Johnson Controls

Methodology

Johnson Controls' building automation and HVAC equipment business generates moderately cyclical earnings tied to commercial construction activity and retrofit demand. The company's recurring service contracts and installed base provide some stability. This calculation works reasonably well when normalizing for construction cycles, with the services business creating more predictable earnings than new equipment sales.

Methodology

Johnson Controls typically shows moderate PEG ratios reflecting steady growth from building automation digitalization and energy efficiency upgrades. The company's smart building technology and sustainability focus support consistent positioning. Compare to other building products companies to assess whether JCI's service mix and automation capabilities justify valuations relative to traditional HVAC manufacturers.

Methodology

Johnson Controls pays a modest dividend as management balances capital returns with investments in smart building technology and strategic acquisitions. The company generates steady cash flows from the installed base of building systems. PEGY provides additional context, though the primary value drivers remain margin expansion from services and growth in building automation software.