Johnson Matthey
Market Cap
UK£6.0b
Last Updated
2021/06/24 21:16 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
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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: JMAT's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.3%
JMAT
-0.9%
GB Chemicals
-0.7%
GB Market
1 Year Return
50.0%
JMAT
46.6%
GB Chemicals
19.3%
GB Market
Return vs Industry: JMAT exceeded the UK Chemicals industry which returned 46.6% over the past year.
Return vs Market: JMAT exceeded the UK Market which returned 19.3% over the past year.
Shareholder returns
| JMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | -0.9% | -0.7% |
| 30 Day | -2.6% | 1.9% | 0.4% |
| 90 Day | 2.2% | 10.0% | 6.0% |
| 1 Year | 53.7%50.0% | 49.2%46.6% | 25.0%19.3% |
| 3 Year | -6.5%-13.4% | 12.6%2.4% | 14.1%1.0% |
| 5 Year | 25.1%10.6% | 69.9%44.0% | 46.8%19.1% |
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
5 days ago | Simply Wall St
Investors Met With Slowing Returns on Capital At Johnson Matthey (LON:JMAT)2 weeks ago | Simply Wall St
Three Days Left To Buy Johnson Matthey Plc (LON:JMAT) Before The Ex-Dividend Date3 weeks ago | Simply Wall St
Johnson Matthey (LON:JMAT) Has Announced That It Will Be Increasing Its Dividend To UK£0.50Valuation
Is Johnson Matthey undervalued compared to its fair value and its price relative to the market?
29.12x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: JMAT (£30.98) is trading above our estimate of fair value (£28.79)
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 (29.1x) compared to the UK Chemicals industry average (41x).
PE vs Market: JMAT is poor value based on its PE Ratio (29.1x) compared to the UK market (25.2x).
Price to Earnings Growth Ratio
PEG Ratio: JMAT is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: JMAT is good value based on its PB Ratio (2.2x) compared to the GB Chemicals industry average (3.6x).
Future Growth
How is Johnson Matthey forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
18.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JMAT's forecast earnings growth (18.4% per year) is above the savings rate (0.9%).
Earnings vs Market: JMAT's earnings (18.4% per year) are forecast to grow faster than the UK market (17.4% 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 (-41.4% per year).
High Growth Revenue: JMAT's revenue is forecast to decline over the next 3 years (-41.4% 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 (14.1%).
Past Performance
How has Johnson Matthey performed over the past 5 years?
-8.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JMAT has a large one-off loss of £182.0M impacting its March 31 2021 financial results.
Growing Profit Margin: JMAT's current net profit margins (1.3%) are lower than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: JMAT's earnings have declined by 8.5% 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 (-19.6%) over the past year, making it difficult to compare to the Chemicals industry average (-11.3%).
Return on Equity
High ROE: JMAT's Return on Equity (7.6%) is considered low.
Financial Health
How is Johnson Matthey's financial position?
Financial Position Analysis
Short Term Liabilities: JMAT's short term assets (£4.9B) exceed its short term liabilities (£3.6B).
Long Term Liabilities: JMAT's short term assets (£4.9B) exceed its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: JMAT's debt to equity ratio (48.9%) is considered high.
Reducing Debt: JMAT's debt to equity ratio has reduced from 54.3% to 48.9% over the past 5 years.
Debt Coverage: JMAT's debt is well covered by operating cash flow (58.5%).
Interest Coverage: JMAT's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Dividend
What is Johnson Matthey current dividend yield, its reliability and sustainability?
2.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: JMAT's dividend (2.26%) is higher than the bottom 25% of dividend payers in the UK market (1.26%).
High Dividend: JMAT's dividend (2.26%) is low compared to the top 25% of dividend payers in the UK market (4.06%).
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 reasonable payout ratio (65.8%), JMAT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: JMAT's dividends in 3 years are forecast to be well covered by earnings (32.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Robert MacLeod (56 yo)
7yrs
Tenure
UK£2,532,000
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 ($USD3.52M) is above average for companies of similar size in the UK market ($USD2.22M).
Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: JMAT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
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£5.968b
- Shares outstanding: 192.64m
- 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
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 | 2021/06/24 21:16 |
| End of Day Share Price | 2021/06/24 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.