JCINEUTRAL

Return on Equity (ROE)

13.4%

Updated 200h ago

Sector Performance

48th percentile

JCI

13.4%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

The Return on Equity (ROE) of 13.4% means JCI earned $0.134 for every dollar of shareholders’ equity over the past year — a measure of how efficiently the company uses investor capital to generate profit.

This sits just below the sector median of 13.8%, placing JCI in the 48th percentile among its peers, meaning roughly half the sector has a higher ROE. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 47.5%, with historical values dropping from 25.5% to 13.4%. The combination of an ROE near the sector median with a sharp quarterly decline suggests the company may be facing a temporary setback or a shift in profitability that warrants caution. This metric does not contradict the overall NEUTRAL verdict — the level is average, but the negative trend introduces uncertainty, supporting a balanced view without clear upside or downside conviction.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about JCI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are JCI's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.