Johnson Matthey
Market Cap
UK£5.9b
Last Updated
2021/03/01 18:32 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: JMAT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.03%
JMAT
-1.7%
GB Chemicals
-0.4%
GB Market
1 Year Return
27.9%
JMAT
29.4%
GB Chemicals
2.0%
GB Market
Return vs Industry: JMAT exceeded the UK Chemicals industry which returned 26.6% over the past year.
Return vs Market: JMAT exceeded the UK Market which returned 1.1% over the past year.
Shareholder returns
| JMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.03% | -1.7% | -0.4% |
| 30 Day | 7.2% | 2.9% | 3.3% |
| 90 Day | 38.6% | 13.8% | 4.9% |
| 1 Year | 30.9%27.9% | 31.5%29.4% | 8.0%2.0% |
| 3 Year | 11.3%3.2% | 9.6%-1.1% | 10.6%-2.6% |
| 5 Year | 37.3%21.2% | 44.3%22.0% | 38.7%12.1% |
Long-Term 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
2 days ago | Simply Wall St
What We Learned About Johnson Matthey's (LON:JMAT) CEO Pay2 weeks ago | Simply Wall St
Calculating The Intrinsic Value Of Johnson Matthey Plc (LON:JMAT)3 weeks ago | Simply Wall St
Is Now The Time To Look At Buying Johnson Matthey Plc (LON:JMAT)?Valuation
Is Johnson Matthey undervalued compared to its fair value and its price relative to the market?
59.19x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: JMAT (£31.65) is trading above our estimate of fair value (£30.27)
Significantly Below Fair Value: JMAT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: JMAT is poor value based on its PE Ratio (59.2x) compared to the GB Chemicals industry average (38.7x).
PE vs Market: JMAT is poor value based on its PE Ratio (59.2x) compared to the UK market (23.8x).
Price to Earnings Growth Ratio
PEG Ratio: JMAT is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: JMAT is good value based on its PB Ratio (2.3x) compared to the GB Chemicals industry average (3.1x).
Next Steps
Future Growth
How is Johnson Matthey forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
23.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JMAT's forecast earnings growth (23.8% per year) is above the savings rate (1%).
Earnings vs Market: JMAT's earnings (23.8% per year) are forecast to grow faster than the UK market (23.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: JMAT's revenue is expected to decline over the next 3 years (-0.8% per year).
High Growth Revenue: JMAT's revenue is forecast to decline over the next 3 years (-0.8% 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 (13.1%).
Next Steps
Past Performance
How has Johnson Matthey performed over the past 5 years?
-8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JMAT has a large one-off loss of £227.0M impacting its September 30 2020 financial results.
Growing Profit Margin: JMAT's current net profit margins (0.7%) are lower than last year (3%).
Past Earnings Growth Analysis
Earnings Trend: JMAT's earnings have declined by 8.8% 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 (-73.2%) over the past year, making it difficult to compare to the Chemicals industry average (-33%).
Return on Equity
High ROE: JMAT's Return on Equity (3.8%) 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 (£5.4B) exceed its short term liabilities (£4.2B).
Long Term Liabilities: JMAT's short term assets (£5.4B) exceed its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: JMAT's debt to equity ratio (60.1%) is considered high.
Reducing Debt: JMAT's debt to equity ratio has increased from 47.2% to 60.1% over the past 5 years.
Debt Coverage: JMAT's debt is well covered by operating cash flow (76.3%).
Interest Coverage: JMAT's interest payments on its debt are well covered by EBIT (4.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Johnson Matthey current dividend yield, its reliability and sustainability?
1.76%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: JMAT's dividend (1.76%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).
High Dividend: JMAT's dividend (1.76%) is low compared to the top 25% of dividend payers in the UK market (4.58%).
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 high payout ratio (95.6%), JMAT's dividend payments are not 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 (32.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Robert MacLeod (56 yo)
6.67yrs
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 ($USD2.04M) is about average for companies of similar size in the UK market ($USD2.77M).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.67yrs | UK£1.46m | 0.044% £ 2.6m | |
| Interim Chief Financial Officer | 0.25yr | no data | no data | |
| Chief Environment | 0.42yr | no data | no data | |
| Chief Technology Officer | 1.33yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 0.67yr | no data | no data | |
| Director of Corporate Communications | no data | no data | no data | |
| Sales and Marketing Director | 5.33yrs | no data | no data | |
| Chief Human Resource Officer | no data | no data | 0.013% £ 786.4k | |
| Managing Director of Precious Metals | no data | no data | no data | |
| Managing Director of Tracerco - Environmental Technologies | no data | no data | no data | |
| Managing Director of Oil & Gas | 10.25yrs | no data | no data |
1.3yrs
Average Tenure
56yo
Average Age
Experienced Management: JMAT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.67yrs | UK£1.46m | 0.044% £ 2.6m | |
| Chairman of the Board | 2.58yrs | UK£369.00k | 0.0043% £ 250.6k | |
| Independent Non-Executive Director | 1.42yrs | UK£39.00k | 0.0021% £ 122.3k | |
| Senior Independent Director | 0.58yr | UK£67.00k | 0.00078% £ 45.9k | |
| Independent Non-Executive Director | 1.83yrs | UK£64.00k | 0.0010% £ 61.2k | |
| Independent Non-Executive Director | 4.08yrs | UK£67.00k | 0.0014% £ 81.8k |
2.2yrs
Average Tenure
61yo
Average Age
Experienced Board: JMAT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
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.
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£5.882b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| JMPL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| JMT2 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| JMAT | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| JMATL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| JMAT N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jan 1992 |
| JMPL.Y | OTCPK (Pink Sheets LLC) | SPON ADR | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/01 18:32 |
| End of Day Share Price | 2021/03/01 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.