LSE:JMAT

Stock Analysis Report

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Executive Summary

Johnson Matthey Plc provides specialty chemicals in the United States, Germany, rest of Europe, the United States, rest of North America, China, rest of Asia, and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Johnson Matthey's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JMAT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

JMAT

0.4%

GB Chemicals

-1.9%

GB Market


1 Year Return

-20.6%

JMAT

1.1%

GB Chemicals

-14.5%

GB Market

Return vs Industry: JMAT underperformed the UK Chemicals industry which returned 2.1% over the past year.

Return vs Market: JMAT underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

JMATIndustryMarket
7 Day-1.4%0.4%-1.9%
30 Day-4.3%0.8%-1.7%
90 Day5.5%9.1%-4.4%
1 Year-18.8%-20.6%2.6%1.1%-11.3%-14.5%
3 Year-26.2%-31.4%-6.2%-13.9%-9.0%-20.3%
5 Year5.2%-12.5%15.3%-1.3%15.3%-10.6%

Price Volatility Vs. Market

How volatile is Johnson Matthey's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson Matthey undervalued compared to its fair value and its price relative to the market?

17.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JMAT (£23.81) is trading above our estimate of fair value (£20.84)

Significantly Below Fair Value: JMAT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JMAT is good value based on its PE Ratio (18x) compared to the GB Chemicals industry average (36.1x).

PE vs Market: JMAT is good value based on its PE Ratio (18x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: JMAT is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: JMAT is good value based on its PB Ratio (1.6x) compared to the GB Chemicals industry average (2.1x).


Next Steps

Future Growth

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

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JMAT's forecast earnings growth (16.3% per year) is above the savings rate (1.2%).

Earnings vs Market: JMAT's earnings (16.3% per year) are forecast to grow slower than the UK market (24.2% per year).

High Growth Earnings: JMAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: JMAT's revenue is expected to decline over the next 3 years (-30% per year).

High Growth Revenue: JMAT's revenue is forecast to decline over the next 3 years (-30% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JMAT's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Johnson Matthey performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JMAT has a large one-off loss of £149.0M impacting its March 31 2020 financial results.

Growing Profit Margin: JMAT's current net profit margins (1.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: JMAT's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: JMAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JMAT had negative earnings growth (-38.2%) over the past year, making it difficult to compare to the Chemicals industry average (-18.3%).


Return on Equity

High ROE: JMAT's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Johnson Matthey's financial position?


Financial Position Analysis

Short Term Liabilities: JMAT's short term assets (£4.3B) exceed its short term liabilities (£3.3B).

Long Term Liabilities: JMAT's short term assets (£4.3B) exceed its long term liabilities (£1.3B).


Debt to Equity History and Analysis

Debt Level: JMAT's debt to equity ratio (48%) is considered high.

Reducing Debt: JMAT's debt to equity ratio has reduced from 59.2% to 48% over the past 5 years.

Debt Coverage: JMAT's debt is well covered by operating cash flow (44.1%).

Interest Coverage: JMAT's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JMAT's dividend (2.34%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: JMAT's dividend (2.34%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: JMAT's dividend payments have been volatile in the past 10 years.

Growing Dividend: JMAT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42%), JMAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JMAT's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Robert MacLeod (56 yo)

6.33yrs

Tenure

UK£1,462,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.90M) is below average for companies of similar size in the UK market ($USD2.84M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert MacLeod
CEO & Executive Director6.33yrsUK£1.46m0.044%
£ 2.0m
Anna Manz
CFO & Executive Director4yrsUK£885.00k0.0056%
£ 254.9k
Ron Gerrard
Chief Environment0.083yrno datano data
Maurits van Tol
Chief Technology Officer1yrno datano data
Martin Dunwoodie
Director of Investor Relationsno datano datano data
Nick Cooper
General Counsel & Company Secretary0.33yrno datano data
Sally Jones
Director of Corporate Communicationsno datano datano data
Alexandra French
Sales and Marketing Director5yrsno datano data
Annette Kelleher
Chief Human Resource Officerno datano data0.013%
£ 610.1k
M. Bedford
Managing Director of Precious Metalsno datano datano data
A. Hurst
Managing Director of Tracerco - Environmental Technologiesno datano datano data
G. McGregor
Managing Director of Oil & Gas9.92yrsno datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: JMAT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert MacLeod
CEO & Executive Director6.33yrsUK£1.46m0.044%
£ 2.0m
Anna Manz
CFO & Executive Director4yrsUK£885.00k0.0056%
£ 254.9k
Patrick Thomas
Chairman of the Board2.25yrsUK£369.00k0.0043%
£ 195.3k
Christopher Mottershead
Independent Non-Executive Director5.75yrsUK£84.00k0.0015%
£ 66.9k
Doug Webb
Independent Non-Executive Director1.08yrsUK£39.00k0.0021%
£ 95.3k
John O'Higgins
Senior Independent Director2.92yrsUK£67.00k0.00078%
£ 35.8k
Xiaozhi Liu
Independent Non-Executive Director1.5yrsUK£64.00k0.0010%
£ 47.7k
Jane Griffiths
Independent Non-Executive Director3.75yrsUK£67.00k0.0014%
£ 63.7k

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: JMAT's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Johnson Matthey Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson Matthey Plc
  • Ticker: JMAT
  • Exchange: LSE
  • Founded: 1817
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: UK£4.584b
  • Shares outstanding: 192.52m
  • Website: https://www.matthey.com

Number of Employees


Location

  • Johnson Matthey Plc
  • 25 Farringdon Street
  • 5th Floor
  • London
  • Greater London
  • EC4A 4AB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JMPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
JMT2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
JMATLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
JMATLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
JMAT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
JMPL.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDDec 1998

Biography

Johnson Matthey Plc provides specialty chemicals in the United States, Germany, rest of Europe, the United States, rest of North America, China, rest of Asia, and internationally. It operates through four ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:21
End of Day Share Price2020/10/19 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.