NEW YORK (TheStreet) -- Shares of Johnson Controls Inc. (JCI - Get Report) are up 1.66% to $51.57 as shares could reportedly rise 20% within the next 12 to 18 months, partly thanks to its joint venture with SAIC Motor, China's state-owned car maker, Barron's reports.
Johnson CEO Alex Molinaroli has also increased the company's dividend by 16% and begun a $3 billion share buyback program, the paper said.
Separately, TheStreet Ratings team rates JOHNSON CONTROLS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOHNSON CONTROLS INC (JCI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JCI's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 59.1% when compared to the same quarter one year prior, rising from $164.00 million to $261.00 million.
- Net operating cash flow has significantly increased by 237.32% to $732.00 million when compared to the same quarter last year. In addition, JOHNSON CONTROLS INC has also vastly surpassed the industry average cash flow growth rate of 33.54%.
- Powered by its strong earnings growth of 190.90% and other important driving factors, this stock has surged by 39.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- JOHNSON CONTROLS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JOHNSON CONTROLS INC reported lower earnings of $1.70 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $1.70).
- You can view the full analysis from the report here: JCI Ratings Report