📊 JCI Key Takeaways
Is Johnson Controls International plc (JCI) a Good Investment?
JCI demonstrates financial stability with strong debt serviceability (14.2x interest coverage) and positive free cash flow generation, but faces operational headwinds with net income declining 6.3% YoY despite 2.8% revenue growth, indicating margin compression. Tight liquidity (1.04x current ratio, 0.85x quick ratio) combined with low capital returns (8.4% ROE, 3.0% ROA) suggest deteriorating operational efficiency despite a substantial revenue base.
Johnson Controls shows solid underlying operating quality, with healthy gross and operating margins, strong interest coverage, and positive free cash flow generation. However, growth is modest, net income declined year over year, and returns on equity and assets remain relatively weak, which suggests the business is fundamentally stable but not clearly accelerating. Overall, the company appears financially sound, but the current fundamentals support a balanced rather than aggressive view.
Johnson Controls International plc Key Strengths (JCI)
- Strong interest coverage ratio of 14.2x indicates solid debt servicing capability
- Positive free cash flow of $424M with reasonable capex discipline (148M)
- Moderate leverage at 0.64x debt-to-equity ratio within manageable range
- Solid operating margin of 12.1% demonstrates operational efficiency at margin level
- Healthy profitability profile with 35.8% gross margin and 12.2% operating margin
- Positive free cash flow of $492M with an 8.5% FCF margin
- Manageable leverage supported by 16.9x interest coverage and moderate 0.66x debt-to-equity
JCI Stock Risks: Johnson Controls International plc Investment Risks
- Net income declining 6.3% YoY while revenue grows 2.8% signals margin compression and operational stress
- Tight liquidity ratios (current 1.04x, quick 0.85x) create vulnerability to working capital disruptions
- Low return metrics (8.4% ROE, 3.0% ROA) indicate inefficient capital deployment
- Significant long-term debt of $8.6B against equity of $13.5B limits financial flexibility
- Net income declined 6.3% year over year despite modest revenue growth
- Low ROE of 4.0% and ROA of 1.4% indicate limited capital efficiency
- Tight liquidity with a 0.99x current ratio, 0.81x quick ratio, and relatively low cash versus long-term debt
Key Metrics to Watch
- Net margin trend - critical to reverse the -6.3% YoY decline
- Operating cash flow sustainability and FCF conversion quality
- Debt reduction progress and working capital optimization to improve liquidity ratios
- Operating margin and net income trend
- Free cash flow conversion and liquidity ratios
Johnson Controls International plc (JCI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility.
JCI Profit Margin, ROE & Profitability Analysis
JCI vs Market Sector: How Johnson Controls International plc Compares
How Johnson Controls International plc compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Johnson Controls International plc Stock Overvalued? JCI Valuation Analysis 2026
Based on fundamental analysis, Johnson Controls International plc has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Johnson Controls International plc Balance Sheet: JCI Debt, Cash & Liquidity
JCI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Johnson Controls International plc's revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $2.69 reflects profitable operations.
JCI Revenue Growth, EPS Growth & YoY Performance
JCI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $5.7B | $478.0M | $0.72 |
| Q1 2026 | $5.4B | $419.0M | $0.63 |
| Q3 2025 | $5.9B | $701.0M | $1.07 |
| Q2 2025 | $5.6B | $97.0M | $0.14 |
| Q1 2025 | $5.2B | $374.0M | $0.55 |
| Q3 2024 | $7.1B | $975.0M | $1.45 |
| Q2 2024 | $6.7B | $97.0M | $0.14 |
| Q1 2024 | $6.1B | $118.0M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Johnson Controls International plc Dividends, Buybacks & Capital Allocation
JCI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Johnson Controls International plc (CIK: 0000833444)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JCI
What is the AI rating for JCI?
Johnson Controls International plc (JCI) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JCI's key strengths?
Claude: Strong interest coverage ratio of 14.2x indicates solid debt servicing capability. Positive free cash flow of $424M with reasonable capex discipline (148M). ChatGPT: Healthy profitability profile with 35.8% gross margin and 12.2% operating margin. Positive free cash flow of $492M with an 8.5% FCF margin.
What are the risks of investing in JCI?
Claude: Net income declining 6.3% YoY while revenue grows 2.8% signals margin compression and operational stress. Tight liquidity ratios (current 1.04x, quick 0.85x) create vulnerability to working capital disruptions. ChatGPT: Net income declined 6.3% year over year despite modest revenue growth. Low ROE of 4.0% and ROA of 1.4% indicate limited capital efficiency.
What is JCI's revenue and growth?
Johnson Controls International plc reported revenue of $11.9B.
Does JCI pay dividends?
Johnson Controls International plc pays dividends, with $489.0M distributed to shareholders in the trailing twelve months.
Where can I find JCI SEC filings?
Official SEC filings for Johnson Controls International plc (CIK: 0000833444) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JCI's EPS?
Johnson Controls International plc has a diluted EPS of $1.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is JCI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Johnson Controls International plc has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is JCI stock overvalued or undervalued?
Valuation metrics for JCI: ROE of 8.4% (sector avg: 15%), net margin of 9.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is JCI's AI grade for 2026?
Our dual AI analysis gives Johnson Controls International plc a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is JCI's free cash flow?
Johnson Controls International plc's operating cash flow is $572.0M, with capital expenditures of $148.0M. FCF margin is 3.6%.
How does JCI compare to other Market stocks?
Vs Default sector averages: Net margin 9.5% (avg: 12%), ROE 8.4% (avg: 15%), current ratio 1.04 (avg: 1.8).