Johnson Controls Trades Near Two-Year Highs, But Growth Scores Say the Easy Gains May Be Behind It

This Johnson Controls International stock analysis finds shares at $143.05, close to their two-year high of $153.64 and firmly in the upper end of that range. StreetBriefs’ model rates Johnson Controls a Hold, reflecting solid operating quality set against a growth pillar that’s still working through a multi-year revenue slump and a valuation that already prices in some of the recent momentum.

What Is Happening With the Stock Price

At $143.05, Johnson Controls sits in the upper end of its two-year range between $67.84 and $153.64 – a substantial recovery from the lower end of that band. The stock’s proximity to its two-year high points to improved investor sentiment, though it also means less room for the shares to run on valuation re-rating alone from here.

Quality: Is This a Financially Sound Business?

Quality scores 60 out of 100. Johnson Controls converts revenue reasonably well, with a gross margin of 36.6%, operating margin of 15.9%, and net profit margin of 14.3%, alongside a return on equity of 14.3% and return on assets of 5.4%. Free cash flow of $3.0B on revenue of $25.0B – a roughly 12% FCF-to-revenue conversion – is solid, backing a 3.4% FCF yield. The balance sheet is more middling: debt-to-equity of 0.70 is moderate leverage, and a quick ratio of 0.68 (versus a current ratio of 1.00) shows the company leans on inventory rather than pure liquid assets to cover near-term obligations.

Growth: Does This Company Have Real Upside?

Growth is the weakest of the three pillars in this Johnson Controls International stock analysis, scoring just 37 out of 100. Trailing-twelve-month revenue growth of 9.3% marks a real improvement, but the five-year revenue CAGR is actually negative at -2.3%, meaning the business is still working to overcome a longer stretch of stagnant or declining top-line performance. Earnings growth of 15.3% over the trailing twelve months is a more encouraging signal, suggesting margin execution has outpaced the still-recovering revenue trend.

Opportunity: Is Now a Good Time to Enter?

Opportunity scores just 28 out of 100. A P/E ratio of 40.30 is elevated for an industrials name whose five-year revenue growth has been negative, and EV/EBITDA of 22.09 and Price/Book of 6.43 tell a similar story of a valuation that has already priced in a good deal of optimism about the recovery continuing. With the stock trading in the upper end of its two-year range rather than nearer its lows, and a modest 1.1% dividend yield against a 45.1% payout ratio, there’s limited valuation cushion if the growth recovery stalls.

Johnson Controls International Stock Analysis: The Bottom Line

StreetBriefs’ model rates Johnson Controls a Hold: solid margins and a healthy 60/100 Quality score are offset by a Growth pillar still recovering from a negative five-year revenue trend and an Opportunity score that flags the stock’s rich valuation near two-year highs. The bull case is a business whose recent 9.3% revenue growth and 15.3% earnings growth suggest the recovery has legs; the bear case is a 40.30 P/E that leaves little room for disappointment if that momentum fades. This Hold rating is StreetBriefs’ quantitative model output, a starting point for further research rather than personalized investment advice. Figures are based on Yahoo Finance data as of August 24, 2026, and may be delayed or contain errors.