Johnson Controls International PLC

Overview Key strengths Key risks Broad array of heating, ventilation, and air conditioning (HVAC) equipment controls, fire detection and suppression, and security systems. Industrial customers that operate in cyclical industries and can periodically delay project-related spending. Strong geographic diversity with a footprint spanning more than 150 countries.Sustainability-focused innovation translating into profitable growth.Strong balance sheet, creating financial flexibility.Strong commercial and industrial brands. Some concentration pertaining to the direct sales channel in lieu of distributors.Uncertainty regarding how climate-related legislation will be applied in its global markets.Higher raw material prices, scarcity of some electronic components, and high logistics costs could create margin pressure. Over the last four fiscal years, JCI has converted approximately 90% of operating income into free cash (64% excluding 2020

...Historically weak cash flows in 2022 will provide limited buffer after shareholder returns and acquisitions as Johnson Controls International PLC's (JCI) faces a weak economic environment. Over the last four fiscal years, JCI has converted approximately 90% of operating income into free cash (64% excluding 2020 when conversion was 171%), providing ample capital to deploy toward acquisitions and shareholder returns. The company has maintained negative discretionary cash flow over the last two years,...

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