Johnson Matthey
Market Cap
UK£5.4b
Last Updated
2020/01/22 20:40 UTC
Data Sources
Company Financials +
Executive Summary
Johnson Matthey Plc provides specialty chemicals in North America, Europe, China, rest of Asia, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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
-3.4%
JMAT
-0.7%
GB Chemicals
-0.5%
GB Market
1 Year Return
-6.9%
JMAT
-8.5%
GB Chemicals
12.4%
GB Market
Return vs Industry: JMAT exceeded the UK Chemicals industry which returned -8% over the past year.
Return vs Market: JMAT underperformed the UK Market which returned 12.7% over the past year.
Shareholder returns
| JMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -0.7% | -0.5% |
| 30 Day | -9.0% | -3.6% | 0.2% |
| 90 Day | -8.7% | 2.2% | 6.0% |
| 1 Year | -4.3%-6.9% | -4.8%-8.5% | 18.3%12.4% |
| 3 Year | -6.6%-13.6% | 7.4%-2.1% | 22.6%6.9% |
| 5 Year | -6.0%-21.8% | 19.1%-0.09% | 40.9%8.3% |
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
1 week ago | Simply Wall St
Do Johnson Matthey Plc’s (LON:JMAT) Returns On Capital Employed Make The Cut?2 weeks ago | Simply Wall St
Does Johnson Matthey Plc's (LON:JMAT) CEO Pay Reflect Performance?4 weeks ago | Simply Wall St
Should You Be Impressed By Johnson Matthey Plc's (LON:JMAT) ROE?Valuation
Is Johnson Matthey undervalued compared to its fair value and its price relative to the market?
13.99x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: JMAT (£29.31) is trading above our estimate of fair value (£24.29)
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 (14.6x) compared to the Chemicals industry average (22.7x).
PE vs Market: JMAT is good value based on its PE Ratio (14.6x) compared to the UK market (18.5x).
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 (2.1x) compared to the GB Chemicals industry average (2.2x).
Next Steps
Future Growth
How is Johnson Matthey forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JMAT's forecast earnings growth (9.3% per year) is above the savings rate (0.5%).
Earnings vs Market: JMAT's earnings (9.3% per year) are forecast to grow slower than the UK market (11.7% 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 (-2.7% per year).
High Growth Revenue: JMAT's revenue is forecast to decline over the next 3 years (-2.7% 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 (16.3%).
Next Steps
Past Performance
How has Johnson Matthey performed over the past 5 years?
-2.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JMAT has high quality earnings.
Growing Profit Margin: JMAT's current net profit margins (3.1%) are lower than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: JMAT's earnings have declined by -2.4% per year over the past 5 years.
Accelerating Growth: JMAT's earnings growth over the past year (15.6%) exceeds its 5-year average (-2.4% per year).
Earnings vs Industry: JMAT earnings growth over the past year (15.6%) exceeded the Chemicals industry -3.6%.
Return on Equity
High ROE: JMAT's Return on Equity (14.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Johnson Matthey's financial position?
Financial Position Analysis
Short Term Liabilities: JMAT's short term assets (£3.6B) exceed its short term liabilities (£2.3B).
Long Term Liabilities: JMAT's short term assets (£3.6B) exceed its long term liabilities (£1.4B).
Debt to Equity History and Analysis
Debt Level: JMAT's debt to equity ratio (56.4%) is considered high.
Reducing Debt: JMAT's debt to equity ratio has reduced from 59.4% to 56.4% over the past 5 years.
Debt Coverage: JMAT's debt is not well covered by operating cash flow (17.1%).
Interest Coverage: JMAT's interest payments on its debt are well covered by EBIT (9x coverage).
Balance Sheet
Inventory Level: JMAT has a high level of physical assets or inventory.
Debt Coverage by Assets: JMAT's debt is covered by short term assets (assets are 2.3x debt).
Next Steps
Dividend
What is Johnson Matthey's current dividend yield, its reliability and sustainability?
3.05%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: JMAT's dividend (2.92%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: JMAT's dividend (2.92%) is low compared to the top 25% of dividend payers in the UK market (4.95%).
Stability and Growth of Payments
Stable Dividend: JMAT's dividends per share have been stable 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 (43.3%), 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 (35.1% payout ratio).
Next Steps
Management
What is the CEO of Johnson Matthey's salary, the management and board of directors tenure and is there insider trading?
5.9yrs
Average management tenure
CEO
Robert MacLeod (55yo)
5.6yrs
Tenure
UK£2,784,000
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 ($USD3.62M) is about average for companies of similar size in the UK market ($USD3.42M).
Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.
Management Age and Tenure
5.9yrs
Average Tenure
52yo
Average Age
Experienced Management: JMAT's management team is seasoned and experienced (5.9 years average tenure).
Board Age and Tenure
3.1yrs
Average Tenure
59.5yo
Average Age
Experienced Board: JMAT's board of directors are considered experienced (3.1 years average tenure).
Insider Trading
Insider Buying: JMAT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 5,250 |
| Max Price | UK£28.42 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
M. Bedford
Managing Director of Precious Metals
Simon Farrant
General Counsel & Company Secretary
- Tenure: 13yrs
John Walker
Executive Director
- Tenure: 6.3yrs
- Compensation: UK£1.50m
Robert MacLeod (55yo)
CEO & Executive Director
- Tenure: 5.6yrs
- Compensation: UK£2.78m
A. Hurst
Managing Director of Tracerco - Environmental Technologies
G. McGregor
Managing Director of Oil & Gas
- Tenure: 9.2yrs
Anna Manz (46yo)
CFO & Executive Director
- Tenure: 3.3yrs
- Compensation: UK£1.63m
Annette Kelleher (52yo)
Chief Human Resource Officer
Sally Jones
Director of Corporate Communications
Alexandra French
Sales and Marketing Director
- Tenure: 4.3yrs
Board Members
John Walker
Executive Director
- Tenure: 6.3yrs
- Compensation: UK£1.50m
Patrick Thomas (62yo)
Chairman of the Board
- Tenure: 1.5yrs
- Compensation: UK£256.00k
Alan Ferguson (61yo)
Senior Independent Director
- Tenure: 5.5yrs
- Compensation: UK£93.00k
Chris Mottershead (63yo)
Non-Executive Director
- Tenure: 5yrs
- Compensation: UK£89.00k
Robert MacLeod (55yo)
CEO & Executive Director
- Tenure: 5.6yrs
- Compensation: UK£2.78m
Doug Webb (58yo)
Non-Executive Director
- Tenure: 0.3yrs
John O'Higgins (55yo)
Non-Executive Director
- Tenure: 2.2yrs
- Compensation: UK£65.00k
Xiaozhi Liu (63yo)
Non-Executive Director
- Tenure: 0.8yrs
Anna Manz (46yo)
CFO & Executive Director
- Tenure: 3.3yrs
- Compensation: UK£1.63m
Jane Griffiths
Non-Executive Director
- Tenure: 3yrs
- Compensation: UK£65.00k
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£5.382b
- Shares outstanding: 192.09m
- 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 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 solutions for generic and innovator 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/22 20:40 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.