NYSE:JCI
$31.55
(3/11 6:40PM)
+1.2%
| Open | $31.24 |
Mkt Cap | $21.0 Billion |
| High | $31.6 |
52Wk High | $32.71 |
| Low | $31.02 |
52Wk Low | $11.78 |
| Volume | 3.5 Million |
Avg Vol 10D | 4.1 Million |
Ockham's Rating/Recommendation Summary
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JCI Revenue
As a value investing shop, we are interested in seeing how JCI's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.68x and the low end of the range at 0.38x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for JCI of 0.74x is well above its historical average. This means that JCI looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 38% just to return JCI to its historical average.
JCI Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. JCI is above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for JCI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 20.69 and a 9.53 low over the same period.
Given this range of ratios per share, JCI at its current price of $32.38 and a Price to Cash Earnings ratio of 16.03 is 6% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about JCI because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 15.11 would significantly improve our outlook for JCI given the current profit levels.
JCI Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for JCI, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. JCI’s estimated annual dividend is $0.52 resulting in a current dividend yield of 1.61%. The highest dividend yield from JCI over recent history was 6.23% while the lowest dividend yield was 0.77%. With that range in mind, JCI’s current dividend yield is a full 54.00% below its median dividend yield historically. This is a negative from our perspective.
WSJ Marketbeat Discussed Dividends and JCI
For income investors, dividend news is obviously important. JCI's dividends were discussed recently on WSJ Marketbeat.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Johnson Controls, Incorporated has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on JCI because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… we are beginning to see the capital markets thaw for auto parts makers with today’s news of Tower International’s planned $100 million IPO and JOHNSON CONTROLS $500 million ... …”
Fast Money Has News on JCI
The latest news from Fast Money on JCI is available through Ockham's news analytics platform RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Johnson Controls, Incorporated has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on JCI because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Second derivative trade off all of this JOHNSON CONTROLS trading very well as ford is also so if you don't want ford take a look at JOHNSON CONTROLS. > > > …”
RazorWire has Detected News About JCI on Fast Money
News has broken via the television and viral blogs regarding JCI, so investors should take an interest in learning what was said.
In comparison to the other stocks that we follow, Johnson Controls, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. As of this week's report, we have an Overvalued valuation on JCI because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… I think those shorts will get squeezed, and a name that i've been wrong on, JOHNSON CONTROLS, is another play on ford as well. That continues to keep moving higher. …”
Power Lunch Takes on Topic of Shorting as well as Discussion of JCI
Short selling and Johnson Controls, Incorporated were part of the discussion on Power Lunch, and investors both long and short will be interested in their discussion.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Johnson Controls, Incorporated has been talked about more than normal recently. At Ockham, we are not advising buying Johnson Controls, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Johnson Controls, Incorporated will beat the market in the foreseeable future.
“… no, i'm positive on ford and I think one of the trades i've actually been wrong on would be JOHNSON CONTROLS. That's the way to play I think the ford story and the recovery ... …”
What are the Experts Saying? Analysts and JCI on Closing Bell
Wall Street analysts can have a huge affect on stocks, and today Closing Bell talked about an analysts' opinion in relation to JCI.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; JCI has received less coverage from the financial media in business television and blogs.
“… JOHNSON CONTROLS getting a price target boost by two wall street firms. Raising its estimate to $30 from $29. Both firms citing JOHNSON CONTROLS optimistic full-year profit ... …”
More News Than Normal on JCI from Power Lunch
We are observing a lot of attention being paid to JCI in the news, so if you hold the stock you may want to take a look at what is going on.
The Motley Fool CAPS data suggests that investors believe Johnson Controls, Incorporated will beat the market in the foreseeable future. At Ockham, we are not advising buying Johnson Controls, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Johnson Controls, Incorporated has been talked about more than normal recently.
“… Now way better than expected earnings from JOHNSON CONTROLS. How much better? Beat the street by 14 cents. Jci beat the street due to the recovery in auto production. …”
Johnson Controls, Incorporated News Appeared on Power Lunch
As always, the latest news on JCI is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Johnson Controls, Incorporated has been talked about more than normal recently. At Ockham, we are not advising buying Johnson Controls, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Johnson Controls, Incorporated will beat the market in the foreseeable future.
“… JOHNSON CONTROLS, record-high profits in the first kel first quarter, dow jones auto index, quite a run-up as you can see from the one-year chart. …”
Heard on Squawk On The Street: CEO of JCI Discussed
Ockham is always interested to know what the Chief Executive is doing for their company, and we noticed a mention of JCI's CEO on Squawk On The Street.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The latest news on JCI has created quite a stir as the stock is trading $2.11 higher in today's session. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of JCI, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… Thank you very much. >> the chairman and ceo of JOHNSON CONTROLS. Certainly came through the storm in fine shape didn't they? …”
A Discussion of JCI's CEO Occurred on Squawk On The Street
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about JCI management on Squawk On The Street.
In comparison to the other stocks that we follow, Johnson Controls, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on JCI because the price has gotten too high to be justified by the fundamentals. Take notice of the news on this stock because it is up $2.14 since the close of trading yesterday.
“… Auto parts and building systems maker JOHNSON CONTROLS reporting first quarter earnings this morning. They were much better than expected. …”
The Opening Bell on Fox Business Brings News Related to Johnson Controls, Incorporated
Johnson Controls, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. The latest news on JCI has created quite a stir as the stock is trading $1.76 higher in today's session. Ranking all stocks in terms of news coverage offers some interesting data. In the case of JCI, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… And jci to keep an eye on, JOHNSON CONTROLS, this is a fantastic company. 43 cents, the street was looking for 29 cents, strong in their automotive product division, by the way, ... …”