Johnson Controls International PLC (JCI, Financial) has experienced a notable surge in its stock price, gaining 7.33% over the past week and an impressive 25.92% over the past three months. As of the latest data, the company boasts a market capitalization of $47.89 billion. Currently, the stock is fairly valued at a price of $71.09, closely aligned with its GF Value of $66.68. This valuation marks a shift from three months ago when it was considered modestly undervalued.
Overview of Johnson Controls International
Johnson Controls International PLC operates within the construction sector, specializing in a range of building solutions. These include HVAC systems, building management systems, industrial refrigeration, and fire and security solutions. With commercial HVAC making up over 45% of its sales, the company has a significant presence in its industry. In fiscal 2023, Johnson Controls reported nearly $27 billion in revenue, underscoring its substantial market footprint. 
Assessing Profitability
Johnson Controls holds a Profitability Rank of 7/10, indicating robust profitability within its sector. The company's Operating Margin stands at 7.52%, which is higher than 64.33% of its peers. Additionally, its Return on Equity (ROE) is 10.45%, Return on Assets (ROA) is 3.93%, and Return on Invested Capital (ROIC) is 7.12%, each surpassing the majority of competitors. Johnson Controls has maintained profitability for 9 out of the past 10 years, demonstrating consistent financial strength. 
Growth Metrics
The company's Growth Rank is also 7/10, reflecting strong growth metrics. Over the past three years, Johnson Controls has achieved a 9.60% revenue growth rate per share, better than 62.18% of its industry peers. Its EPS growth without NRI over the same period is an impressive 26.20%. Looking ahead, the projected EPS growth rate for the next three to five years is 11.51%, indicating potential for continued expansion. 
Major Shareholders
Dodge & Cox is the top holder with 11.87% of shares, followed by Ken Fisher (Trades, Portfolio) who holds 2.09%, and Charles Brandes (Trades, Portfolio) with a 0.09% stake. The significant investments by these major holders suggest strong institutional confidence in Johnson Controls' market strategy and future prospects.
Competitive Landscape
Johnson Controls operates in a competitive environment with key players like Carrier Global Corp (CARR, Financial) with a market cap of $59.59 billion, Builders FirstSource Inc (BLDR, Financial) at $20.55 billion, and Trane Technologies PLC (TT, Financial) at $75.29 billion. Despite the stiff competition, Johnson Controls maintains a competitive edge through its diversified product offerings and strategic market positioning.
Conclusion
Johnson Controls International PLC stands out in the construction and building solutions sector with strong profitability and growth metrics. The company's recent stock price rally is backed by solid financial performance and robust future growth projections. Coupled with significant institutional holder confidence, Johnson Controls is well-positioned for sustained growth and market share expansion, making it a noteworthy consideration for investors looking at the construction sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
