One-glance verdict
Overvalued
$55.05 our estimate vs market $143.28
Wall Street consensus: $164.05 (198.0% higher than our fair-value estimate)
160% above our estimate, beyond the bull case
Fundamentals snapshot
Johnson Controls International plc
JCI · NYQ · Industrials · Building Products & Equipment
Current price
$143.28
52-week range
$104.49 - $157.06
Market cap
$86.79B
Balance sheet
Watch
12.46x Strong cushion
Net debt $8.83B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 14.3% on equity, ahead of 20% of its peers.
- Risk Stock trades 67.3% above its 5-year average P/E.
- Risk Net debt grew 37.1% over 3 years.
What this company does
Johnson Controls International plc
Johnson Controls makes the essential systems that run large buildings, from heating and air conditioning to fire and security systems, for customers like hospitals and data centers. The company earns a large part of its money from long-term service contracts to maintain this equipment, creating a steady stream of sales. This matters because their technology helps make buildings smarter and more energy-efficient, a growing priority for businesses and governments worldwide.
How the company got here
Johnson Controls started in 1885 when Professor Warren Johnson invented the first electric room thermostat. For much of its history, the company focused on controlling the temperature in non-residential buildings. Over the years, it grew by acquiring other companies, including those in the automotive battery and seating businesses, and a major heating and air-conditioning company called York International. A significant turning point was in 2016 when it merged with Tyco International, a large fire protection and security company, and officially became Johnson Controls International, based in Ireland.
What it actually does
Johnson Controls is a company that makes buildings smart, safe, and comfortable. Think about the systems in a large office building, hospital, or school that you don't usually see: the heating, ventilation, and air conditioning (HVAC) that keep the temperature just right, the fire alarms and sprinkler systems, and the security cameras and access controls. Johnson Controls designs, manufactures, installs, and services all of these crucial systems to make sure buildings are efficient and safe for the people inside. They also provide software and services to help building owners manage energy use and reduce their environmental impact.
Building Solutions North America
This is the company's largest business segment, operating in the United States and Canada. It provides the full range of Johnson Controls' offerings, from heating and cooling equipment to fire and security systems, directly to building owners. A big part of this segment is not just selling new systems, but also providing long-term services, like maintenance (regular check-ups to keep things running smoothly) and retrofitting older buildings with newer, more energy-efficient technology. This segment has seen strong growth, especially from sales of large-scale cooling systems for data centers (the buildings that house the computers for the internet).
Building Solutions EMEA/LA
This segment does the same kind of work as the North American one, but it covers Europe, the Middle East, Africa, and Latin America. It sells, installs, and services the essential systems that keep large buildings running efficiently and safely. This includes everything from advanced climate control systems to sophisticated fire detection and security solutions. A significant portion of its business comes from providing technical services to upgrade and maintain existing equipment in buildings.
Building Solutions Asia Pacific
This division serves the Asia-Pacific region, offering the same products and services as the other Building Solutions segments. It focuses on installing and servicing HVAC, fire, and security systems for commercial and institutional buildings. While it provides a full range of solutions, this segment's performance can be affected by the economic conditions in the region, particularly in China. Like the other segments, a key part of its business is providing ongoing services to customers after the initial installation.
Global Products
This part of the company is focused on manufacturing and selling the individual products that go into making a building smart and safe. Instead of managing a whole installation project, this segment sells things like HVAC equipment, refrigeration systems, and fire and security products to distributors and contractors. This includes well-known brands like York for air conditioners and Tyco for security and fire safety. This segment acts as a supplier to the industry, providing the hardware that its own service teams and other companies install.
What management is betting on now
The company is heavily focused on making buildings more sustainable and energy-efficient. Management is betting that building owners will increasingly invest in modern systems to lower their energy costs and reduce their carbon footprint (the total amount of greenhouse gases generated by their actions). A key part of this strategy is their OpenBlue platform, a suite of software and services that uses artificial intelligence to help manage buildings more intelligently. They are also concentrating on providing solutions for high-growth areas like data centers, which require massive amounts of cooling to operate effectively.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$922.00M
FY2024 Q4
$1.18B
FY2025 Q1
$133.00M
FY2025 Q2
$456.00M
FY2025 Q3
$693.00M
FY2025 Q4
$838.00M
FY2026 Q1
$531.00M
FY2026 Q2
$604.00M
Revenue
$6.14B
Net income
$613.00M
Diluted EPS
1.00
Operating cash flow
$672.00M
Free cash flow
$604.00M
Fetching…
Sources
Revenue
$5.80B
Net income
$524.00M
Diluted EPS
0.85
Operating cash flow
$611.00M
Free cash flow
$531.00M
Fetching…
Sources
Revenue
$6.44B
Net income
$1.69B
Diluted EPS
2.61
Operating cash flow
$968.00M
Free cash flow
$838.00M
Fetching…
Sources
Revenue
$6.05B
Net income
$701.00M
Diluted EPS
1.07
Operating cash flow
$787.00M
Free cash flow
$693.00M
Fetching…
Sources
Revenue
$5.68B
Net income
$478.00M
Diluted EPS
0.72
Operating cash flow
$550.00M
Free cash flow
$456.00M
Fetching…
Sources
Revenue
$5.43B
Net income
$419.00M
Diluted EPS
0.63
Operating cash flow
$249.00M
Free cash flow
$133.00M
Fetching…
Sources
Revenue
$2.93B
Net income
$633.00M
Diluted EPS
0.93
Operating cash flow
$1.35B
Free cash flow
$1.18B
Fetching…
Sources
Revenue
$7.23B
Net income
$975.00M
Diluted EPS
1.45
Operating cash flow
$1.02B
Free cash flow
$922.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $55.05 vs current price $143.28
Wall Street consensus is the average analyst price target: $164.05 (198.0% higher than our fair-value estimate).
Our most-likely fair value is $55.05 a share — about 61.6% below today's price of $143.28, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $8.8B. Interest coverage 12.5x.
Net debt
$8.83B
Interest coverage
12.46x
Johnson Controls International plc's profit covers its interest bill about 12.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
JCI
BASELINE
Johnson Controls International plc
Total debt $9.48B Interest coverage 12.46x This is the baseline the peer rows are being compared against.
Total debt $4.62B Interest coverage 17.50x +40% vs JCI Carries about 1.4x more debt cushion than JCI.
Total debt $12.39B Interest coverage 4.16x -67% vs JCI Carries about 3.0x less debt cushion than JCI.
Total debt $34.96B Interest coverage 4.89x -61% vs JCI Carries about 2.5x less debt cushion than JCI.
Total debt $2.02B Interest coverage 22.70x +82% vs JCI Carries about 1.8x more debt cushion than JCI.
Total debt $8.85B Interest coverage 11.32x -9% vs JCI Has roughly the same debt cushion as JCI.
What you should know
The case for and against JCI
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 14.3% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 67.3% above its 5-year average P/E.
-
Net debt grew 37.1% over 3 years.
-
Insider ownership is only 0.2% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
39.69x
Forward P/E
23.59x
P/B
6.44x
P/S
3.47x
EV/EBITDA
22.12x
PEG ratio
1.61x
Profitability
How much profit each dollar creates
Gross margin
36.7%
Operating margin
15.9%
Net margin
14.3%
ROE
14.3%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
1.00x
Quick ratio
0.68x
Total debt
$9.48B
Total cash
$641.00M
Growth
How the business has been compounding
Revenue TTM
$24.43B
Revenue 5Y CAGR
-0.1%
EPS TTM
3.61
EPS 5Y CAGR
31.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.04B
Free CF TTM
$2.12B
FCF margin
8.7%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
45.1%
Last ex-div date
2026-09-21