Johnson Matthey (JMAT) AI Stock Analysis

• Market Cap: £3.37B
• Dividend Yield: 3.83%
• Average Volume (3M): 360.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -4.60%
• EPS Growth: -126.46%
• Country: UK
• Employees: 11,685
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.51
• Shares Outstanding: 168,055,760
• 10 Day Avg. Volume: 376,510
• 30 Day Avg. Volume: 360,183
• PEG Ratio: 0.02
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 292.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,176.88
• Price Target Upside: 8.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 2,100.00p ▲(4.48% Upside)

Johnson Matthey's overall stock score reflects a mixed financial performance with significant operational improvements and strategic initiatives. While technical indicators and valuation metrics present challenges, positive earnings call sentiment and corporate events provide a more optimistic outlook.

Positive Factors

Operating Performance

A 38% increase in operating performance reflects strong business execution and efficiency, indicating robust market demand and effective cost management.

Cash Flow Improvement

Improved cash flow suggests a successful shift to a cash-focused model, enhancing financial stability and enabling reinvestment in growth opportunities.

Margin Improvement

Margin improvement in Clean Air indicates enhanced profitability and operational efficiency, supporting sustainable long-term growth.

Negative Factors

Net Debt Increase

Rising net debt can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in future growth.

Revenue Decline

Declining revenue highlights challenges in maintaining market share and demand, which could affect future profitability and growth.

Delay in PGM Refinery

Delays in the PGM refinery could hinder operational efficiency and revenue generation, affecting long-term strategic goals.

Johnson Matthey Business Overview & Revenue Model

Company Description

Johnson Matthey Plc engages in the clean air, catalyst and hydrogen technology, and platinum group metals (PGM) service businesses in the United Kingdom, Germany, rest of Europe, the United States, rest of North America, China and Hong Kong, rest of Asia, and internationally. It operates through three segments: Clean Air, Efficient Natural Resources, and Other Markets. The Clean Air segment provides catalysts for emission control after-treatment systems to remove harmful emissions from vehicles, as well as cars, other light duty vehicles, trucks, buses, and non-road equipment powered by diesel and gasoline. The Efficient Natural Resources segment provides products and processing services for the use and transformation of critical natural resources including oil, gas, biomass, and platinum group metals; and circular economy solutions. This segment also offers specialty catalysts and additives; process technology and engineering design licenses; platinum group metal refining and recycling services, and chemical and industrial products; and other precious metal services. The Other Markets segment business portfolio includes precious metal pastes and enamels, battery systems, fuel cell technologies, battery materials, and green hydrogen; science and technology to develop the products for devices used in medical procedures; and detection, diagnostic, and measurement solutions. The company was formerly known as Johnson & Cock and changed its name to Johnson Matthey Plc in 1851. Johnson Matthey Plc was founded in 1817 and is based in London, the United Kingdom.

How the Company Makes Money

Johnson Matthey generates revenue through several key streams. The largest portion comes from its Catalysis segment, which produces catalysts used in automotive and industrial applications, particularly in reducing emissions and enhancing fuel efficiency. The company also earns significant income from its Battery Materials division, which supplies advanced materials for electric vehicle batteries, capitalizing on the growing demand for sustainable transport solutions. Additionally, Johnson Matthey's Precious Metals segment contributes to its earnings through the sale of precious metals, recycling services, and refining operations. Strategic partnerships with automotive manufacturers and technology companies further bolster its revenue, as these collaborations often lead to long-term contracts and joint ventures that align with market trends towards sustainability and innovation.

Johnson Matthey Financial Statement Overview

Summary

Johnson Matthey shows a mixed financial performance. Improved profitability and leverage ratios in 2025 indicate better operational efficiency and financial stability. However, challenges with declining revenues, lower EBITDA margins, and weakened cash flow generation remain.

Income Statement

Johnson Matthey shows a mixed performance in its income statement. The company has experienced fluctuating revenue levels, with a notable decline in revenue from 2024 to 2025. Gross profit margin remains relatively stable, but the net profit margin has improved significantly in 2025 due to a higher net income. The EBIT margin increased in 2025, suggesting better operational efficiency. However, the EBITDA margin is lower than in past years due to a reduced EBITDA, indicating potential challenges in managing operational costs.

Balance Sheet

The balance sheet reveals a strong equity position with a stable stockholders' equity and a favorable equity ratio. The debt-to-equity ratio shows a moderate level of leverage, which decreased in 2025, reflecting improved financial stability. The return on equity has improved significantly in 2025, indicating effective use of equity to generate profit. However, the total assets have decreased over the years, which could limit growth opportunities.

Cash Flow

Cash flow analysis shows some concerns. Operating cash flow has decreased significantly in 2025, highlighting potential issues in core operations. Free cash flow has also declined sharply, posing liquidity challenges. The free cash flow to net income ratio is low, indicating limited conversion of net income into free cash. These trends may affect the company's ability to invest and grow in the future.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.67B	11.67B	12.84B	14.93B	16.02B	15.44B
Gross Profit	898.00M	899.00M	927.00M	989.00M	1.05B	944.00M
EBITDA	514.00M	802.00M	488.00M	621.00M	454.00M	544.00M
Net Income	373.00M	373.00M	108.00M	276.00M	-101.00M	205.00M
Balance Sheet
Total Assets	6.19B	6.19B	6.34B	7.03B	6.67B	7.74B
Cash, Cash Equivalents and Short-Term Investments	898.00M	898.00M	542.00M	697.00M	418.00M	625.00M
Total Debt	1.70B	1.70B	1.49B	1.67B	1.25B	1.38B
Total Liabilities	3.90B	3.90B	3.96B	4.49B	4.22B	5.06B
Stockholders Equity	2.29B	2.29B	2.38B	2.54B	2.44B	2.69B
Cash Flow
Free Cash Flow	66.00M	8.00M	224.00M	-91.00M	73.00M	295.00M
Operating Cash Flow	381.00M	381.00M	592.00M	225.00M	526.00M	676.00M
Investing Cash Flow	297.00M	297.00M	-255.00M	-129.00M	-292.00M	-357.00M
Financing Cash Flow	-333.00M	-333.00M	-439.00M	191.00M	-439.00M	-43.00M

Johnson Matthey Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2010.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JMAT, the sentiment is Positive. The current price of 2010 is below the 20-day moving average (MA) of 2015.84, below the 50-day MA of 2059.03, and above the 200-day MA of 1713.02, indicating a neutral trend. The MACD of -17.49 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JMAT.

Johnson Matthey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	69 Neutral	£555.78M	18.71	6.22%	9.53%	0.58%	61.53%
CRDA	65 Neutral	£3.91B	27.92	6.17%	3.53%	2.36%	-13.99%
ELM	64 Neutral	£918.66M	-16.22	3.37%	1.34%	-11.78%	-92.61%
ZTF	62 Neutral	£186.37M	265.28	0.60%	1.92%	15.56%	-92.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JMAT	60 Neutral	£3.37B	-26.09	-5.62%	3.83%	-4.60%	-126.46%
SYNT	51 Neutral	£97.15M	-1.16	-7.26%	―	-4.41%	2.29%

Johnson Matthey Corporate Events

Johnson Matthey Reports Strong Half-Year Performance Amid Strategic Transformation

Johnson Matthey reported strong half-year results, with a 38% increase in pro forma underlying operating profit, despite a 78% decline in reported operating profit due to prior period disposals. The company is progressing with its transformation into a leaner, cash-generative business, with significant improvements in cash flow and a planned return of £1.4 billion to shareholders. The sale of Catalyst Technologies is on track for completion in 2026, and the company expects to achieve its medium-term targets, including growth in operating profit and enhanced shareholder returns.

Johnson Matthey Announces Key Leadership Changes

Johnson Matthey Plc has announced key leadership changes, appointing Alastair Judge as the new Chief Financial Officer and Executive Director, effective January 1, 2026. Richard Pike, the current CFO, will transition to the role of Chief Operating Officer. These changes are part of a strategic move to streamline the Group Leadership team from nine to six members, aiming to enhance the company’s focus and efficiency. The appointments are expected to support the company’s strategy to drive cash generation and increase shareholder returns.

Johnson Matthey Executives Acquire Shares Under Incentive Plan

Johnson Matthey Plc announced the monthly acquisition of shares by several key executives, including the CEO and other senior leaders, through the company’s Share Incentive Plan. This move signifies a continued commitment to aligning the interests of management with shareholders, potentially impacting the company’s market perception positively.

Johnson Matthey Reclassifies Catalyst Technologies and Reports Strong Half-Year Performance

Johnson Matthey has announced the reclassification of its Catalyst Technologies segment following its sale to Honeywell International Inc., expected to complete by the first half of 2026. The segment will be reported as a discontinued operation for the 2025/26 financial year. The company also provided a pre-close trading update for the half year ended September 2025, indicating strong performance in underlying operating profit driven by efficiency improvements and robust trading in the PGM Services business. Despite an expected cash outflow in the first half, a significant year-on-year improvement is anticipated, with a positive outlook for the full year. The Catalyst Technologies segment faces challenges with weaker demand, but maintains strong long-term growth potential.

Johnson Matthey Executives Acquire Shares Under Incentive Plan

Johnson Matthey Plc has announced the acquisition of shares by several key executives, including the CEO and Chief Technology Officer, as part of the company’s Share Incentive Plan. This move reflects the company’s ongoing commitment to align management interests with shareholder value, potentially strengthening stakeholder confidence and enhancing its market position.