue has grown steadily in recent years, reaching $22.95 billion in the trailing twelve months (TTM). The company's revenue is expected to continue to grow in the future, driven by increased demand for its products and services.
Earnings: JCI's earnings have also grown steadily in recent years, reaching $2.15 per share in the TTM. The company's earnings are expected to continue to grow in the future, driven by increased revenue and cost-cutting initiatives.
Profitability: JCI's profitability metrics are strong. The company's gross profit margin is 39.5%, and its operating margin is 14.4%. JCI's profitability is expected to remain strong in the future.
Balance Sheet: JCI's balance sheet is strong. The company has $5.6 billion in cash and equivalents and $12.3 billion in debt. JCI's debt-to-equity ratio is 0.57, which is below the industry average.
Valuation: JCI's stock is currently trading at a trailing PE ratio of 39.36. This is above the industry average, but it is justified by the company's strong financial performance and growth prospects.
Technical Analysis
JCI's stock price has been in a strong uptrend in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's technical indicators are also bullish, suggesting that the uptrend is likely to continue.
Short Term Outlook
JCI's stock price is expected to continue to rise in the short term. The company's strong financial performance and favorable technical indicators suggest that the stock is likely to continue to outperform the market.
Long Term Outlook
JCI's long-term outlook is also positive. The company's strong competitive advantages and favorable industry trends are expected to drive continued growth in the future. JCI's stock is a good investment for investors who are looking for long-term growth.
Analyst Recommendations
The majority of analysts recommend buying JCI's stock. The average analyst target price is $83.76, which represents a potential upside of 1.0% from the current price.
