Johnson Matthey (JMAT) AI Stock Analysis

• Market Cap: £3.96B
• Dividend Yield: 3.54%
• Average Volume (3M): 360.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• 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: £2,215.83
• Price Target Upside: -6.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 2,480.00p ▲(5.17% 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

Market leadership in sustainable technologies

JM's diversified portfolio across catalytic converters, advanced battery materials and PGM recycling aligns with multi-year decarbonization and EV trends. Durable technology positions and long-term OEM partnerships create high barriers to entry and steady structural demand.

Improving Clean Air margins and operating performance

Sustained margin expansion in Clean Air (200bps improvement and explicit 2027-28 margin targets) indicates durable operating leverage from pricing, mix and efficiency. Higher structural margins improve cash generation and resilience versus cyclical volume swings over coming years.

Deleveraging and planned GBP1.4bn shareholder return

Monetizing non-core assets and returning GBP1.4bn materially shifts capital structure, reducing leverage and freeing capital. This improves long-term financial flexibility, funds strategic reinvestment in growth areas and strengthens the balance sheet for cyclical shocks.

Negative Factors

Declining revenue trend

A multi-year revenue decline erodes scale advantages and can compress fixed-cost coverage. Persistently negative top-line growth constrains investment in R&D and capacity, weakens negotiating power with customers and suppliers, and risks long-term margin pressure.

Weak cash conversion and FCF decline

Deteriorating operating cash flow and sharply lower free cash flow limit the firm's ability to fund capex, working capital and organic growth. Reliance on asset sales for liquidity undermines sustainability of returns and increases vulnerability to funding or refinancing stress.

Cyclical auto and PGM volume exposure with operational delays

Heavy exposure to automotive cycles and recycling volumes creates durable revenue volatility. Subdued autocat and PGM volumes, plus refinery commissioning delays from industrial action, reduce capacity to capture pricing upside and can depress margins across product cycles.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 2358.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2358 is above the 20-day moving average (MA) of 2227.00, above the 50-day MA of 2112.08, and above the 200-day MA of 1813.09, indicating a bullish trend. The MACD of 75.77 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 90.44 is Negative, 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	70 Outperform	£607.41M	21.84	6.22%	9.48%	0.58%	61.58%
CRDA	65 Neutral	£3.85B	27.52	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£948.96M	-17.58	3.37%	1.34%	-11.78%	-92.61%
ZTF	62 Neutral	£197.59M	281.25	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	£3.96B	-30.64	-5.62%	3.54%	-4.60%	-126.46%
SYNT	51 Neutral	£103.04M	-1.24	-7.26%	―	-4.41%	2.29%

Johnson Matthey Corporate Events

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.

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.

The most recent analyst rating on (GB:JMAT) stock is a Buy with a £2365.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.

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.

The most recent analyst rating on (GB:JMAT) stock is a Buy with a £2365.00 price target. To see the full list of analyst forecasts on Johnson Matthey stock, see the GB:JMAT Stock Forecast page.