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Johnson Matthey PLC (JMPLY)
OTHER OTC:JMPLY
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Johnson Matthey
(OTC:JMPLY)
Rating:72Outperform
Price Target:
$55.00
â–²(10.49% Upside)
Johnson Matthey (JMPLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.18B
Dividend Yield4.08%
Average Volume (3M)812.00
Price to Earnings (P/E)9.3
Beta (1Y)0.75
Revenue Growth-7.72%
EPS Growth247.15%
CountryUS
Employees11,685
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.47
Shares Outstanding83,919,395
10 Day Avg. Volume1,174
30 Day Avg. Volume812
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit4.25
Enterprise Value/Ebitda7.43
Forecast
1Y Price Target
$55.00Price Target Upside10.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Johnson Matthey Business Overview & Revenue Model
Company DescriptionJohnson Matthey (JMPLY) is a global leader in sustainable technologies, specializing in the development of advanced materials and processes that contribute to cleaner air, improved health, and enhanced energy efficiency. The company operates primarily in sectors such as catalyst technology, precious metals, and specialty chemicals, offering a range of products and services that include automotive catalysts, battery materials, and fine chemicals. With a strong focus on innovation and environmental sustainability, Johnson Matthey aims to drive the transition to a low-carbon economy.
How the Company Makes MoneyJohnson Matthey generates revenue through several key streams, primarily by providing catalyst solutions for the automotive and industrial sectors, which help reduce harmful emissions. The company earns significant income from the sale of precious metals, particularly platinum, palladium, and rhodium, which are essential for catalytic converters. Additionally, JMPLY provides specialty chemicals and materials for pharmaceutical and industrial applications, contributing to its revenue. Partnerships with automotive manufacturers and technological collaborations enhance its market reach and innovation capabilities, further bolstering its financial performance. The company's commitment to sustainability and investment in R&D also play crucial roles in driving future growth and profitability.
Johnson Matthey Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: 29.70%|
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call showcased significant positive strides with the sale of Catalyst Technologies and improved cash flow and margins in Clean Air, alongside strong commitments to shareholder returns. However, challenges remain in the hydrogen market and automotive sector, and there is a need to manage central costs effectively.Q4-2025 Updates
Positive Updates
Sale of Catalyst Technologies
Johnson Matthey announced the sale of its Catalyst Technologies business to Honeywell for £1.8 billion, which is about 80% of the market cap for less than 20% of the business. £1.4 billion will be returned to shareholders.
Improved Clean Air Margins
Clean Air margins have improved from 8.7% in 2022 to 11.8%, with an expectation to reach mid-teens by the end of the year and 16-18% by 2027-2028.
Strong Free Cash Flow
Generated £572 million of EBITDA and positive free cash flow for the year, with a £400 million improvement in cash flow from the first half to the second half.
Commitment to Shareholder Returns
Johnson Matthey is committed to delivering £200 million in cash returns to shareholders annually from 2026-2027 onwards.
New World-Class Refinery
The new refinery, set to be commissioned by the end of 2026, is expected to significantly increase cash flow and operational efficiency.
Negative Updates
Challenges in Hydrogen
The hydrogen market has not developed as expected, leading to impairments and a restructuring of the business.
Decline in Clean Air Sales
Clean Air sales declined by 8%, mainly due to the challenging global automotive production environment.
PGM Segment Decline
PGM Services is expected to experience a slight decline due to lower metal recoveries and a challenging market environment.
Stranded Central Costs
£15 million in costs charged to Catalyst Technologies will need to be absorbed or reduced as part of central cost management.
Company Guidance
In a recent conference call, Johnson Matthey detailed its strategic focus and financial outlook following the announcement of selling its Catalyst Technologies business to Honeywell for £1.8 billion. The company highlighted the transformation of Catalyst Technologies, improving its operating margin from 7% to 14% and increasing sales by 50% over three years. Johnson Matthey plans to return £1.4 billion to shareholders from the sale proceeds, equating to £8 per share, and aims for a new debt/leverage ratio of 1 to 1.5. Looking forward, they expect Clean Air margins to reach 16%-18% by 2027-2028, and with the commissioning of a new PGM refinery, they project sustainable free cash flow of at least £250 million annually from 2026-2027 onwards. The company remains committed to generating £200 million in cash returns each year from 2026-2027.Johnson Matthey Financial Statement Overview
Summary
Johnson Matthey's financial performance is characterized by stable operational efficiency but inconsistent profitability and fluctuating cash flows. The balance sheet remains strong, though high liabilities pose risks.Income Statement
Johnson Matthey has shown fluctuating revenue trends with a declining trajectory in recent years. The gross profit margin has remained relatively stable, indicating cost controls, but net profit margin has varied significantly, reflecting volatility in net income. While EBIT and EBITDA margins indicate reasonable operational efficiency, the overall profitability is inconsistent due to variable net income.60
Neutral
Balance Sheet
The balance sheet of Johnson Matthey shows a stable equity base, with a consistent debt-to-equity ratio over the years, indicating manageable leverage. The equity ratio is healthy, reflecting a strong asset base funded by equity. However, there are concerns regarding the relatively high total liabilities, which could pose risks if not managed effectively.65
Positive
Cash Flow
The company's cash flow situation displays some instability, with free cash flow fluctuating and declining recently. Operating cash flow to net income ratio suggests effective cash generation from operations, but variability in free cash flow indicates potential challenges in managing capital expenditures and other cash needs.58
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.67B | 12.84B | 14.93B | 16.02B | 15.44B |
| Gross Profit | 899.00M | 898.00M | 989.00M | 1.05B | 944.00M |
| EBITDA | 802.00M | 488.00M | 621.00M | 467.00M | 564.00M |
| Net Income | 373.00M | 108.00M | 276.00M | -101.00M | 205.00M |
Balance Sheet | |||||
| Total Assets | 6.19B | 6.34B | 7.03B | 6.67B | 7.74B |
| Cash, Cash Equivalents and Short-Term Investments | 898.00M | 542.00M | 697.00M | 418.00M | 625.00M |
| Total Debt | 1.70B | 1.49B | 1.67B | 1.25B | 1.38B |
| Total Liabilities | 3.90B | 3.96B | 4.49B | 4.22B | 5.06B |
| Stockholders Equity | 2.29B | 2.38B | 2.54B | 2.44B | 2.69B |
Cash Flow | |||||
| Free Cash Flow | 8.00M | 224.00M | -91.00M | 73.00M | 295.00M |
| Operating Cash Flow | 381.00M | 592.00M | 225.00M | 526.00M | 676.00M |
| Investing Cash Flow | 297.00M | -255.00M | -129.00M | -292.00M | -357.00M |
| Financing Cash Flow | -333.00M | -439.00M | 191.00M | -439.00M | -43.00M |
Johnson Matthey Technical Analysis
Positive
49.78
Price Trends
48.27
Positive
41.72
Positive
38.21
Positive
Market Momentum
0.17
Negative
64.38
Neutral
99.22
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 49.78 is above the 20-day moving average (MA) of 48.47, above the 50-day MA of 48.27, and above the 200-day MA of 38.21, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 99.22 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.18B | 9.25 | 16.05% | 4.08% | -7.72% | 247.15% | |
70 Outperform | $3.18B | 32.03 | 5.62% | 1.55% | -0.09% | -37.60% | |
70 Neutral | $5.02B | 37.26 | 12.18% | 1.39% | 4.95% | 53.63% | |
61 Neutral | $2.06B | 110.00 | 1.55% | 1.96% | -5.45% | -87.13% | |
61 Neutral | $10.10B | 6.09 | 1.13% | 3.02% | 2.99% | -45.49% | |
58 Neutral | $2.44B | 41.89 | -0.69% | 3.76% | 1.49% | -105.20% | |
49 Neutral | $2.46B | 21.03 | -34.43% | 3.05% | -11.38% | -690.99% |
* Basic Materials Sector Average
Performance Comparison
JMPLY
Johnson Matthey
49.78
10.24
25.90%
ASH
Ashland
53.53
-31.06
-36.72%
FUL
H.B. Fuller Company
58.98
-20.85
-26.12%
IOSP
Innospec
83.30
-25.47
-23.42%
OLN
Olin
21.28
-20.90
-49.55%
SXT
Sensient Technologies
116.19
43.80
60.51%
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.