Johnson Matthey (GB:JMAT)
LSE:JMAT
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Johnson Matthey
(LSE:JMAT)
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Rating:60Neutral
Price Target:
1,877.00 p
▼(-18.32% Downside)
Action:DowngradedDate: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
Clean Air margin expansion
Sustained margin expansion in the core Clean Air business reflects pricing power, product differentiation and operational improvements. Higher and targeted margins imply more durable profitability per unit of sales, supporting reinvestment and resilience to cyclical volume swings in emissions markets.
Negative Factors
Declining revenue trend
A persistent revenue decline reduces scale economics and limits room to absorb fixed costs. Unless matched by sustained margin expansion or new growth streams, shrinking top-line constrains long-term investment capacity, R&D funding and market-share expansion in core catalyst markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Clean Air margin expansion
Sustained margin expansion in the core Clean Air business reflects pricing power, product differentiation and operational improvements. Higher and targeted margins imply more durable profitability per unit of sales, supporting reinvestment and resilience to cyclical volume swings in emissions markets.
Read all positive factors
Johnson Matthey (JMAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.16B
Dividend Yield3.54%
Average Volume (3M)360.18K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-4.60%
EPS Growth-126.46%
CountryUK
Employees11,685
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.51
Shares Outstanding168,055,760
10 Day Avg. Volume376,510
30 Day Avg. Volume360,183
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.02
Price to Sales (P/S)0.20
P/FCF Ratio292.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,073.33Price Target Upside-9.78% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.28
Revenue Forecast (FY)£2.86B
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 ...
How the Company Makes Money
Johnson Matthey makes money primarily by selling high-value catalyst products and related technologies, plus associated services, to industrial and automotive customers. A major revenue stream comes from supplying emissions-control catalysts (for ...
Johnson Matthey Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 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
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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
Negative
2298.00
Price Trends
2138.36
Negative
2125.22
Negative
2006.26
Negative
Market Momentum
-75.23
Negative
41.77
Neutral
64.75
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 1917.35, above the 50-day MA of 2138.36, and above the 200-day MA of 2006.26, indicating a bearish trend. The MACD of -75.23 indicates Negative momentum. The RSI at 41.77 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 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 | £492.68M | 22.53 | 6.40% | 9.48% | 0.58% | 61.58% | |
70 Outperform | £163.92M | 8.69 | 18.25% | 2.00% | 15.56% | -92.94% | |
66 Neutral | £3.96B | 60.70 | 6.17% | 3.45% | 2.36% | -13.99% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £3.16B | -46.91 | -5.87% | 3.54% | -4.60% | -126.46% | |
58 Neutral | £840.02M | -28.06 | -6.85% | 1.34% | -11.78% | -92.61% | |
51 Neutral | £58.88M | -1.25 | -7.26% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
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Johnson Matthey Corporate Events
Regulatory Filings and Compliance
Johnson Matthey CEO and CFO report routine share purchases under incentive plan
Neutral
Mar 12, 2026
Johnson Matthey has disclosed routine share transactions by its top executives under the company’s Share Incentive Plan. Chief executive Liam Condon acquired 14 ordinary shares at £19.41037 each, while chief financial officer Alastair J...
Business Operations and StrategyExecutive/Board Changes
Johnson Matthey Director to Chair Technip Energies
Positive
Feb 27, 2026
Johnson Matthey has announced that non-executive director John O’Higgins is expected to become non-executive chair of Technip Energies NV following that company’s annual general meeting on 5 May 2026. The additional external board role...
DividendsRegulatory Filings and Compliance
Johnson Matthey Executives Acquire Shares Through Dividend Reinvestment Plans
Neutral
Feb 24, 2026
Johnson Matthey has disclosed routine share transactions by its top executives under regulatory rules for persons discharging managerial responsibilities. The filings cover purchases of ordinary shares made through dividend reinvestment plans and ...
Regulatory Filings and Compliance
Johnson Matthey Chair Boosts Stake with £99,000 Share Purchase
Positive
Feb 24, 2026
Johnson Matthey chair Andrew Cosslett has purchased 5,136 ordinary shares in the company on the London Stock Exchange, paying £19.3709 per share in a transaction valued at £99,488.94. The on-market purchase increases the chair’s pe...
Regulatory Filings and Compliance
Johnson Matthey CEO Condon Buys Shares in Market-Reported Transaction
Neutral
Feb 23, 2026
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 ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Johnson Matthey Cuts Price on Honeywell Catalyst Deal but Boosts Planned Cash Return
Neutral
Feb 23, 2026
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 ...
Other
Johnson Matthey CEO and CFO add shares under incentive plan
Neutral
Feb 12, 2026
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...
Other
Johnson Matthey CEO and CFO Add Shares via Monthly Incentive Plan
Neutral
Jan 14, 2026
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...
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.