Aureus
FRed Flag

Johnson Controls International(JCI)

F

Financial data as of Sep 30, 2025Improving · Industrials

FCF Margin3.5%Free Cash Flow / Revenue
Cash Conversion42.5%Operating CF / Net Income
Free Cash Flow$965.0M
Revenue$23.6B
Net Cash-$9.5BNet debt position
Debt / FCF12.0xElevated debt burden
Current Ratio0.93Tight short-term liquidity
YoY FCF Growth+200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1High debt-to-FCF ratio (12.0x; 9.6x sector-adjusted)
→
-1Current ratio below 1.0 (0.93)
→
-0.5Below-average cash conversion rate (43%)
→
+1Strong YoY FCF growth (200.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.95)
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+200.0%)

Concerns

  • Low FCF margin (3.5%)
  • Weak cash conversion (43%)
  • Heavy debt position ($9.5B net debt, 12.0x FCF)
  • High debt-to-FCF ratio (12.0x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.1B stock-based compensation (15% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin3.5%
Net Margin13.9%
Operating CF Margin5.9%
CapEx Ratio1.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$9.5BNet debt position
Debt / FCF12.0xElevated debt burden
Current Ratio0.93Tight liquidity
Debt / Equity0.76Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameJohnson Controls International
SectorIndustrials
Free Cash Flow$965.0M
Revenue$23.6B
Net Income$3.3B
Operating Cash Flow$1.4B
Capital Expenditure$434.0M
FCF Margin3.5%
Cash Conversion Rate42.5%
Net Margin13.9%
Total Debt$9.9B
Total Cash$379.0M
Net Cash-$9.5B
Current Ratio0.93
Debt / Equity0.76
Debt / FCF12.0x
YoY FCF Growth+200.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateSep 30, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Industrials: 14 A-Grades, Three Complete Failures

Two-thirds of industrials earn A or B grades. Boeing, FedEx, and Johnson Controls sit at the bottom with F-grades.

May 22, 2026
VRSKUNPNSCODFL+11
Sector Report4 min read

Industrials: 13 A-Grades and Four Failures

Two-thirds of industrials earn A-grades while Boeing, FedEx, and 3M bleed cash. The sector split tells you everything.

Apr 20, 2026
VRSKUNPUBERNSC+12
Sector Report4 min read

Industrials: 14 A-Grades and Five Failures

Half the sector earns A-grades while Boeing burns cash. The spread tells you everything about where quality lives.

Mar 20, 2026
VRSKUNPUBERNSC+11