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Johnson Matthey

LSE:JMAT
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JMAT
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Johnson Matthey Plc provides specialty chemicals in North America, Europe, China, rest of Asia, and internationally. The last earnings update was 119 days ago. More info.


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JMAT Share Price and Events
7 Day Returns
2.7%
LSE:JMAT
2.7%
GB Chemicals
32.1%
GB Market
1 Year Returns
1.5%
LSE:JMAT
-7.7%
GB Chemicals
30.9%
GB Market
JMAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Johnson Matthey (JMAT) 2.7% 3.3% 17% 1.5% 18.9% -6%
GB Chemicals 2.7% -1.9% 6% -7.7% 17.7% 11.5%
GB Market 32.1% 31.6% 40.2% 30.9% 48.1% 12.2%
1 Year Return vs Industry and Market
  • JMAT outperformed the Chemicals industry which returned -7.7% over the past year.
  • JMAT underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 30.9% over the past year.
Price Volatility
JMAT
Industry
5yr Volatility vs Market

JMAT Value

 Is Johnson Matthey undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Johnson Matthey to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Johnson Matthey.

LSE:JMAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:JMAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 19%) (19.16%))
1.084
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.084 * 6.65%)
8.43%

Discounted Cash Flow Calculation for LSE:JMAT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Johnson Matthey is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:JMAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.43%)
2019 157.96 Analyst x2 145.67
2020 289.73 Analyst x10 246.41
2021 283.14 Analyst x7 222.07
2022 356.43 Analyst x3 257.81
2023 297.50 Analyst x1 198.45
2024 261.03 Est @ -12.26% 160.58
2025 239.60 Est @ -8.21% 135.92
2026 226.71 Est @ -5.38% 118.61
2027 219.00 Est @ -3.4% 105.66
2028 214.60 Est @ -2.01% 95.49
Present value of next 10 years cash flows £1,686.67
LSE:JMAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £214.60 × (1 + 1.23%) ÷ (8.43% – 1.23%)
£3,013.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,013.80 ÷ (1 + 8.43%)10
£1,340.98
LSE:JMAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,686.67 + £1,340.98
£3,027.65
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,027.65 / 191.97
£15.77
LSE:JMAT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £15.77
Current discount Discount to share price of £32.17
= -1 x (£32.17 - £15.77) / £15.77
-104%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Johnson Matthey is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Johnson Matthey's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Johnson Matthey's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:JMAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £1.73
LSE:JMAT Share Price ** LSE (2019-03-20) in GBP £32.17
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PE Ratio Median Figure of 12 Publicly-Listed Chemicals Companies 24.88x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 16.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Johnson Matthey.

LSE:JMAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:JMAT Share Price ÷ EPS (both in GBP)

= 32.17 ÷ 1.73

18.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is good value based on earnings compared to the GB Chemicals industry average.
  • Johnson Matthey is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Johnson Matthey's expected growth come at a high price?
Raw Data
LSE:JMAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
9%per year
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PEG Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 1.92x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:JMAT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.56x ÷ 9%

2.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Johnson Matthey's assets?
Raw Data
LSE:JMAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £13.33
LSE:JMAT Share Price * LSE (2019-03-20) in GBP £32.17
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PB Ratio Median Figure of 25 Publicly-Listed Chemicals Companies 2.43x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.53x
LSE:JMAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:JMAT Share Price ÷ Book Value per Share (both in GBP)

= 32.17 ÷ 13.33

2.41x

* Primary Listing of Johnson Matthey.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is good value based on assets compared to the GB Chemicals industry average.
X
Value checks
We assess Johnson Matthey's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Johnson Matthey has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JMAT Future Performance

 How is Johnson Matthey expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Johnson Matthey expected to grow at an attractive rate?
  • Johnson Matthey's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Johnson Matthey's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Johnson Matthey's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:JMAT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:JMAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 9%
LSE:JMAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts -1.2%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 7.7%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 6.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:JMAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:JMAT Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 5,453 811 641 2
2022-03-31 4,837 758 540 4
2021-03-31 4,539 645 476 10
2020-03-31 4,332 673 441 12
2019-03-31 4,154 393 422 12
LSE:JMAT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 14,752 290 333
2018-06-30 14,437 338 316
2018-03-31 14,122 386 298
2017-12-31 13,503 397 338
2017-09-30 12,884 407 377
2017-06-30 12,458 465 382
2017-03-31 12,031 523 386
2016-12-31 11,307 484 308
2016-09-30 10,584 445 231
2016-06-30 10,649 656 282
2016-03-31 10,714 867 333
2015-12-31 10,864 687 434

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Johnson Matthey's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • Johnson Matthey's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:JMAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Johnson Matthey Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JMAT Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 3.33 3.33 3.33 1.00
2022-03-31 2.81 2.93 2.68 2.00
2021-03-31 2.43 2.59 2.16 7.00
2020-03-31 2.31 2.57 2.13 9.00
2019-03-31 2.20 2.28 2.13 10.00
LSE:JMAT Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 1.73
2018-06-30 1.64
2018-03-31 1.55
2017-12-31 1.76
2017-09-30 1.97
2017-06-30 1.99
2017-03-31 2.01
2016-12-31 1.57
2016-09-30 1.15
2016-06-30 1.41
2016-03-31 1.66
2015-12-31 2.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Johnson Matthey is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Johnson Matthey's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Johnson Matthey has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JMAT Past Performance

  How has Johnson Matthey performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Johnson Matthey's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Johnson Matthey's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Johnson Matthey's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Johnson Matthey's 1-year earnings growth is negative, it can't be compared to the GB Chemicals industry average.
Earnings and Revenue History
Johnson Matthey's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Johnson Matthey Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JMAT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 14,752.00 333.00 404.00
2018-06-30 14,437.00 315.50 394.00
2018-03-31 14,122.00 298.00 384.00
2017-12-31 13,502.90 337.80 378.10
2017-09-30 12,884.10 377.30 372.10
2017-06-30 12,457.55 381.65 360.55
2017-03-31 12,031.00 386.00 349.00
2016-12-31 11,307.35 308.40 326.50
2016-09-30 10,583.70 230.80 304.00
2016-06-30 10,648.80 281.95 313.30
2016-03-31 10,713.90 333.10 322.60
2015-12-31 10,864.40 434.05 343.30
2015-09-30 11,014.90 535.00 364.00
2015-06-30 10,537.30 481.85 355.95
2015-03-31 10,059.70 428.70 347.90
2014-12-31 9,802.15 384.15 343.00
2014-09-30 9,544.60 339.60 338.10
2014-06-30 10,349.90 339.90 338.55
2014-03-31 11,155.20 340.20 339.00
2013-12-31 11,701.15 321.20 331.30
2013-09-30 12,247.10 302.20 323.60
2013-06-30 11,487.95 287.00 309.55
2013-03-31 10,728.80 271.80 295.50
2012-12-31 10,872.00 292.25 291.35
2012-09-30 11,015.20 310.40 295.10
2012-06-30 11,519.20 313.15 297.55
2012-03-31 12,023.20 315.90 300.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Johnson Matthey has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Johnson Matthey used its assets more efficiently than the GB Chemicals industry average last year based on Return on Assets.
  • Johnson Matthey's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Johnson Matthey's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Johnson Matthey has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JMAT Health

 How is Johnson Matthey's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Johnson Matthey's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Johnson Matthey is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Johnson Matthey's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Johnson Matthey's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Johnson Matthey Company Filings, last reported 5 months ago.

LSE:JMAT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 2,561.00 1,183.00 141.00
2018-06-30 2,561.00 1,183.00 141.00
2018-03-31 2,378.00 1,014.00 338.00
2017-12-31 2,378.00 1,014.00 338.00
2017-09-30 2,233.70 1,032.90 132.90
2017-06-30 2,233.70 1,032.90 132.90
2017-03-31 2,217.00 1,063.00 334.00
2016-12-31 2,217.00 1,063.00 334.00
2016-09-30 1,825.00 1,087.80 173.80
2016-06-30 1,825.00 1,087.80 173.80
2016-03-31 1,834.60 995.10 311.70
2015-12-31 1,834.60 995.10 311.70
2015-09-30 1,996.50 939.60 481.20
2015-06-30 1,996.50 939.60 481.20
2015-03-31 1,800.10 1,072.80 61.70
2014-12-31 1,800.10 1,072.80 61.70
2014-09-30 1,595.70 948.20 145.00
2014-06-30 1,595.70 948.20 145.00
2014-03-31 1,553.20 967.10 227.80
2013-12-31 1,553.20 967.10 227.80
2013-09-30 1,421.40 1,074.00 262.60
2013-06-30 1,421.40 1,074.00 262.60
2013-03-31 1,390.90 932.30 73.30
2012-12-31 1,392.50 932.30 73.70
2012-09-30 1,345.20 806.20 95.50
2012-06-30 1,345.20 806.20 95.50
2012-03-31 1,531.80 622.60 142.20
  • Johnson Matthey's level of debt (46.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (75.4% vs 46.2% today).
  • Debt is well covered by operating cash flow (24.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).
X
Financial health checks
We assess Johnson Matthey's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Johnson Matthey has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JMAT Dividends

 What is Johnson Matthey's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.49%
Current annual income from Johnson Matthey dividends. Estimated to be 2.81% next year.
If you bought £2,000 of Johnson Matthey shares you are expected to receive £50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Johnson Matthey's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Johnson Matthey's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:JMAT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:JMAT Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 1.08 1.00
2022-03-31 1.07 2.00
2021-03-31 0.96 14.00
2020-03-31 0.89 18.00
2019-03-31 0.85 19.00
LSE:JMAT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-07-26 0.800 2.550
2017-06-20 0.750 2.350
2016-07-20 0.726 2.295
2016-06-16 0.715 2.413
2016-06-02 0.715 2.417
2015-06-17 0.720 2.610
2015-06-04 0.720 2.135
2014-11-20 0.678 1.889
2014-06-19 0.662 2.068
2014-06-05 0.662 1.950
2013-06-06 0.604 1.878
2012-11-21 0.610 2.424
2012-06-21 0.610 2.486
2012-06-07 0.610 2.416
2011-11-23 0.538 2.274
2011-06-02 0.510 2.543
2011-06-01 0.510 2.248
2010-06-15 0.433 2.131
2010-06-03 0.433 2.565
2009-06-04 0.412 2.526
2009-03-31 0.412 3.083
2009-03-23 0.412 3.440

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Johnson Matthey's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Johnson Matthey's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Johnson Matthey afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Johnson Matthey has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JMAT Management

 What is the CEO of Johnson Matthey's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert MacLeod
COMPENSATION £2,013,000
AGE 54
TENURE AS CEO 4.8 years
CEO Bio

Mr. Robert J. MacLeod has been the Chief Executive of Johnson Matthey Plc since June 5, 2014 and its Executive Director since June 22, 2014. Mr. MacLeod joined Johnson Matthey plc in 2009 and served as its Group Finance Director from June 22, 2009 to June 5, 2014. He has considerable international experience in the engineering and chemicals sectors. He served as the Finance Director of WS Atkins plc from June 2004 to June 19, 2009 and its Group Financial Controller from March 2003 to June 19, 2009. He joined WS Atkins in the Spring of 2003. He held a variety of senior finance and M&A roles with Enterprise Oil plc in the UK and US. He has been a Non-Executive Director of RELX NV and RELX PLC since April 20, 2016 and RELX Group plc since April 21, 2016. He served as a Non-Executive Director of Aggreko plc from September 2007 to April 28, 2016 and WS Atkins Plc from July 23, 2004 June 19, 2009. He was Chartered Accountant trained at KPMG. After starting his career with KPMG, from 1993 to 2002, he held a variety of senior finance and M&A roles with Enterprise Oil plc in the UK and US. Mr. MacLeod is a Cambridge graduate.

CEO Compensation
  • Robert's compensation has been consistent with company performance over the past year.
  • Robert's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Johnson Matthey management team in years:

3.8
Average Tenure
51
Average Age
  • The tenure for the Johnson Matthey management team is about average.
Management Team

Robert MacLeod

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
54
TENURE
4.8 yrs

Anna Manz

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
45
TENURE
2.4 yrs

John Walker

TITLE
Sector Chief Executive of Clean Air & Executive Director
COMPENSATION
£1M
TENURE
5.4 yrs

Alan Nelson

TITLE
CTO & Sector Chief Executive of New Markets
TENURE
3.8 yrs

Simon Farrant

TITLE
General Counsel & Company Secretary
TENURE
12.2 yrs

Sally Jones

TITLE
Director of Corporate Communications

Alexandra French

TITLE
Sales and Marketing Director
TENURE
3.4 yrs

Matt Barton

TITLE
Chief Strategy & Corporate Development Officer
TENURE
1.6 yrs

Annette Kelleher

TITLE
Chief Human Resource Officer
AGE
51

M. Bedford

TITLE
Managing Director of Precious Metals
Board of Directors Tenure

Average tenure and age of the Johnson Matthey board of directors in years:

4.2
Average Tenure
60
Average Age
  • The tenure for the Johnson Matthey board of directors is about average.
Board of Directors

Patrick Thomas

TITLE
Chairman of the Board
AGE
61
TENURE
0.7 yrs

Robert MacLeod

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
54
TENURE
9.8 yrs

Anna Manz

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
45
TENURE
2.4 yrs

John Walker

TITLE
Sector Chief Executive of Clean Air & Executive Director
COMPENSATION
£1M
TENURE
5.4 yrs

Alan Ferguson

TITLE
Senior Independent Director
COMPENSATION
£83K
AGE
60
TENURE
4.7 yrs

Chris Mottershead

TITLE
Non-Executive Director
COMPENSATION
£71K
AGE
62
TENURE
4.2 yrs

Odile Desforges

TITLE
Non Executive Director
COMPENSATION
£64K
AGE
68
TENURE
5.7 yrs

Jane Griffiths

TITLE
Non-Executive Director
COMPENSATION
£64K
TENURE
2.2 yrs

John O'Higgins

TITLE
Non-Executive Director
COMPENSATION
£24K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
11. Dec 18 Buy Christopher Mottershead Individual 11. Dec 18 11. Dec 18 941 £26.05 £24,513
X
Management checks
We assess Johnson Matthey's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Johnson Matthey has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JMAT News

Simply Wall St News

At UK£31.44, Is It Time To Put Johnson Matthey Plc (LON:JMAT) On Your Watch List?

Johnson Matthey Plc (LON:JMAT), which is in the chemicals business, and is based in United Kingdom,. … saw a significant share price rise of over 20% in the past couple of months on the LSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

Johnson Matthey Shareholders Booked A 21% Gain In The Last Three Years

For example, the Johnson Matthey Plc (LON:JMAT) share price is up 21% in the last three years, clearly besting than the market return of around 15% (not including dividends). … During the three years of share price growth, Johnson Matthey actually saw its earnings per share (EPS) drop 15% per year. … It may well be that Johnson Matthey revenue growth rate of 12% over three years has convinced shareholders to believe in a brighter future.

Simply Wall St -

Is Johnson Matthey Plc's (LON:JMAT) CEO Pay Fair?

Robert MacLeod became the CEO of Johnson Matthey Plc (LON:JMAT) in 2014. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Robert MacLeod's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Does Johnson Matthey Plc’s (LON:JMAT) 14% ROCE Say About The Business?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

Should You Be Holding Johnson Matthey Plc (LON:JMAT)?

Johnson Matthey Plc (LON:JMAT) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … If you're interested in understanding beyond my broad commentary,

Simply Wall St -

Here's What Johnson Matthey Plc's (LON:JMAT) P/E Ratio Is Telling Us

We'll show how you can use Johnson Matthey Plc's (LON:JMAT) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Johnson Matthey's P/E ratio is 16.7. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Johnson Matthey Plc (LON:JMAT): Does The Earnings Decline Make It An Underperformer?

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. … JMAT's trailing twelve-month earnings (from 30 September 2018) of UK£333m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -1.9%, indicating the rate at which JMAT is growing has slowed down

Simply Wall St -

Taking A Look At Johnson Matthey Plc's (LON:JMAT) ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding Johnson Matthey Plc (LON:JMAT). … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Johnson Matthey Plc (LON:JMAT): Ex-Dividend Is In 4 Days

Have you been keeping an eye on Johnson Matthey Plc's (LON:JMAT) upcoming dividend of UK£0.23 per share payable on the 05 February 2019? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Relative Or Intrinsic Valuation? An Overview of Johnson Matthey Plc's (LON:JMAT) True Value

With so many different financial models generating different conclusions, choosing the most relevant one to value a company can be daunting. … For example, my discounted cash flow (DCF) model tells me that Johnson Matthey Plc's (LON:JMAT) is overvalued by 28.85%, but my relative valuation tells me it’s undervalued by 43.78%. … Which model do I listen to and more importantly why?

Simply Wall St -

JMAT Company Info

Description

Johnson Matthey Plc provides specialty chemicals in North America, Europe, China, rest of Asia, and internationally. It operates through Clean Air, Efficient Natural Resources, Health, and New Markets segments. The Clean Air segment provides catalysts for gasoline and diesel light duty vehicles; and catalyst systems for diesel powered trucks, buses, and stationary equipment. This segment serves car companies, heavy duty truck and engine manufacturers, Chinese producers, and others. The Efficient Natural Resources segment manufactures specialty catalysts and additives, as well as licenses process technology and delivers services to the oil and gas industry; refines, recycles, markets, and distributes platinum group metals (pgms); fabricates products using precious metals and related materials; provides pgm chemicals, and precious metal pastes and enamels. This segment serves chemical, oil, and gas companies; engineering contractors; industrial pgm users; end of life auto catalyst collectors; and automotive industry suppliers. The Health segment develops and manufactures active pharmaceutical ingredients for various treatments; provides complex chemistry solutions for pharmaceutical companies; and operates in the outsourced small molecule API market. The New Markets segment offers battery materials, battery systems, and fuel cell technologies; and provides science and technology to develop the products for devices used in medical procedures, as well as offers catalysts and processes to pharmaceutical and agricultural chemicals markets. This segment serves automotive and heavy duty vehicle companies; lithium ion cell manufacturers; fuel cell manufacturers; cordless tool and transport manufacturers; medical device companies; and pharmaceutical, fine chemical, and agrochemical companies. 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.

Details
Name: Johnson Matthey Plc
JMAT
Exchange: LSE
Founded: 1817
£6,175,778,037
191,973,206
Website: http://www.matthey.com
Address: Johnson Matthey Plc
25 Farringdon Street,
5th Floor,
London,
Greater London, EC4A 4AB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE JMAT Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK JMPL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB JMT2 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV JMAT N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE JMATL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK JMPL.Y SPON ADR Pink Sheets LLC US USD 31. Dec 1998
Number of employees
Current staff
Staff numbers
12,348
Johnson Matthey employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:39
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2018/11/21
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.