Johnson Matthey (JMPLY) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: 6.23%
• Average Volume (3M): 2.73K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.73
• Revenue Growth: -12.54%
• EPS Growth: 215.95%
• Country: US
• Employees: 11,685
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 2.47
• Shares Outstanding: 83,919,395
• 10 Day Avg. Volume: 1,191
• 30 Day Avg. Volume: 2,731
• PEG Ratio: -2.85
• Price to Book (P/B): 4.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Johnson Matthey's overall score reflects a combination of strong valuation metrics and robust financial management, particularly in cash flow. However, challenges in revenue growth and operating margins weigh on its financial performance. The technical outlook is neutral, with potential risks highlighted by market momentum indicators. The earnings call suggests strategic progress but also highlights sector-specific challenges that need to be addressed.

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 makes money by leveraging its expertise in chemistry and materials science to create high-performance products that meet the needs of its diverse customer base. The company's key revenue streams include the sale of catalytic converters for automotive emission control, which is a critical component in meeting stringent environmental regulations. Additionally, Johnson Matthey generates income through its advanced materials division, producing specialized chemicals and materials for industries like pharmaceuticals and energy. The company also engages in strategic partnerships and collaborations to drive innovation and expand its market reach, further contributing to its earnings.

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.

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.

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.

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
	EBIT
249.00M	505.00M	503.00M	488.00M	526.00M
	EBITDA
488.00M	621.00M	467.00M	564.00M	673.00M
	Net Income Common Stockholders
108.00M	276.00M	-101.00M	205.00M	255.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
542.00M	697.00M	418.00M	625.00M	332.00M
	Total Assets
6.34B	7.03B	6.67B	7.74B	7.36B
	Total Debt
1.49B	1.67B	1.25B	1.38B	1.43B
	Net Debt
948.00M	1.02B	860.00M	795.00M	1.13B
	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

• Technical Analysis Sentiment: Positive
• Last Price: 47.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 47.37 is above the 20-day moving average (MA) of 43.89, above the 50-day MA of 36.94, and above the 200-day MA of 36.11, indicating a bullish trend. The MACD of 2.96 indicates Positive momentum. The RSI at 74.89 is Negative, neither overbought nor oversold. The STOCH value of 84.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	74 Outperform	$4.02B	31.37	11.87%	1.73%	6.30%	41.01%
JMPLY	72 Outperform	$3.86B	8.76	16.05%	6.23%	-12.54%	215.95%
FUL	66 Neutral	$2.93B	27.28	6.35%	1.74%	0.99%	-27.62%
IOSP	63 Neutral	$2.12B	80.07	2.21%	1.98%	-7.91%	-81.73%
OLN	61 Neutral	$2.35B	40.16	2.94%	3.92%	-1.13%	-81.74%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
ASH	48 Neutral	$2.27B	21.03	-3.02%	3.35%	-7.63%	-157.37%