JCI

Johnson Controls Inc.

Industrial/Transportation


Presented:09/26/2013
Price:$42.93
Cap:$29.40B
Current Price:$76.60
Cap:$51.17B

Presented

Date09/26/2013
Price$42.93
Market Cap$29.40B
Ent Value$35.44B
P/E Ratio27.12x
Book Value$16.47
Div Yield2%
Shares O/S684.16M
Ave Daily Vol370,000
Short Int1.04%

Current

Price$76.60
Market Cap$51.17B
Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Its Building Efficiency segment designs, produces, markets, and installs integrated heating, ventilating, and air conditioning systems, as well as building management systems, controls, and security and mechanical equipment. This segment also provides technical services, energy management consulting, and operations of real estate portfolios for the non-residential buildings market. In addition, this segment offers residential air conditioning and heating systems, and industrial refrigeration products. The company’s Automotive Experience segment designs and manufactures interior products and systems for passenger cars and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles serving original equipment manufacturers. It offers seating systems and components; cockpit systems consisting of instrument panels and clusters, information displays, and body controllers; overhead systems, such as headliners and electronic convenience features; floor consoles; and door systems. Johnson Controls, Inc.’s Power Solutions segment produces lead-acid automotive batteries, as well as offers absorbent glass mat and lithium-ion battery technologies for hybrid and electric vehicles. It serves automotive original equipment manufacturers and the general vehicle battery aftermarket. The company was formerly known as Johnson Electric Service Company and changed its name to Johnson Controls, Inc. in 1974. Johnson Controls, Inc. was founded in 1885 and is headquartered in Milwaukee, Wisconsin.

Highlights

The presenter is long shares of Johnson Controls (JCI) and said the bullish case for the automotive supply, HVAC, and battery company is under-appreciated. He sees upside potential for shareholders if the market multiple (EV/ EBITDA) expands as JCI exits non-core businesses under the leadership of new CEO, Alex Molinaroli (a 30-year veteran of the company), and outlined his bullish thesis as follows:

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Idea Discussion

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