Johnson Matthey (GB:JMAT)
LSE:JMAT
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Johnson Matthey
(LSE:JMAT)
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Rating:61Neutral
Price Target:
2,294.00 p
▼(-0.17% Downside)
Action:Reiterated
Date:05/29/26
The score is driven by mixed financial performance—improved revenue and free cash flow but weakened profitability and a net loss—partly offset by a constructive technical setup and a relatively positive earnings call with cash-flow-focused guidance. Valuation is middling due to the negative P/E despite a supportive dividend yield.
Positive Factors
Improved free cash flow
The material improvement to roughly £159M of free cash flow marks a shift toward sustained internal funding. Over the next 2–6 months stronger FCF supports dividends, debt reduction and reinvestment, increasing liquidity and reducing reliance on external financing for strategic moves.
Negative Factors
Profitability deterioration
A reported net loss and negative margins reflect significant earnings volatility and weakened returns on equity. Over several months this erodes retained earnings and the equity cushion, constraining capital allocation and raising execution risk for margin recovery and sustained shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
The material improvement to roughly £159M of free cash flow marks a shift toward sustained internal funding. Over the next 2–6 months stronger FCF supports dividends, debt reduction and reinvestment, increasing liquidity and reducing reliance on external financing for strategic moves.
Read all positive factors
Johnson Matthey (JMAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.61B
Dividend Yield3.54%
Average Volume (3M)360.18K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth7.70%
EPS Growth-128.57%
CountryUK
Employees11,685
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
£2,304.00Price Target Upside0.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.54
Revenue Forecast (FY)£2.61B
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 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: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
Positive
2298.00
Price Trends
2054.38
Positive
2040.03
Positive
2035.77
Positive
Market Momentum
20.50
Negative
57.60
Neutral
60.22
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 2298 is above the 20-day moving average (MA) of 2100.34, above the 50-day MA of 2054.38, and above the 200-day MA of 2035.77, indicating a bullish trend. The MACD of 20.50 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £220.09M | 9.67 | 18.25% | 2.00% | 7.24% | ― | |
66 Neutral | £4.40B | 72.56 | 2.82% | 3.45% | 4.38% | -60.87% | |
63 Neutral | £536.38M | -27.25 | -4.95% | 9.48% | -1.24% | -166.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | £3.61B | -37.71 | -4.66% | 3.54% | 7.70% | -128.57% | |
58 Neutral | £891.97M | -25.84 | -6.85% | 1.34% | -21.51% | 7.34% | |
54 Neutral | £181.65M | -1.15 | -16.66% | ― | -12.46% | -116.21% |
* Basic Materials Sector Average
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Johnson Matthey Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Johnson Matthey grants performance-based share award to COO Richard Pike
Positive
Mar 24, 2026
Johnson Matthey has granted Chief Operating Officer Richard Pike a share award under its 2025–2028 Performance Share Plan, comprising 4,357 ordinary shares with a reference price of £17.2120, implying a notional value of about £75,...
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...
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.