Johnson Controls Price To Sales vs. Current Valuation

JCI Stock  USD 80.27  1.92  2.45%   
Based on Johnson Controls' profitability indicators, Johnson Controls International is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Johnson Controls' ability to earn profits and add value for shareholders.

Johnson Controls Price To Sales Ratio

2.39

As of now, Johnson Controls' Price Sales Ratio is increasing as compared to previous years. As of now, Johnson Controls' Change To Netincome is decreasing as compared to previous years. The Johnson Controls' current Net Income Per Share is estimated to increase to 2.66, while Accumulated Other Comprehensive Income is forecasted to increase to (915.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.3519
Sufficiently Up
Slightly volatile
Operating Profit Margin0.110.1053
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.04080.0663
Way Down
Pretty Stable
For Johnson Controls profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Johnson Controls to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Johnson Controls International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Johnson Controls's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Johnson Controls International over time as well as its relative position and ranking within its peers.
  

Johnson Controls' Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Johnson Controls. If investors know Johnson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Johnson Controls listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.18
Dividend Share
1.48
Earnings Share
2.08
Revenue Per Share
34.064
Quarterly Revenue Growth
(0.1)
The market value of Johnson Controls Int is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Controls' value that differs from its market value or its book value, called intrinsic value, which is Johnson Controls' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Johnson Controls' market value can be influenced by many factors that don't directly affect Johnson Controls' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Johnson Controls' value and its price as these two are different measures arrived at by different means. Investors typically determine if Johnson Controls is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Controls' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Johnson Controls Int Current Valuation vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Johnson Controls's current stock value. Our valuation model uses many indicators to compare Johnson Controls value to that of its competitors to determine the firm's financial worth.
Johnson Controls International is rated third overall in price to sales category among its peers. It is considered the number one company in current valuation category among its peers reporting about  26,787,703,111  of Current Valuation per Price To Sales. As of now, Johnson Controls' Price To Sales Ratio is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Johnson Controls' earnings, one of the primary drivers of an investment's value.

Johnson Current Valuation vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Johnson Controls

P/S

 = 

MV Per Share

Revenue Per Share

 = 
2.32 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Johnson Controls

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
62.07 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Johnson Current Valuation vs Competition

Johnson Controls International is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 138.4 Billion. Johnson Controls totals roughly 62.07 Billion in current valuation claiming about 45% of equities under Industrials industry.

Johnson Controls Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Johnson Controls, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Johnson Controls will eventually generate negative long term returns. The profitability progress is the general direction of Johnson Controls' change in net profit over the period of time. It can combine multiple indicators of Johnson Controls, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-964 M-915.8 M
Operating Income2.4 B1.5 B
Income Before Tax1.5 B1.2 B
Total Other Income Expense Net-894 M-849.3 M
Net Income1.4 B883.4 M
Income Tax Expense111 M105.5 M
Net Income Applicable To Common Shares2.1 B1.4 B
Net Income From Continuing Ops1.4 B1.4 B
Non Operating Income Net Other282.9 M197.3 M
Interest Income17 M16.1 M
Net Interest Income-402 M-422.1 M
Change To Netincome206.1 M216.4 M
Net Income Per Share 2.53  2.66 
Income Quality 1.49  1.41 
Net Income Per E B T 1.12  1.18 

Johnson Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Johnson Controls. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Johnson Controls position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Johnson Controls' important profitability drivers and their relationship over time.

Use Johnson Controls in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Johnson Controls position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Johnson Controls will appreciate offsetting losses from the drop in the long position's value.

Johnson Controls Pair Trading

Johnson Controls International Pair Trading Analysis

The ability to find closely correlated positions to Johnson Controls could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Johnson Controls when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Johnson Controls - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Johnson Controls International to buy it.
The correlation of Johnson Controls is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Johnson Controls moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Johnson Controls Int moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Johnson Controls can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Johnson Controls position

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Automobiles and Trucks Theme
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When determining whether Johnson Controls Int offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Johnson Controls' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Johnson Controls International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Johnson Controls International Stock:
Check out Risk vs Return Analysis.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
To fully project Johnson Controls' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Johnson Controls Int at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents 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 can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Johnson Controls investors may work on 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.