JCI · JOHNSON CONTROLS INTERNATION

Back to holdings

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company designs, manufactures, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and digital solutions. It also provides energy solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven building solutions.

Close · 3M

+0.22%

Held by 1 AI ETF

LQAI0.130%

as of Sep 2

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals4

Win rate50% (2/4)

Avg buy return-0.62%

LQAInow 0.130% of fund1 signal

LQAI · New entry · 1d

weight 0 → 0.150% (new)·stock up 10.2% in the 30 days before

Aug 6·entry $154.55·now $142.23Fresh

-7.97%

since Aug 6

PQUSno longer held2 signals

PQUS · Exit · 1d

weight 0.110% → 0 (exited)·stock up 1.3% in the 30 days before

Jul 31·entry $146.66·now $142.23

-3.02%

since Jul 31

PQUS · Weight decrease · 2d

weight 0.250% → 0.230% (-0.020 pp)·stock down 1.6% in the 30 days before

May 9·entry $141.78·now $142.23

+0.32%

since May 9

AIEQno longer held4 signals

AIEQ · Exit · 1d

weight 0.520% → 0 (exited)·stock up 8.1% in the 30 days before

Jul 1·entry $144.80·now $142.23

-1.77%

since Jul 1

AIEQ · Weight increase · 2d

weight 0.520% → 0.540% (+0.020 pp)·stock up 0.1% in the 30 days before

Jun 26·entry $138.40·now $142.23Drifting

+2.77%

since Jun 26

AIEQ · Weight increase · 2d

weight 0.480% → 0.530% (+0.050 pp)·stock up 1.8% in the 30 days before

Jun 4·entry $147.40·now $142.23Fresh

-3.51%

since Jun 4

AIEQ · New entry · 1d

weight 0 → 0.480% (new)·stock down 5.2% in the 30 days before

May 30·entry $133.91·now $142.23Drifting

+6.21%

since May 30

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 11

The AI ETF PQUS shows a recent trend of decreasing its weight in Johnson Controls, which aligns with the framework's 'Fail' verdict due to significant financial and valuation concerns. While QRFT holds a small position, the overall AI activity, particularly the reduction, suggests caution that resonates with the framework's findings.

Circle of CompetenceThe business of building technologies and energy solutions typically involves stable unit economics, allowing for reasonable projection of ten-year cash flows.
Economic MoatJohnson Controls benefits from established brand recognition, significant scale, and high switching costs once its critical systems are integrated into buildings.
ManagementThe provided financial data and high-level company information do not offer sufficient insight to assess management's candor, capital allocation discipline, or skin in the game.
Financial HealthThe extraordinarily high EV/EBITDA ratio of 90.74, coupled with negative revenue growth, indicates significant concerns regarding the company's debt manageability or operating profitability, failing the financial health criteria.
Margin of SafetyWith a PER of 25.07, PBR of 5.57, extremely high EV/EBITDA, and negative revenue growth, the current price offers no defensible margin of safety against a conservative estimate of intrinsic value.

Johnson Controls appears to operate within a predictable industry and possesses clear economic moats; however, its financial health raises significant red flags due to an exceptionally high EV/EBITDA and negative revenue growth. Coupled with elevated valuation multiples, there is no discernible margin of safety, leading to an overall 'Fail' verdict within this value-investing framework.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.