Latest Ratios: P/E Ratio 55.3x · EV/EBITDA 26.8x · ROE 21.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $88.1B | $71.9B | $52.5B | $36.1B | $33.4B | $49.1B | $30.8B | $38.4B | $23.8B | $27.4B | $28.3B |
| Enterprise Value | $98.9B | $82.7B | $61.4B | $44.1B | $40.3B | $55.5B | $36.7B | $42.8B | $34.5B | $40.6B | $40.4B |
| P/E Ratio → | 55.27 | 41.81 | 30.80 | 19.78 | 22.47 | 29.99 | 48.63 | 80.95 | 15.09 | 23.56 | — |
| P/S Ratio | 3.73 | 3.05 | 2.29 | 1.62 | 1.62 | 2.07 | 1.38 | 1.60 | 1.02 | 0.91 | 1.36 |
| P/B Ratio | 7.34 | 5.55 | 3.02 | 2.04 | 1.92 | 2.62 | 1.66 | 1.84 | 1.06 | 1.27 | 1.12 |
| P/FCF | 91.24 | 74.53 | 32.71 | 20.35 | 22.24 | 25.37 | 17.33 | 62.29 | 12.70 | — | 42.90 |
| P/OCF | 62.94 | 51.41 | 25.01 | 16.27 | 16.79 | 19.74 | 13.87 | 31.92 | 9.45 | 273.57 | 14.82 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.51 | 2.67 | 1.98 | 1.96 | 2.34 | 1.64 | 1.78 | 1.47 | 1.35 | 1.94 |
| EV / EBITDA | 26.77 | 22.40 | 18.95 | 13.87 | 14.79 | 15.36 | 14.23 | 18.86 | 12.55 | 9.35 | 16.64 |
| EV / EBIT | 34.96 | 36.16 | 30.92 | 32.49 | 30.27 | 18.30 | 29.18 | 31.47 | 17.02 | 13.13 | 29.15 |
| EV / FCF | — | 85.73 | 38.25 | 24.86 | 26.85 | 28.68 | 20.64 | 69.43 | 18.44 | — | 61.27 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.4% | 36.4% | 35.2% | 35.0% | 34.4% | 34.0% | 33.2% | 32.1% | 32.8% | 30.8% | 27.2% |
| Operating Margin | 12.0% | 12.0% | 10.5% | 10.9% | 9.7% | 11.7% | 7.9% | 6.0% | 8.2% | 10.4% | 7.1% |
| Net Profit Margin | 13.9% | 13.9% | 7.4% | 8.3% | 7.4% | 6.9% | 2.8% | 2.0% | 9.2% | 5.3% | -4.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.7% | 21.7% | 9.7% | 10.5% | 8.5% | 8.8% | 3.2% | 2.2% | 9.8% | 6.9% | -4.8% |
| ROA | 8.2% | 8.2% | 4.0% | 4.4% | 3.6% | 4.0% | 1.5% | 1.0% | 4.3% | 2.8% | -1.9% |
| ROIC | 8.5% | 8.5% | 7.0% | 7.3% | 6.1% | 8.4% | 5.3% | 3.7% | 4.2% | 6.5% | 4.1% |
| ROCE | 9.8% | 9.8% | 7.8% | 7.9% | 6.3% | 8.5% | 5.3% | 4.1% | 5.0% | 7.3% | 4.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 0.55 | 0.50 | 0.51 | 0.41 | 0.42 | 0.35 | 0.49 | 0.63 | 0.50 |
| Debt / EBITDA | 3.03 | 3.03 | 2.93 | 2.77 | 3.28 | 2.14 | 3.04 | 3.18 | 3.98 | 3.13 | 5.26 |
| Net Debt / Equity | — | 0.83 | 0.51 | 0.45 | 0.40 | 0.34 | 0.32 | 0.21 | 0.48 | 0.61 | 0.48 |
| Net Debt / EBITDA | 2.93 | 2.93 | 2.75 | 2.51 | 2.54 | 1.77 | 2.28 | 1.94 | 3.91 | 3.05 | 4.99 |
| Debt / FCF | — | 11.20 | 5.54 | 4.50 | 4.61 | 3.31 | 3.30 | 7.14 | 5.74 | — | 18.36 |
| Interest Coverage | 14.57 | 14.57 | 4.29 | 5.54 | 3.96 | 7.25 | 3.56 | 4.49 | 4.21 | 5.79 | 4.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.93 | 0.93 | 0.94 | 0.97 | 1.04 | 1.10 | 1.22 | 1.37 | 1.05 | 1.04 | 1.05 |
| Quick Ratio | 0.76 | 0.76 | 0.79 | 0.80 | 0.80 | 0.87 | 1.00 | 1.17 | 0.89 | 0.77 | 0.87 |
| Cash Ratio | 0.03 | 0.03 | 0.05 | 0.07 | 0.18 | 0.15 | 0.24 | 0.31 | 0.02 | 0.03 | 0.04 |
| Asset Turnover | — | 0.62 | 0.54 | 0.53 | 0.49 | 0.57 | 0.55 | 0.57 | 0.48 | 0.58 | 0.33 |
| Inventory Turnover | 8.24 | 8.24 | 8.38 | 7.75 | 5.08 | 7.59 | 8.40 | 8.97 | 8.64 | 6.50 | 5.25 |
| Days Sales Outstanding | — | 96.97 | 96.23 | 89.80 | 101.29 | 86.56 | 86.58 | 87.87 | 87.69 | 80.64 | 112.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.4% | 1.9% | 2.7% | 2.7% | 1.6% | 2.6% | 2.4% | 4.0% | 2.6% | 3.2% |
| Payout Ratio | 29.7% | 29.7% | 58.7% | 53.0% | 59.8% | 46.5% | 125.2% | 194.1% | 44.1% | 43.6% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 2.4% | 3.2% | 5.1% | 4.4% | 3.3% | 2.1% | 1.2% | 6.6% | 4.2% | — |
| FCF Yield | 1.1% | 1.3% | 3.1% | 4.9% | 4.5% | 3.9% | 5.8% | 1.6% | 7.9% | — | 2.3% |
| Buyback Yield | 6.8% | 8.3% | 2.4% | 1.7% | 4.3% | 2.7% | 7.2% | 15.6% | 1.3% | 2.4% | 1.8% |
| Total Shareholder Yield | 7.8% | 9.7% | 4.3% | 4.4% | 7.1% | 4.2% | 9.7% | 18.0% | 5.3% | 4.9% | 5.0% |
| Shares Outstanding | — | $654M | $676M | $679M | $679M | $721M | $754M | $874M | $679M | $679M | $679M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying JCI stock.
Johnson Controls International plc's current P/E ratio is 55.3x. The historical average is 20.7x. This places it at the 96th percentile of its historical range.
Johnson Controls International plc's current EV/EBITDA is 26.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Johnson Controls International plc's return on equity (ROE) is 21.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 12.0%.
Based on historical data, Johnson Controls International plc is trading at a P/E of 55.3x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Johnson Controls International plc's current dividend yield is 1.03% with a payout ratio of 29.7%.
Johnson Controls International plc has 36.4% gross margin and 12.0% operating margin. Operating margin between 10-20% is typical for established companies.
Johnson Controls International plc's Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
EPS miss vs raised guidance
Metrics are mathematically derived from official filings.
Premium Multiple Hinges on Margin Trajectory
JCI trades at 54.4x trailing earnings and 26.4x EV/EBITDA, a premium to peers like HON (14.7x P/E) and CARR (35.4x P/E), implying expectations of sustained margin expansion.
The forward P/E of 28.5x suggests the market is pricing in a return to mid-teens operating margins, a level achieved in 2026Q3 (14.9%) but not consistently sustained. The PEG of 2.12 indicates that the growth rate implied by the multiple is modest relative to the premium, leaving little room for disappointment. Given the recent EPS miss, the valuation appears vulnerable to multiple compression if margin expansion stalls.
Margin Expansion Masks Earnings Quality Concerns
Gross margin improved to 37.4% in 2026Q3 from 34.4% in 2024Q2, a 300bp gain, but net margin of 11.3% is below operating margin of 14.9%, suggesting non-operating drags.
The operating margin expansion is driven by SG&A discipline, with SG&A/revenue falling from 37.5% to 21.2% over the same period. However, the net margin being lower than operating margin indicates persistent interest costs or other deductions, which may not be fully offset by tax benefits. The 2025Q4 net margin spike to 26.3% was likely due to one-off gains, as the prior cash flow analysis noted, so investors should focus on operating margin as the cleaner measure of earning power.
ROIC Recovery Still Below Cost of Capital
ROIC improved from -0.4% in 2024Q2 to 3.3% in 2026Q3, but remains below the cost of capital, indicating value creation is still nascent.
The recovery in ROIC is driven by margin expansion rather than asset efficiency, as asset turnover has remained flat around 0.15-0.17. ROE has also improved from negative to 5.5% in 2026Q3, but this is partly due to a shrinking equity base from buybacks. The company is still not generating returns that clearly exceed its cost of capital, which may justify the historical discount to peers like TT (ROIC 26.2%) and ETN (13.6%).
Working Capital Efficiency Improves but Remains Stretched
Cash conversion cycle shortened to 53 days in 2026Q3 from 79 days in 2024Q2, driven by faster collections (DSO down to 93 from 104) and lower inventory days.
The improvement in DSO and DIO suggests better project management and inventory control, but the current ratio of 0.97 indicates that current liabilities exceed current assets, a sign of tight liquidity. The CCC improvement is partly due to extended payables (DPO up to 83 from 99), which may strain supplier relationships. The working capital swings noted in the cash flow analysis highlight that these metrics are volatile and may not reflect a structural improvement.
Leverage Creeps Higher as Equity Shrinks
Debt-to-equity rose to 0.70 in 2026Q3 from 0.55 in 2024Q4, while D/EBITDA improved to 9.59 from 146.89, indicating debt levels are stable but equity is eroding.
The dramatic improvement in D/EBITDA from 2024Q2 is due to a normalization of EBITDA, not a reduction in debt. Total debt has remained near $9.5B, but equity has fallen from $15.7B to $13.5B, driven by buybacks and dividends. Interest coverage of 13.9x in 2026Q3 is comfortable, but the trend of rising leverage relative to equity warrants monitoring, especially if cash flow becomes strained.
Liquidity Tightens Below the 1.0 Threshold
Current ratio fell to 0.97 in 2026Q3, with quick ratio at 0.80, indicating that current liabilities exceed liquid assets, a potential stress point if cash flow falters.
The current ratio has been below 1.0 in several quarters, suggesting a reliance on operating cash flow to meet short-term obligations. Cash of $641M is modest relative to the $9.5B debt load, but the service business generates steady cash flow. The negative FCF in 2025Q4 (-8.9% margin) shows that liquidity can tighten quickly, so the company's ability to maintain access to credit markets is critical.
Valuation Premium vs. Operational Discount
JCI's P/E of 54.4x is far above HON (14.7x) and CARR (35.4x), yet its ROIC of 3.3% lags TT (26.2%) and ETN (13.6%), suggesting the market is pricing in future improvements.
The premium valuation appears inconsistent with current returns, but may reflect expectations of margin expansion and the defensive growth of the service business. JCI's net margin of 11.3% is comparable to peers, but its ROE of 5.5% is well below HON (41.2%) and TT (34.5%), indicating lower financial leverage or efficiency. The gap in ROIC is structural, as JCI's asset base is heavier with goodwill, but if the company can execute on its digital strategy, the multiple may be justified.
P/E Misleads on Cyclicality and One-Offs
The trailing P/E of 54.4x is distorted by the 2024Q2 loss and 2025Q4 one-off gains, making forward P/E of 28.5x a more reliable gauge of ongoing earnings power.
The most commonly misapplied ratio for JCI is the trailing P/E, as it is heavily influenced by non-recurring items and the cyclical trough in 2024Q2. Investors should instead use EV/EBITDA or forward P/E, adjusting for restructuring charges and divestiture gains. The forward EV/EBITDA of 31.2x is still rich, but it better reflects the normalized earnings potential. Additionally, given the high goodwill balance, investors should monitor ROIC excluding goodwill to assess the underlying operational performance.