JCI plc (JCI): Market Cap to Revenue Ratio
Johnson Controls relies on local dealers for installation, although the assembly of automation is centralized. Stable demand for energy efficiency creates a steady cash flow. The historical P/S reflects the dynamics of the market value of sales, where 3.40 represents the latest metric reading. The company's revenues are moderately cyclical, as they depend on commercial construction rates and the summer peak in HVAC demand.
Analytical breakdowns for Johnson Controls Inc. (JCI)
To identify the fundamental leaders of the sector, the analyst compares market capitalization with sales volume to determine the cost of one dollar of the asset's revenue. The diversification of Johnson Controls (JCI) into security systems and service contracts smooths out construction cyclicality; therefore, fluctuations in the P/S multiple allow for an assessment of the business's resilience to devaluation shocks and help define the boundaries of the company's fair value.
