Johnson Controls International plc (NYSE:JCI)

Price to Earnings (P/E) Ratio

The price to earnings ratio demonstrates significant volatility over the examined period. Starting at 14.25 in 2018, it dropped sharply to 5.74 in 2019, indicating a potential increase in earnings or a decrease in stock price. However, the ratio surged to 52.04 in 2020, suggesting a period of very low earnings or heightened market valuation. Following this peak, the ratio gradually decreased through 2021 and 2022, reaching 19.92 by 2023, which indicates some stabilization but remains higher than the early years.

Price to Operating Profit (P/OP) Ratio

This ratio shows a fluctuating trend with notable spikes and declines. In 2018, the ratio was relatively low at 9.92, escalating sharply to 26.83 in 2019 and peaking at 34.1 in 2020. It then decreased to 21.56 in 2021 before rising again to 27.19 in 2022 and falling to 21.34 in 2023. These variations imply instability in either operating profits or share price relative to operating profit during the period.

Price to Sales (P/S) Ratio

The price to sales ratio generally increased from 0.98 in 2018 to a high of 2.33 in 2021, representing an increase in market valuation relative to sales. However, after 2021, the ratio declined to 1.8 in 2022 and further dropped to 1.37 in 2023, approaching its levels from earlier years. This pattern may reflect market adjustments or changes in sales performance.

Price to Book Value (P/BV) Ratio

The price to book value ratio exhibits a rising trend from 1.46 in 2018 to a peak of 3.14 in 2021, indicating growing market valuation relative to book value over these years. Subsequently, the ratio decreased to 2.8 in 2022 and further to 2.23 in 2023, suggesting a moderation in market valuation or an increase in book value during these later periods.

Share Price Trends

The share price demonstrated a general upward trajectory from 2018 through 2021, increasing from $33.34 to a peak of $78.33. This represented more than a twofold increase within three years. However, after 2021, the share price experienced a decline, falling to $66.40 in 2022 and further to $54.10 in 2023, indicating a reduction in market valuation over the last two years.

Earnings per Share (EPS) Movements

Earnings per share showed considerable volatility during the period. Beginning at $2.34 in 2018, EPS increased substantially to $7.36 in 2019, suggesting strong profitability growth. Yet, in 2020 there was a sharp decline to $0.87, possibly reflecting adverse operational or market conditions. EPS partially recovered to $2.32 in 2021 and remained relatively stable through 2022 at $2.23, followed by a modest increase to $2.72 in 2023. Overall, EPS levels in the latter years remained considerably below the 2019 peak.

Price to Earnings (P/E) Ratio Dynamics

The P/E ratio exhibited significant fluctuation consistent with changes in share price and EPS. From 2018 to 2019, the ratio decreased markedly from 14.25 to 5.74, reflecting a substantial increase in earnings relative to share price. In 2020, it escalated sharply to 52.04, likely due to the combination of a high share price relative to a very low EPS. The ratio declined gradually thereafter, moving to 33.7 in 2021, then to 29.76 in 2022, and further down to 19.92 in 2023, indicating a trend towards valuation normalization as earnings improved and share price adjusted downward.

The analysis of the financial data over the six-year period reveals several notable trends concerning share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price

The share price demonstrated an overall upward trajectory from 2018 to 2021, rising from $33.34 to a peak of $78.33. However, after this peak, there was a noticeable decline during the next two years, falling to $66.40 in 2022 and further to $54.10 in 2023. This pattern indicates initial strong market performance followed by a period of correction or decreased investor confidence.

Operating Profit Per Share

The operating profit per share showed volatility within this time frame. It started at $3.36 in 2018 but sharply decreased in the following years to a low of $1.33 in 2020. Subsequently, it rebounded to $3.63 in 2021 before experiencing a decline again to $2.44 in 2022. A slight increase occurred again in 2023 to $2.54. This fluctuation suggests some instability or challenges in maintaining profitability per share consistently over these years.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio exhibits considerable variation, reflecting the interplay between share price valuation and operating profits. Starting at 9.92 in 2018, the ratio increased sharply to 34.1 by 2020, indicating that the share price was rising faster than operating profits, or operating profits were diminishing relative to price. Following this peak, the ratio decreased to 21.56 in 2021, suggesting an alignment closer to earnings, then rose again to 27.19 in 2022, and finally decreased to 21.34 in 2023. These movements suggest fluctuating market enthusiasm and changing profitability expectations.

In summary, the data indicates strong share price growth until 2021 with a subsequent decrease, while operating profit per share has been unstable, impacting valuation ratios. The P/OP ratio’s fluctuations correspond with these changes, reflecting variable market valuations relative to operating profitability over the period analyzed.

The financial data reveals several noteworthy trends over the six-year period ending in 2023. First, the share price experienced a general upward trajectory between 2018 and 2021, more than doubling from $33.34 to a peak of $78.33. However, this was followed by a decline over the subsequent two years, dropping to $54.10 in 2023.

Sales per share exhibited a different pattern. Starting at $33.98 in 2018, sales per share fell slightly over the next two years to values near $30.83 in 2020. From 2021 onwards, however, sales per share increased steadily, reaching $39.36 by 2023. This upward trend in sales per share in the latter years contrasts with the falling share price during the same period.

The Price-to-Sales (P/S) ratio mirrored changes in share price to some extent. Initially low at 0.98 in 2018, the P/S ratio rose substantially between 2018 and 2021, peaking at 2.33. This increase reflects a period in which the market valued the company more highly relative to its sales. Following 2021, the P/S ratio has declined to 1.37 by 2023, indicating a reversion towards lower market valuation relative to sales.

Summary of Trends

Share price growth from 2018 to 2021, followed by decline through 2023.

Sales per share decline until 2020, then consistent gain through 2023.

Price-to-Sales ratio increase until 2021, then decrease, indicating changing market sentiment relative to sales performance.

Overall, the data suggests a period of strong market optimism culminating in 2021, which has tempered in subsequent years despite improving sales per share. This divergence may imply expectations of slower growth or increased risk affecting valuation beyond sales performance alone.

The financial data reveals several noteworthy trends over the six-year period from 2018 to 2023.

Share Price

The share price demonstrates a general upward movement from 2018 through 2021, increasing from $33.34 to a peak of $78.33. This represents more than a doubling of value within three years. However, after reaching this high point in 2021, the share price declined over the subsequent two years, falling to $66.40 in 2022 and further down to $54.10 in 2023. Despite this decline, the 2023 price remains above the initial values observed in 2018–2020.

Book Value per Share (BVPS)

The book value per share exhibits relatively stable behavior, with minimal fluctuation around the mid-20 US dollar range. It increases from $22.90 in 2018 to $25.62 in 2019, followed by a slight decrease to $24.10 in 2020. The figure then fluctuates modestly in subsequent years, ending at $24.31 in 2023. Overall, the BVPS maintains a consistent level without any significant upward or downward trend.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio shows an increasing trend from 2018 (1.46) to 2021 (3.14), indicating that the market valuation of the company grew disproportionately relative to its book value during this period. This suggests increased investor optimism or improved market perceptions of the company's future prospects. After peaking in 2021, the ratio declines to 2.80 in 2022 and further to 2.23 in 2023. This reduction in the P/BV ratio corresponds with the share price decline while the book value remains stable, reflecting a partial correction in market valuation.

In summary, the data illustrates a period of substantial share price appreciation and rising market valuation relative to book value up to 2021, followed by a noticeable correction over the last two years. The steadiness in book value per share implies that changes in market sentiment largely drove the fluctuations in share price and valuation ratios. This pattern may be indicative of market dynamics reacting to external factors or company-specific developments influencing investor perception beyond fundamental book value changes.