Johnson Story

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JCI -- USA Stock  

USD 46.41  0.25  0.54%

Johnson Controls Free Cash Flow is most likely to increase significantly in the upcoming years. The last year's value of Free Cash Flow was reported at 739.45 Million. The current Invested Capital is estimated to increase to about 19.5 B, while Net Income Per Employee is projected to decrease to roughly 12 K. While many traders today are more concerned about the preservation of capital over market returns, Johnson Controls International could be one exception. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting Johnson Controls' services, and outline how it will impact the outlook for investors this year.
Published over two weeks ago
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Is Johnson Controls (NYSE:JCI) ripping up stockholders?
Johnson Controls Int reported the last year's revenue of 22.64 B. Total Income to common stockholders was 802 M with profit before taxes, overhead, and interest of 7.69 B. The company has Net Profit Margin of 3.54 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 10.79 %, which entails that for every 100 dollars of revenue, it generated 0.11 of operating income.

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 $0.61 per share.
Johnson Controls Dividend Yield is most likely to increase slightly in the upcoming years. The last year's value of Dividend Yield was reported at 0.025. The current Dividends per Basic Common Share is estimated to increase to 1.40, while Payment of Dividends and Other Cash Distributions is projected to decrease to (852.4 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-790 M-852.4 M
Dividend Yield 0.025  0.0332 
Dividends per Basic Common Share 1.20  1.40 
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.

How important is Johnson Controls's Liquidity

Johnson Controls financial leverage refers to using borrowed capital as a funding source to finance Johnson Controls International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Johnson Controls financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Johnson Controls's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Johnson Controls, but it might be worth checking our own buy vs. sell analysis

What did Johnson Controls file with SEC?

The SEC filings are financial statements or other formal documents of Johnson Controls International that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Johnson shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Results of Operations and Financial Condition
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Johnson shareholders may or may not be submitted as SEC does not always require it.

Another Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Johnson Controls has an asset utilization ratio of 76.5 percent. This implies that the company is making $0.76 for each dollar of assets. An increasing asset utilization means that Johnson Controls International is more efficient with each dollar of assets it utilizes for everyday operations.

Will Johnson continue to rise?

Potential upside is down to 2.84. It may hint to a possible volatility drop. Johnson Controls International currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.19. However, we do advice investors to further question Johnson Controls International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

While some other entities within the engineering & construction industry are still a little expensive, even after the recent corrections, Johnson Controls may offer a potential longer-term growth to stockholders. To conclude, as of the 7th of November 2020, our latest 30 days buy-hold-sell advice on the company is Strong Hold. We believe Johnson Controls is currently overvalued with below average probability of distress for the next two years.

About Contributor

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 Ellen Johnson do not own shares of Johnson Controls International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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