Taking a look at the most recent numbers in a recent 8-K filing, we can determine the short term health of the company. Adjusted earnings per share from continuing operations came in at $0.53, which is up 10 percent versus the prior year. Sales of $7.1 billion reflect an organic growth of one percent versus the prior year. Lastly, adjusted EBIT margin expansion of 90 basis points year-over-year is up to 10.7 percent. These are nice healthy gains and lead to a reassurance that the next quarters numbers are going to be well.
Switching over to the chart, we can see that price is beginning to slow down a bit. From the lows of 2009, we can see that price has increased in a drastic manner, providing many with healthy returns. Right now, I would be watching for a slight pull back and it seems price is slowing where it currently sits. Keep an open mind when looking at the chart as this can provide profits on either side.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Johnson Controls income statement, its balance sheet, and the statement of cash flows. Potential Johnson Controls investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Johnson Controls investors may use each financial statement separately, they are all related. The changes in Johnson Controls's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Johnson Controls's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Johnson Controls
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Johnson Controls performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Johnson Controls shares is the value that is considered the true value of the share. If
the intrinsic value of Johnson is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Johnson Controls. Please read more on our
fundamental analysis page.
How effective is Johnson Controls in utilizing its assets?
Johnson Controls International reports assets on its Balance Sheet. It represents the amount of Johnson resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Johnson Controls aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Building Products space. To get a better handle on how balance sheet or income statements item affect Johnson volatility, please check the breakdown of all its
fundamentals.
Are Johnson Controls Earnings Expected to grow?
The
future earnings power of Johnson Controls involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Johnson Controls factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Johnson Controls
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Johnson
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Johnson Controls earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Johnson Controls dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Johnson one year expected dividend income is about USD0.96 per share.
As of now, Johnson Controls'
Dividends Paid is increasing as compared to previous years. The Johnson Controls' current
Dividend Paid And Capex Coverage Ratio is estimated to increase to 4.76, while
Dividend Yield is projected to decrease to 0.03.
Investing in dividend-paying stocks, such as Johnson Controls International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Johnson Controls must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Johnson Controls. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Johnson Controls Gross Profit
Johnson Controls Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Johnson Controls previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Johnson Controls Gross Profit growth over the last 10 years. Please check Johnson Controls'
gross profit and other
fundamental indicators for more details.
Is Johnson Controls valued properly by the market?
Risks
For a full list of the risks, you can take a look at the most recent SEC 10-K filing and that will provide you with anything the company views as a potential risk. Here are a few to keep in mind while you’re doing your research. First, general economic, credit, and capital market conditions could adversely affect their financial performance. This can be noted on the chart in 2009. Secondly, this company operates in a very cyclical industry and this will have an adverse affect on the company at certain times. Lastly, a decrease in demand and the inability to compete effectively will have an adverse affect on the company.
Conclusion
This company is based in another country, so that would be something to note before diving to deep. There will be other factors such a currency that could adversely affect the company. However, be sure to complete your own research because this could be a solid fit for your portfolio. If you still have questions after you’ve done your own research, be sure to research out to an investing professional and they can help determine if this company will add value to your portfolio or if you should pass on it.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Johnson Controls International. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com