Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Johnson Controls (JCI): Restructuring and Data Center Tailwinds Sharpen Core Focus – What’s the Impact, Outlook & Key Catalysts?
Johnson Controls (NYSE: JCI) delivered a strong Q4 FY24, highlighted by 10% organic revenue growth and adjusted EPS of $1.28, exceeding estimates by $0.03, while revenue of $7.39 billion beat forecasts by $72.21 million. Margin improvements were evident, with segment EBITA margin expanding 260 basis points to 18.6%, supported by structural efficiencies and a record $13.1 billion backlog (+7% YoY). Global Products led with a 28% EBITA margin (+700 basis points), while Building Solutions grew organically by 11%, driven by double-digit growth in Systems and Service sales. Data centers, now 10% of revenue, offer sustained double-digit growth potential, enhancing JCI’s leadership in energy-efficient solutions. Strategic advancements, including OpenBlue AI enhancements, strengthen sustainability and operational capabilities, driving up to 30% energy savings. FY25 guidance projects mid-single-digit organic revenue growth, 50+ basis points margin expansion, and adjusted EPS growth of 6%-9%, while a restructuring plan aims to unlock $500 million in annual savings. Despite execution risks in backlog conversion and restructuring, the divestiture of residential HVAC sharpens focus on higher-margin commercial markets, positioning JCI for long-term growth. How effectively can Johnson Controls leverage its restructuring efforts and data center leadership to drive sustained growth while mitigating transitional risks?
