Johnson Controls InternationalXTER:TYIA 69 Gross Margin % is 36.83% as of Mar. 2026, which is 10% above its 10-year median of 33.63. GuruFocus rates XTER:TYIA with a GF Score™ of 69/100 and a GF Value™ of €88.59 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,724 Construction companies, Johnson Controls International ranks better than 78.36% on this metric.
Johnson Controls International (XTER:TYIA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Johnson Controls International had a gross margin of 36.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Johnson Controls International Gross Margin % Related Terms
Johnson Controls International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Johnson Controls International Gross Margin % Chart
XTER:TYIA vs TT, CARR, MAIR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Johnson Controls International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Johnson Controls International Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Johnson Controls International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Johnson Controls International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Johnson Controls International (XTER:TYIA) has a Gross Margin % of 36.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Johnson Controls International and its competitors. This is 10% above median its historical median of 33.63. Over the past decade, Johnson Controls International's Gross Margin % has ranged from 27.13 to 36.56. According to the industry distribution chart, Johnson Controls International ranks #373 out of 1724 companies in the Construction industry, placing it in the top 21.6%.
Is Johnson Controls International's Gross Margin % too high?
Johnson Controls International's current Gross Margin % of 36.83% is 10% above median its 10-year median of 33.63. Over the past 10 years, this metric has ranged from a low of 27.13 to a high of 36.56. The Construction industry median Gross Margin % is 20.71. Johnson Controls International's value of 36.83% is 77.9% above this industry median. Based on the distribution chart, Johnson Controls International ranks #373 out of 1724 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Johnson Controls International has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Controls International's Gross Margin % compare to TT and CARR?
According to the Construction industry distribution chart, Johnson Controls International ranks #373 out of 1724 companies for Gross Margin %. This places Johnson Controls International in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Johnson Controls International's value of 36.83% is 77.9% above this benchmark. Historically, Johnson Controls International's own Gross Margin % has ranged from 27.13 to 36.56 over the past decade. While the company's 10-year median is 33.63 vs. the industry median of 20.71, Johnson Controls International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson Controls International's current Gross Margin % of 36.83% is 77.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Johnson Controls International and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson Controls International's current Gross Margin % is 36.83%, which is 10% above median its own 10-year median of 33.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Controls International stock overvalued right now?
Based on GuruFocus' analysis, Johnson Controls International (XTER:TYIA) is currently considered Significantly Overvalued. The stock's GF Value™ is €88.59, compared to a current price of €127.75 — trading 44.2% above its estimated fair value. The current Gross Margin % is 36.83%, which is 10% above median its 10-year median of 33.63 and 77.9% above the Construction industry median of 20.71. Johnson Controls International's overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Johnson Controls International (XTER:TYIA), the current Gross Margin % is 36.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson Controls International (XTER:TYIA) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Controls International stock appears to be overvalued.
The current stock price of €127.75 is trading 44.2% above its estimated GF Value™ of €88.59.
GuruFocus considers Johnson Controls International to be Significantly Overvalued.
Key valuation signals for XTER:TYIA:
Gross Margin %: 36.83% (10% above median its 10-year median of 33.63)
GF Value™: €88.59 vs. price of €127.75 (44.2% above fair value)
Industry Position: 77.9% above the Construction median (#373 of 1724)
No single metric tells the full story. See the XTER:TYIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Controls International Business Description
Following Johnson Controls' divestiture of its residential and light commercial HVAC businesses to Bosch in 2025, nearly all of its revenue comes from commercial HVAC (60%) and fire and security products and services (40%). A 2016 merger joined Johnson Controls' HVAC and Tyco's fire and security businesses with the premise that there is synergy in offering a broader variety of automation products and solutions to commercial buildings. We estimate Johnson Controls' pro forma revenue mix will be one-third products, one-third installation, and one-third services.
69GF Score
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