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Johnson Matthey PLC (JMPLY)
OTHER OTC:JMPLY
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Johnson Matthey
(OTC:JMPLY)
Rating:69Neutral
Price Target:
$54.00
â–²(8.54%Upside)
Johnson Matthey (JMPLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.16B
Dividend Yield5.92%
Average Volume (3M)1.88K
Price to Earnings (P/E)9.2
Beta (1Y)0.74
Revenue Growth-7.72%
EPS Growth247.15%
CountryUS
Employees11,685
SectorBasic Materials
Sector Strength71
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.47
Shares Outstanding83,919,395
10 Day Avg. Volume1,732
30 Day Avg. Volume1,879
Financial Highlights & Ratios
PEG Ratio-2.85
Price to Book (P/B)4.42
Price to Sales (P/S)0.00
P/FCF Ratio40.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Johnson Matthey Business Overview & Revenue Model
Company DescriptionJohnson Matthey (JMPLY) is a global leader in sustainable technologies, specializing in catalysis, precious metals, and chemical processes. Operating across various sectors, the company provides solutions that enhance the efficiency and sustainability of industrial processes. Its core products and services include automotive emission control catalysts, process technologies, and materials for battery and fuel cell applications.
How the Company Makes MoneyJohnson Matthey generates revenue through the sale of its advanced materials and chemical products, primarily targeting industries such as automotive, chemicals, and energy. Key revenue streams include the production and sale of emission control catalysts used in vehicles to reduce harmful emissions, as well as process catalysts utilized in the chemical and petrochemical industries. The company also earns from its precious metals recycling and refining business, which capitalizes on the recovery of valuable metals from used products. Significant partnerships with automotive manufacturers and industrial clients play a crucial role in driving sales and ensuring a steady demand for its sustainable technology solutions.
Johnson Matthey Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: 29.62%|
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a positive outlook with significant highlights such as the profitable sale of Catalyst Technologies, improved Clean Air margins, and strong shareholder returns. However, these were offset by challenges in the hydrogen business and the Clean Air sales decline, resulting in a balanced overall sentiment.Q4-2025 Updates
Positive Updates
Sale of Catalyst Technologies
Johnson Matthey announced the sale of Catalyst Technologies to Honeywell for £1.8 billion. The deal values Catalyst Technologies at 15x EBITDA, a significant increase compared to three years ago when the valuation was much lower.
Improved Clean Air Margins
Clean Air's operating margin improved from 8.7% in 2022 to 11.8% and is expected to reach 16% to 18% by 2027-2028 due to strategic improvements and operational efficiencies.
Strong Cash Flow and Shareholder Returns
Johnson Matthey generated strong free cash flow of £572 million, with plans to return £1.4 billion to shareholders from the Catalyst Technologies sale. Additionally, the company commits to delivering £200 million in cash returns annually from 2026-2027 onwards.
World-Class Refinery Nearing Completion
The new PGM refinery is on track to begin commissioning at the end of 2025, promising increased efficiency and a step change in cash generation.
Negative Updates
Decline in Clean Air Sales
Clean Air sales declined by 8% due to global automotive production challenges, impacting overall performance despite margin improvements.
Hydrogen Business Impairment
The hydrogen market's slow growth led to a significant impairment charge, with over half of the business's £200 million asset base written off.
Challenges with PGM Refinery Transition
The transition to the new PGM refinery will involve additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability.
Company Guidance
During the call, Johnson Matthey provided extensive guidance on the company's strategic direction following the sale of Catalyst Technologies to Honeywell for £1.8 billion. This transaction is expected to close in the first half of 2026, subject to regulatory approval. The company plans to return £1.4 billion from the net sale proceeds to shareholders, translating to £8 per share based on a recent share price of £14. Post-transaction, Johnson Matthey will focus on its core businesses: Clean Air and Platinum Group Metal Services (PGMS). Clean Air is forecasted to generate over £2 billion in sales by 2027-2028 with margins between 16% and 18%, while PGMS aims for £450 million in sales with a 30% margin. The company's new world-class refinery is on track to enhance cash flow, with sustainable free cash flow anticipated to reach at least £250 million by 2027-2028. From 2026-2027 onwards, Johnson Matthey commits to returning £200 million annually to shareholders. The company’s strategy emphasizes operational efficiencies, cost reductions, and leveraging existing capabilities to drive profitability and cash generation.Johnson Matthey Financial Statement Overview
Summary
Johnson Matthey faces declining revenue and profitability challenges, impacting its growth trajectory. However, it maintains a stable balance sheet with reasonable leverage and a strong equity base. The positive shift in cash flow patterns highlights improved cash generation abilities, positioning the company for potential future stabilization and growth.Income Statement
Johnson Matthey has experienced a decline in revenue over recent years, with a revenue decrease of 14% in the most recent annual period. The gross profit margin is at 7.0%, indicating moderate efficiency in production. The net profit margin has dropped to 0.8%, reflecting challenges in maintaining profitability. The EBIT margin stands at 1.9%, while the EBITDA margin is 3.8%, both suggestive of tight operational margins.65
Positive
Balance Sheet
The company's debt-to-equity ratio is manageable at 0.63, indicating a balanced approach to leverage. The return on equity is low at 4.5%, suggesting limited efficiency in generating profits from shareholders' equity. The equity ratio is 37.6%, which reflects a solid capital base and reasonable financial stability.72
Positive
Cash Flow
Johnson Matthey shows strong cash flow management with significant improvement in free cash flow from negative to positive $224 million. The operating cash flow to net income ratio is robust at 5.48, indicating effective conversion of revenue into cash. The free cash flow to net income ratio has improved, reflecting enhanced liquidity and financial flexibility.78
Positive
| Breakdown | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.84B | 14.93B | 16.02B | 15.44B | 14.58B |
| Gross Profit | 898.00M | 989.00M | 1.05B | 944.00M | 981.00M |
| EBITDA | 488.00M | 621.00M | 467.00M | 564.00M | 673.00M |
| Net Income | 108.00M | 276.00M | -101.00M | 205.00M | 255.00M |
Balance Sheet | |||||
| Total Assets | 6.34B | 7.03B | 6.67B | 7.74B | 7.36B |
| Cash, Cash Equivalents and Short-Term Investments | 542.00M | 697.00M | 418.00M | 625.00M | 332.00M |
| Total Debt | 1.49B | 1.67B | 1.25B | 1.38B | 1.43B |
| Total Liabilities | 3.96B | 4.49B | 4.22B | 5.06B | 4.54B |
| Stockholders Equity | 2.38B | 2.54B | 2.44B | 2.69B | 2.82B |
Cash Flow | |||||
| Free Cash Flow | 224.00M | -91.00M | 73.00M | 295.00M | 57.00M |
| Operating Cash Flow | 592.00M | 225.00M | 526.00M | 676.00M | 500.00M |
| Investing Cash Flow | -255.00M | -129.00M | -292.00M | -357.00M | -435.00M |
| Financing Cash Flow | -439.00M | 191.00M | -439.00M | -43.00M | -168.00M |
Johnson Matthey Technical Analysis
Positive
49.75
Price Trends
41.74
Positive
37.90
Positive
36.65
Positive
Market Momentum
1.98
Positive
72.16
Negative
89.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JMPLY, the sentiment is Positive. The current price of 49.75 is above the 20-day moving average (MA) of 47.34, above the 50-day MA of 41.74, and above the 200-day MA of 36.65, indicating a bullish trend. The MACD of 1.98 indicates Positive momentum. The RSI at 72.16 is Negative, neither overbought nor oversold. The STOCH value of 89.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JMPLY.
Johnson Matthey Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.16B | 9.20 | 16.05% | 5.92% | -7.72% | 247.15% | |
67 Neutral | $4.55B | 35.50 | 11.87% | 1.52% | 6.30% | 41.01% | |
67 Neutral | $4.55B | 35.50 | 11.87% | 1.52% | 6.30% | 41.01% | |
62 Neutral | $10.15B | 9.75 | -0.17% | 2.87% | 2.22% | -32.49% | |
58 Neutral | $3.28B | 33.00 | 5.62% | 1.51% | -0.09% | -37.60% | |
58 Neutral | $3.28B | 33.00 | 5.62% | 1.51% | -0.09% | -37.60% | |
55 Neutral | $2.21B | 83.78 | 2.21% | 1.89% | -7.91% | -81.73% | |
55 Neutral | $2.21B | 83.78 | 2.21% | 1.89% | -7.91% | -81.73% | |
50 Neutral | $2.52B | 43.19 | 2.94% | 3.65% | -1.13% | -81.74% | |
50 Neutral | $2.52B | 43.19 | 2.94% | 3.65% | -1.13% | -81.74% | |
48 Neutral | $2.40B | 21.03 | -3.02% | 3.09% | -7.63% | -157.37% | |
48 Neutral | $2.40B | 21.03 | -3.02% | 3.09% | -7.63% | -157.37% |
* Basic Materials Sector Average
Performance Comparison
JMPLY
Johnson Matthey
49.85
9.73
24.25%
ASH
Ashland
52.43
-37.50
-41.70%
ASH
Ashland
52.43
-37.50
-41.70%
FUL
H.B. Fuller Company
60.76
-14.92
-19.71%
FUL
H.B. Fuller Company
60.76
-14.92
-19.71%
IOSP
Innospec
86.47
-31.61
-26.77%
IOSP
Innospec
86.47
-31.61
-26.77%
OLN
Olin
21.07
-23.27
-52.48%
OLN
Olin
21.07
-23.27
-52.48%
SXT
Sensient Technologies
107.23
34.82
48.09%
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.