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Johnson Matthey
(LSE:JMAT)
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Rating:52Neutral
Price Target:
2,040.00 p
▼(-11.23% Downside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weak profitability (net loss and compressed margins) despite a revenue rebound, while improved free cash flow and reduced debt provide partial support. Technical signals are also unfavorable with the price below key moving averages and subdued momentum. Valuation is mixed: a solid dividend yield helps, but the negative P/E reflects loss-making performance.
Positive Factors
Regulatory-driven demand and durable B2B model
Johnson Matthey's core catalyst business is structurally tied to emissions regulation and industrial process needs. Regulatory tightening and recurring replacement cycles create stable, long-term B2B revenue streams and high switching costs for proprietary catalyst formulations and process know-how.
Negative Factors
Sharp profitability deterioration & margin compression
Earnings weakness and compressed margins indicate structural pressure on pricing, mix, or input costs. Persistent low or negative margins erode reinvestment capacity and shareholder returns, increasing reliance on cost actions or higher volumes to restore sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory-driven demand and durable B2B model
Johnson Matthey's core catalyst business is structurally tied to emissions regulation and industrial process needs. Regulatory tightening and recurring replacement cycles create stable, long-term B2B revenue streams and high switching costs for proprietary catalyst formulations and process know-how.
Read all positive factors
Johnson Matthey (JMAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.22B
Dividend Yield3.54%
Average Volume (3M)360.18K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth7.70%
EPS Growth-128.57%
CountryUK
Employees10,037
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.57
Shares Outstanding168,055,760
10 Day Avg. Volume376,510
30 Day Avg. Volume360,183
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.58
Price to Sales (P/S)0.25
P/FCF Ratio20.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,337.50Price Target Upside1.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.54
Revenue Forecast (FY)£2.64B
Johnson Matthey Business Overview & Revenue Model
Company Description
Johnson Matthey Plc is a global enterprise specializing in sustainable technologies, particularly in clean air solutions, advanced catalysts, hydrogen technology, and services related to platinum group metals (PGMs). Its extensive operations span ...
How the Company Makes Money
Johnson Matthey makes money primarily by selling catalyst products, catalyst-related components, and process technologies to industrial and automotive customers, and by providing associated services over the life of those products. Its main revenu...
Johnson Matthey Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a mix of strong financial performance and strategic progress, particularly in operating profit and cash flow. However, challenges such as increased net debt, Clean Air volume decline, and delays in the PGM refinery were noted. Despite these issues, the sentiment leans positive due to the significant achievements and forward momentum in key areas.Positive Updates
Strong Underlying Operating Performance
The underlying operating performance increased by 38%, with an 11% increase in Clean Air and a 33% increase in Platinum Group Metals.
Negative Updates
Net Debt Increase
Net debt increased due to cash outflow from Catalyst Technologies and a stock build in the U.S. refinery.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Underlying Operating Performance
The underlying operating performance increased by 38%, with an 11% increase in Clean Air and a 33% increase in Platinum Group Metals.
Read all positive updates
Company Guidance
During the call, Johnson Matthey provided several key metrics and guidance for the fiscal period. The company reported a 38% increase in underlying operating performance, driven by an 11% rise in Clean Air and a 33% increase in Platinum Group Metals (PGM). They highlighted a significant turnaround in cash flow from a previous cash outflow to a small cash inflow, indicating progress in their new cash-focused business model. The sale of Catalyst Technologies to Honeywell is on track to close in the first half of 2026, with plans to return GBP 1.4 billion to shareholders upon closure. Clean Air achieved a 200 basis point margin increase, aiming for a 14% to 15% margin by the end of the fiscal year and 16% to 18% by 2027-2028. The PGM Services business reported a 33% increase in underlying operating profit, with the new PGM refinery expected to be operational by March 2026, despite a few months' delay. Hydrogen Technologies are on track for a breakeven run rate by March 2026. Additionally, the company expects to generate GBP 250 million in free cash flow consistently moving forward.Johnson Matthey Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.57B | 11.67B | 12.84B | 14.93B | 16.02B |
| Gross Profit | 629.00M | 899.00M | 927.00M | 989.00M | 1.05B |
| EBITDA | 479.00M | 802.00M | 488.00M | 621.00M | 454.00M |
| Net Income | -96.00M | 373.00M | 108.00M | 276.00M | -101.00M |
Balance Sheet | |||||
| Total Assets | 5.97B | 6.19B | 6.34B | 7.03B | 6.67B |
| Cash, Cash Equivalents and Short-Term Investments | 590.00M | 898.00M | 542.00M | 697.00M | 418.00M |
| Total Debt | 1.41B | 1.70B | 1.49B | 1.67B | 1.25B |
| Total Liabilities | 3.96B | 3.90B | 3.96B | 4.49B | 4.22B |
| Stockholders Equity | 2.02B | 2.29B | 2.38B | 2.54B | 2.44B |
Cash Flow | |||||
| Free Cash Flow | 159.00M | 8.00M | 224.00M | -91.00M | 73.00M |
| Operating Cash Flow | 376.00M | 381.00M | 592.00M | 225.00M | 526.00M |
| Investing Cash Flow | -281.00M | 297.00M | -255.00M | -129.00M | -292.00M |
| Financing Cash Flow | -444.00M | -333.00M | -439.00M | 191.00M | -439.00M |
Johnson Matthey Technical Analysis
Negative
2298.00
Price Trends
2035.35
Negative
1980.73
Negative
2044.22
Negative
Market Momentum
-37.16
Negative
43.04
Neutral
28.19
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 1955.15, above the 50-day MA of 2035.35, and above the 200-day MA of 2044.22, indicating a bearish trend. The MACD of -37.16 indicates Negative momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 28.19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £215.91M | 9.54 | 18.25% | 2.00% | 7.24% | ― | |
66 Neutral | £4.09B | 65.71 | 2.82% | 3.45% | 4.38% | -60.87% | |
63 Neutral | £618.24M | -30.87 | -4.95% | 9.48% | -1.24% | -166.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | £919.26M | 23.01 | -6.85% | 1.34% | -21.51% | 7.34% | |
52 Neutral | £3.22B | -33.65 | -4.66% | 3.54% | 7.70% | -128.57% | |
46 Neutral | £135.58M | -0.90 | -16.66% | ― | -12.46% | -116.21% |
* Basic Materials Sector Average
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Johnson Matthey Corporate Events
Other
Johnson Matthey Executives Add Shares Through Incentive Plan
Neutral
Jun 11, 2026
Johnson Matthey has disclosed routine share transactions by three senior executives under the company’s Share Incentive Plan. Chief executive Liam Condon acquired 12 ordinary shares, while chief financial officer Alastair Judge and chief ope...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Johnson Matthey Publishes 2026 Annual Report and Sets July AGM
Neutral
Jun 10, 2026
Johnson Matthey has published its 2026 Annual Report and Accounts and the Notice of Annual General Meeting, making both documents available on its investor website and submitting them to the UK Financial Conduct Authority for access via the Nation...
Regulatory Filings and Compliance
Johnson Matthey chair boosts stake with £149,000 share purchase
Positive
Jun 3, 2026
Johnson Matthey chair Andrew Cosslett has purchased 6,884 ordinary shares in the company on 3 June 2026, according to a regulatory filing. The shares were bought on the London Stock Exchange at £21.68 each, for a total consideration of about ...
Regulatory Filings and Compliance
Johnson Matthey CEO Condon Buys Shares Worth Nearly £96,000
Positive
Jun 2, 2026
Johnson Matthey disclosed that its chief executive officer, Liam Condon, acquired 4,500 ordinary shares in the company on 1 June 2026. The transaction, executed on the London Stock Exchange at a price of £21.26694 per share for a total consid...
Business Operations and StrategyM&A Transactions
Johnson Matthey to buy Cormetech in $360m move to boost Clean Air Solutions
Positive
May 28, 2026
Johnson Matthey has agreed to acquire U.S. SCR catalyst specialist Cormetech for an enterprise value of $360 million in cash, plus up to $100 million in earn-outs linked to future performance, in a move that sharply scales its Clean Air Solutions ...
Business Operations and StrategyExecutive/Board Changes
Johnson Matthey strengthens board with appointment of new senior independent director
Positive
May 28, 2026
Johnson Matthey has announced a refresh of its board, confirming that Senior Independent Director Barbara Jeremiah and Remuneration Committee chair John O’Higgins will retire from the board at the conclusion of the company’s annual gen...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A Transactions
Johnson Matthey boosts cash flow as it reshapes portfolio with Cormetech deal and Catalyst Technologies sale
Positive
May 28, 2026
Johnson Matthey reported a sharp improvement in cash generation for the year to 31 March 2026, with free cash flow rising 163% to £168 million and underlying operating profit up 14% despite lower precious metal-related sales. Clean Air margin...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Johnson Matthey boosts cash flow as portfolio reshaping accelerates
Positive
May 28, 2026
Johnson Matthey reported a sharp improvement in cash generation for the year to 31 March 2026, with free cash flow up 163% to £168 million and underlying operating profit from continuing operations rising 14% at constant currency. While repor...
Other
Johnson Matthey Executives Add Shares Through Incentive Plan
Neutral
May 14, 2026
Johnson Matthey has reported routine share dealings by its top executives under the company’s Share Incentive Plan. Chief executive Liam Condon acquired 12 ordinary shares, while chief financial officer Alastair Judge and chief operating off...
Other
Johnson Matthey Executives Add Shares via Monthly Incentive Plan
Positive
Apr 16, 2026
Johnson Matthey has disclosed that chief executive Liam Condon, chief financial officer Alastair Judge and chief operating officer Richard Pike have each acquired small numbers of ordinary shares through the company’s monthly Share Incentive...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.