Johnson Matthey (JMAT) AI Stock Analysis

• Market Cap: £3.28B
• Dividend Yield: 3.54%
• Average Volume (3M): 360.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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: £2,134.00
• Price Target Upside: -7.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): £2.86B

• Rating: 60 Neutral
• Price Target: 2,419.00p ▲(5.27% Upside)
• Action: Downgraded Date: 12/07/25
• Date: Action: Downgraded 12/07/25

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

Underlying operating performance rebound

A 38% uplift in underlying operating performance, driven by double-digit gains in Clean Air and PGM, indicates the company’s core technologies retain structural demand and operational leverage. Sustained margin and profit expansion from these businesses supports durable earnings improvement over 2–6 months.

Improving Clean Air margins and clear margin targets

A 200bp margin uplift and explicit targets to reach 16–18% suggest structural pricing power, cost discipline, and product mix improvement in the Clean Air franchise. These margin gains enhance long-term profitability resilience and free cash flow potential as volumes normalize.

Strategic asset sale and capital return plan

Executing the Catalyst Technologies sale crystallizes value, simplifies the business mix and funds a large GBP1.4bn shareholder return. This materially strengthens financial optionality, focuses management on higher-return segments, and supports a cash-first strategy going forward.

Negative Factors

Weak operating cash flow and free cash flow

Declining operating and free cash flows reduce the company’s ability to self-fund investment, refinance debt, or sustain payouts. If conversion of earnings to cash remains weak, planned returns and reinvestment will pressure liquidity and constrain strategic flexibility over the medium term.

Net debt increase from transactional and operational cash outflows

Higher net debt from the Catalyst Technologies cash outflow and inventory build raises leverage and interest burden risk. Elevated debt limits balance sheet flexibility for capex or M&A and makes the company more sensitive to cyclical downturns and cash conversion slippage.

Volume declines and segment demand weakness

Market-driven volume declines in Catalyst Technologies and modest Clean Air and PGM recycling volumes signal structural demand softness in key end-markets. Persistent lower volumes can erode scale economics, pressure unit margins, and delay the recovery of return profiles even if market share holds.

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 with improved profitability and leverage ratios in 2025, indicating better operational efficiency and financial stability. However, challenges remain with declining revenues, lower EBITDA margins, and weakened cash flow generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.39B	11.67B	12.84B	14.93B	16.02B	15.44B
Gross Profit	802.00M	899.00M	927.00M	989.00M	1.05B	944.00M
EBITDA	537.00M	802.00M	488.00M	621.00M	454.00M	544.00M
Net Income	-129.00M	373.00M	108.00M	276.00M	-101.00M	205.00M
Balance Sheet
Total Assets	5.83B	6.19B	6.34B	7.03B	6.67B	7.74B
Cash, Cash Equivalents and Short-Term Investments	547.00M	898.00M	542.00M	697.00M	418.00M	625.00M
Total Debt	1.49B	1.70B	1.49B	1.67B	1.25B	1.38B
Total Liabilities	3.73B	3.90B	3.96B	4.49B	4.22B	5.06B
Stockholders Equity	2.10B	2.29B	2.38B	2.54B	2.44B	2.69B
Cash Flow
Free Cash Flow	245.00M	8.00M	224.00M	-91.00M	73.00M	295.00M
Operating Cash Flow	521.00M	381.00M	592.00M	225.00M	526.00M	676.00M
Investing Cash Flow	-306.00M	297.00M	-255.00M	-129.00M	-292.00M	-357.00M
Financing Cash Flow	-265.00M	-333.00M	-439.00M	191.00M	-439.00M	-43.00M

Johnson Matthey Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2298.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2298 is above the 20-day moving average (MA) of 2180.25, above the 50-day MA of 2251.74, and above the 200-day MA of 1988.20, indicating a neutral trend. The MACD of -87.03 indicates Positive momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JMAT.

Johnson Matthey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	70 Outperform	£561.44M	22.53	6.22%	9.48%	0.58%	61.58%
CRDA	66 Neutral	£3.97B	60.70	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£915.04M	-9.47	3.37%	1.34%	-11.78%	-92.61%
ZTF	62 Neutral	£199.05M	4.13	0.60%	2.00%	15.56%	-92.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JMAT	60 Neutral	£3.28B	-46.91	-5.62%	3.54%	-4.60%	-126.46%
SYNT	51 Neutral	£29.11M	-1.25	-7.26%	―	-4.41%	2.29%

Johnson Matthey Corporate Events

Johnson Matthey CEO Condon Buys Shares in Market-Reported Transaction

Johnson Matthey has disclosed a share transaction by chief executive officer Liam Condon, in line with regulatory requirements for reporting dealings by senior management. The filing confirms that Condon acquired ordinary shares in the company on the London Stock Exchange, reinforcing transparency around executive holdings for investors and other stakeholders.

The CEO purchased 5,226 Johnson Matthey ordinary shares at a price of £19.22688 per share, representing a total consideration of £100,983.57. While the announcement is primarily procedural, such insider purchases are often watched by the market as potential indicators of management’s confidence in the company’s prospects and alignment with shareholder interests.

The most recent analyst rating on (GB:JMAT) stock is a Hold with a £2419.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.

Johnson Matthey Cuts Price on Honeywell Catalyst Deal but Boosts Planned Cash Return

Johnson Matthey has agreed with Honeywell International to extend the long stop date for closing the sale of its Catalyst Technologies business from February to 21 July 2026, with a possible further extension to 21 August 2026 to secure remaining antitrust approvals. As part of the revised terms, the enterprise value of the deal has been reset to £1.325 billion on a cash- and debt-free basis, reflecting weaker 2025/26 performance in Catalyst Technologies due to deferred sustainable solutions projects and reduced catalyst margins in a tough market.

Following completion, Johnson Matthey now expects to return about £1 billion of net proceeds to shareholders, split between an £800 million special dividend with share consolidation and a £200 million on-market buyback. The group says it remains on track with its cash-focused strategy, guiding to underlying operating profit growth at the upper end of mid-single digits and materially higher free cash flow versus last year, underscoring a continued focus on capital discipline and shareholder returns despite the reduced valuation for the divested unit.

The most recent analyst rating on (GB:JMAT) stock is a Hold with a £2419.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.

Johnson Matthey CEO and CFO add shares under incentive plan

Johnson Matthey has disclosed routine share purchases by its top executives under the company’s Share Incentive Plan. Chief executive Liam Condon and chief financial officer Alastair Judge each acquired 10 ordinary shares on 11 February 2026 at £23.4232 per share on the London Stock Exchange.

The transactions, which total £234.232 each, reflect ongoing participation in the company’s all-employee ownership scheme rather than a strategic change in holdings. Such regular purchases align executive interests with shareholders and signal continued engagement with the group’s long-term share-based incentives.

The most recent analyst rating on (GB:JMAT) stock is a Hold with a £2455.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.

Johnson Matthey CEO and CFO Add Shares via Monthly Incentive Plan

Johnson Matthey has disclosed that Chief Executive Officer Liam Condon and Chief Financial Officer Alastair Judge have each acquired additional ordinary shares in the company through its monthly Share Incentive Plan. Condon purchased 10 shares and Judge 12 shares, both at a price of £23.207 per share on 13 January 2026 on the London Stock Exchange, underscoring ongoing executive participation in the company’s equity-based remuneration scheme and aligning senior management’s interests more closely with those of shareholders.

The most recent analyst rating on (GB:JMAT) stock is a Buy with a £2550.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.

Johnson Matthey Executives Acquire Shares, Aligning Interests with Stakeholders

Johnson Matthey Plc has announced transactions involving the monthly acquisition of shares by key executives through the company’s Share Incentive Plan. This move, involving figures such as the CEO and other senior leaders, underscores the company’s commitment to aligning management interests with shareholder value, potentially impacting its market perception and stakeholder confidence.

The most recent analyst rating on (GB:JMAT) stock is a Hold with a £2100.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.