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Johnson Matthey (JMPLY)
:JMPLY
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Johnson Matthey
(OTC:JMPLY)
Rating:69Neutral
Price Target:
$54.00
â–²(8.22%Upside)
Johnson Matthey (JMPLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.06B
Dividend Yield0.09%
Average Volume (3M)1.13K
Price to Earnings (P/E)9.2
Beta (1Y)0.72
Revenue Growth-7.72%
EPS Growth247.15%
CountryUS
Employees11,685
SectorBasic Materials
Sector Strength72
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.47
Shares Outstanding83,919,395
10 Day Avg. Volume624
30 Day Avg. Volume1,126
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)1.37
Price to Sales (P/S)0.00
P/FCF Ratio47.18
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: 30.02%|
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'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
Neutral
49.90
Price Trends
46.67
Positive
40.08
Positive
37.51
Positive
Market Momentum
1.06
Positive
60.82
Neutral
29.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JMPLY, the sentiment is Neutral. The current price of 49.9 is below the 20-day moving average (MA) of 49.93, above the 50-day MA of 46.67, and above the 200-day MA of 37.51, indicating a neutral trend. The MACD of 1.06 indicates Positive momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JMPLY.
Johnson Matthey Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $2.11B | 79.70 | 2.21% | 1.93% | -7.91% | -81.73% | |
69 Neutral | $4.06B | 9.23 | 16.05% | 0.09% | -7.72% | 247.15% | |
69 Neutral | $4.79B | 35.61 | 12.18% | 1.45% | 4.95% | 53.63% | |
68 Neutral | $3.21B | 32.35 | 5.62% | 1.52% | -0.09% | -37.60% | |
63 Neutral | $10.39B | 9.59 | 1.51% | 2.85% | 2.29% | -34.63% | |
61 Neutral | $2.40B | 41.89 | -0.69% | 3.84% | 1.49% | -105.20% | |
46 Neutral | $2.33B | 21.03 | -3.02% | 3.20% | -7.63% | -157.37% |
* Basic Materials Sector Average
Performance Comparison
JMPLY
Johnson Matthey
49.90
9.79
24.41%
ASH
Ashland
50.95
-42.60
-45.54%
FUL
H.B. Fuller Company
58.52
-25.82
-30.61%
IOSP
Innospec
83.22
-44.11
-34.64%
OLN
Olin
20.83
-22.58
-52.02%
SXT
Sensient Technologies
112.93
36.24
47.26%
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.