CluenexJohnson Controls JCI
Johnson Controls scores average on business quality (4.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Johnson Controls does
Johnson Controls provides building management systems, HVAC equipment, and security solutions, generating revenue primarily from commercial and industrial facility operators. The business is currently allocating capital toward massive share buybacks, totaling $5.9B recently to reshape its equity base.
- What it does best
Johnson Controls dominates commercial building HVAC integration, supported by an operating margin of 14.1% that outperforms peers like TT at 17.9% in sheer scale. This edge relies on massive installed equipment footprints that make rip-and-replace updates prohibitively expensive for facility managers.
- The main risk
Net debt sits at $9.5B against total debt of $9.8B, exposing the company to refinancing risks if cash flows fluctuate. Free cash flow dropped to $1.4B while buybacks surged to $5.9B, consuming far more cash than operations generated and tightening liquidity buffers.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin of 14.1% and net margin of 14.3% drive a robust 26.9% ROE, placing return on equity in the top quartile at the 68th percentile. Profitability remains stable, though scale benefits are currently offset by rising debt obligations.
Switching costs form its primary moat, locking in commercial building operators who rely on its proprietary HVAC and security systems. Its gross margin of 36.6% sits near the middle of its sector at the 49th percentile, reflecting standard competitive pressure.
Revenue ticked up to $25B, representing a 2.8% growth rate that reflects a deceleration compared to historical cyclical peaks. Growth sits in the bottom half of its sector at the 39th percentile, lagging peers.
Total debt of $9.8B and net debt of $9.5B weigh on the balance sheet, while interest coverage of 16.9x keeps debt costs manageable. Free cash flow dropped to $1.4B as buybacks drained liquidity, softening the financial profile overall.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $4.1M outside pre-planned sales.
Our sealed record on JCI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Johnson Controls scores average on the Cluenex quality check (4.9 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 2 sold $4.1M outside pre-planned sales.
Oct 27, 2026, after the close.
See JCI today
- Today's verdict on JCI, and why
- Fair value with cautious, base and optimistic cases
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- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Johnson Controls (JCI)”, https://cluenex.com/stocks/jci/, data as of Oct 10, 2026.