LSE:JMAT

Stock Analysis Report

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Market Cap

UK£5.9b

Last Updated

2021/07/25 19:30 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

-1.4%

JMAT

0.7%

GB Chemicals

0.6%

GB Market


1 Year Return

34.3%

JMAT

39.3%

GB Chemicals

18.9%

GB Market

Return vs Industry: JMAT underperformed the UK Chemicals industry which returned 39.3% over the past year.

Return vs Market: JMAT exceeded the UK Market which returned 18.9% over the past year.


Shareholder returns

JMATIndustryMarket
7 Day-1.4%0.7%0.6%
30 Day-0.2%3.9%-0.4%
90 Day-6.7%5.0%1.4%
1 Year37.7%34.3%41.8%39.3%24.3%18.9%
3 Year-11.5%-17.9%12.6%2.9%12.1%-0.7%
5 Year6.2%-6.1%60.4%36.1%40.9%13.7%

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

Valuation

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

11.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JMAT (£30.76) is trading below our estimate of fair value (£34.78)

Significantly Below Fair Value: JMAT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JMAT is good value based on its PE Ratio (28.9x) compared to the UK Chemicals industry average (35.9x).

PE vs Market: JMAT is poor value based on its PE Ratio (28.9x) compared to the UK market (23.7x).


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 (3.5x).


Future Growth

How is Johnson Matthey forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JMAT's forecast earnings growth (18.1% per year) is above the savings rate (0.9%).

Earnings vs Market: JMAT's earnings (18.1% per year) are forecast to grow faster than the UK market (16.8% 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 (-42.1% per year).

High Growth Revenue: JMAT's revenue is forecast to decline over the next 3 years (-42.1% 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 (14.4%).


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?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JMAT's dividend (2.28%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: JMAT's dividend (2.28%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


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 (30.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Robert MacLeod (57 yo)

7.08yrs

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 ($USD3.48M) is above average for companies of similar size in the UK market ($USD2.20M).

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 ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: JMAT's board of directors are not considered experienced ( 2.3 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£5.926b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 19:30
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.