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Johnson Matthey

LSE:JMAT
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JMAT
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Johnson Matthey Plc provides specialty chemicals in North America, Europe, China, rest of Asia, and internationally. The last earnings update was 31 days ago. More info.


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JMAT Share Price and Events
7 Day Returns
-0.1%
LSE:JMAT
-0.9%
GB Chemicals
-0.6%
GB Market
1 Year Returns
-9.5%
LSE:JMAT
-20.6%
GB Chemicals
-2.2%
GB Market
JMAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Johnson Matthey (JMAT) -0.1% 7.7% -2% -9.5% 5.1% 4.1%
GB Chemicals -0.9% -1.3% -9.6% -20.6% 6.7% 16.7%
GB Market -0.6% 1.4% 0.4% -2.2% 11.5% 6.7%
1 Year Return vs Industry and Market
  • JMAT outperformed the Chemicals industry which returned -20.6% over the past year.
  • JMAT underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
JMAT
Industry
5yr Volatility vs Market

JMAT Value

 Is Johnson Matthey undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Johnson Matthey to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Johnson Matthey.

LSE:JMAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:JMAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.89 (1 + (1- 19%) (20.57%))
1.025
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.025 * 6.65%)
8.05%

Discounted Cash Flow Calculation for LSE:JMAT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Johnson Matthey is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:JMAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.05%)
2020 249.43 Analyst x7 230.85
2021 301.75 Analyst x4 258.48
2022 289.25 Analyst x6 229.32
2023 312.50 Analyst x2 229.30
2024 316.00 Analyst x2 214.60
2025 319.62 Est @ 1.15% 200.90
2026 323.36 Est @ 1.17% 188.11
2027 327.20 Est @ 1.19% 176.17
2028 331.13 Est @ 1.2% 165.00
2029 335.12 Est @ 1.21% 154.56
Present value of next 10 years cash flows £2,047.30
LSE:JMAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £335.12 × (1 + 1.23%) ÷ (8.05% – 1.23%)
£4,974.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,974.50 ÷ (1 + 8.05%)10
£2,294.26
LSE:JMAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,047.30 + £2,294.26
£4,341.56
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,341.56 / 192.09
£22.6
LSE:JMAT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £22.60
Current discount Discount to share price of £33.31
= -1 x (£33.31 - £22.60) / £22.60
-47.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Johnson Matthey is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Johnson Matthey's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Johnson Matthey's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:JMAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £2.15
LSE:JMAT Share Price ** LSE (2019-07-15) in GBP £33.31
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PE Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 25.78x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.48x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Johnson Matthey.

LSE:JMAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:JMAT Share Price ÷ EPS (both in GBP)

= 33.31 ÷ 2.15

15.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is good value based on earnings compared to the GB Chemicals industry average.
  • Johnson Matthey is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Johnson Matthey's expected growth come at a high price?
Raw Data
LSE:JMAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
7.4%per year
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PEG Ratio Median Figure of 10 Publicly-Listed Chemicals Companies 1.8x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:JMAT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.5x ÷ 7.4%

2.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Johnson Matthey's assets?
Raw Data
LSE:JMAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £13.59
LSE:JMAT Share Price * LSE (2019-07-15) in GBP £33.31
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PB Ratio Median Figure of 26 Publicly-Listed Chemicals Companies 2.16x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:JMAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:JMAT Share Price ÷ Book Value per Share (both in GBP)

= 33.31 ÷ 13.59

2.45x

* Primary Listing of Johnson Matthey.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Johnson Matthey is overvalued based on assets compared to the GB Chemicals industry average.
X
Value checks
We assess Johnson Matthey's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Johnson Matthey has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JMAT Future Performance

 How is Johnson Matthey expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Johnson Matthey expected to grow at an attractive rate?
  • Johnson Matthey's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Johnson Matthey's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Johnson Matthey's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:JMAT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:JMAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 7.4%
LSE:JMAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts -21.1%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average -4.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:JMAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:JMAT Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 5,171 828 646 2
2023-03-31 4,924 773 587 2
2022-03-31 4,812 682 509 11
2021-03-31 4,567 684 472 13
2020-03-31 4,402 719 439 14
LSE:JMAT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 10,745 334 413
2018-12-31 10,825 312 373
2018-09-30 14,752 290 333
2018-06-30 14,437 338 316
2018-03-31 10,274 386 298
2017-12-31 11,579 397 338
2017-09-30 12,884 407 377
2017-06-30 12,458 465 382
2017-03-31 12,031 523 386
2016-12-31 11,307 484 308
2016-09-30 10,584 445 231
2016-06-30 10,649 656 282

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Johnson Matthey's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Johnson Matthey's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:JMAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Johnson Matthey Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JMAT Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 3.36 3.36 3.36 1.00
2023-03-31 3.05 3.05 3.05 1.00
2022-03-31 2.69 2.89 2.43 8.00
2021-03-31 2.50 2.72 2.21 11.00
2020-03-31 2.33 2.52 2.19 12.00
LSE:JMAT Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 2.15
2018-12-31 1.94
2018-09-30 1.73
2018-06-30 1.64
2018-03-31 1.55
2017-12-31 1.76
2017-09-30 1.97
2017-06-30 1.99
2017-03-31 2.01
2016-12-31 1.57
2016-09-30 1.15
2016-06-30 1.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Johnson Matthey is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Johnson Matthey's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Johnson Matthey has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JMAT Past Performance

  How has Johnson Matthey performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Johnson Matthey's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Johnson Matthey's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Johnson Matthey's 1-year earnings growth exceeds its 5-year average (38.6% vs -2.4%)
  • Johnson Matthey's earnings growth has exceeded the GB Chemicals industry average in the past year (38.6% vs 1.2%).
Earnings and Revenue History
Johnson Matthey's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Johnson Matthey Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JMAT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 10,745.00 413.00 447.00
2018-12-31 10,824.50 373.00 425.50
2018-09-30 14,752.00 333.00 404.00
2018-06-30 14,437.00 315.50 394.00
2018-03-31 10,274.00 298.00 384.00
2017-12-31 11,579.05 337.65 378.05
2017-09-30 12,884.10 377.30 372.10
2017-06-30 12,457.55 381.65 360.55
2017-03-31 12,031.00 386.00 349.00
2016-12-31 11,307.35 308.40 326.50
2016-09-30 10,583.70 230.80 304.00
2016-06-30 10,648.80 281.95 313.30
2016-03-31 10,713.90 333.10 322.60
2015-12-31 10,864.40 434.05 343.30
2015-09-30 11,014.90 535.00 364.00
2015-06-30 10,537.30 481.85 355.95
2015-03-31 10,059.70 428.70 347.90
2014-12-31 9,802.15 384.15 343.00
2014-09-30 9,544.60 339.60 338.10
2014-06-30 10,349.90 339.90 338.55
2014-03-31 11,155.20 340.20 339.00
2013-12-31 11,701.15 321.20 331.30
2013-09-30 12,247.10 302.20 323.60
2013-06-30 11,487.95 287.00 309.55
2013-03-31 10,728.80 271.80 295.50
2012-12-31 10,872.00 292.25 291.35
2012-09-30 11,015.20 310.40 295.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Johnson Matthey has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Johnson Matthey used its assets more efficiently than the GB Chemicals industry average last year based on Return on Assets.
  • Johnson Matthey's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Johnson Matthey's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Johnson Matthey has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JMAT Health

 How is Johnson Matthey's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Johnson Matthey's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Johnson Matthey is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Johnson Matthey's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Johnson Matthey's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Johnson Matthey Company Filings, last reported 3 months ago.

LSE:JMAT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,611.00 1,316.00 459.00
2018-12-31 2,611.00 1,316.00 459.00
2018-09-30 2,561.00 1,183.00 141.00
2018-06-30 2,561.00 1,183.00 141.00
2018-03-31 2,379.00 1,059.00 389.00
2017-12-31 2,379.00 1,059.00 389.00
2017-09-30 2,233.70 1,032.90 132.90
2017-06-30 2,233.70 1,032.90 132.90
2017-03-31 2,217.00 1,063.00 334.00
2016-12-31 2,217.00 1,063.00 334.00
2016-09-30 1,825.00 1,087.80 173.80
2016-06-30 1,825.00 1,087.80 173.80
2016-03-31 1,834.60 994.50 311.70
2015-12-31 1,834.60 994.50 311.70
2015-09-30 1,996.50 939.60 481.20
2015-06-30 1,996.50 939.60 481.20
2015-03-31 1,800.10 1,071.80 61.70
2014-12-31 1,800.10 1,071.80 61.70
2014-09-30 1,595.70 948.20 145.00
2014-06-30 1,595.70 948.20 145.00
2014-03-31 1,553.20 965.70 227.80
2013-12-31 1,553.20 965.70 227.80
2013-09-30 1,421.40 1,074.00 262.60
2013-06-30 1,421.40 1,074.00 262.60
2013-03-31 1,390.90 930.50 73.30
2012-12-31 1,392.50 930.50 73.70
2012-09-30 1,345.20 806.20 95.50
  • Johnson Matthey's level of debt (50.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (62.2% vs 50.4% today).
  • Debt is well covered by operating cash flow (25.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
X
Financial health checks
We assess Johnson Matthey's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Johnson Matthey has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JMAT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.57%
Current annual income from Johnson Matthey dividends. Estimated to be 2.83% next year.
If you bought £2,000 of Johnson Matthey shares you are expected to receive £51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Johnson Matthey's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Johnson Matthey's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:JMAT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:JMAT Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 1.08 1.00
2023-03-31 1.03 1.00
2022-03-31 1.01 12.00
2021-03-31 0.94 16.00
2020-03-31 0.89 17.00
LSE:JMAT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-14 0.855 2.625
2019-05-30 0.855 2.732
2018-07-26 0.800 2.532
2017-06-20 0.750 2.350
2016-07-20 0.726 2.295
2016-06-16 0.715 2.413
2016-06-02 0.715 2.417
2015-06-17 0.720 2.610
2015-06-04 0.720 2.135
2014-11-20 0.678 1.889
2014-06-19 0.662 2.068
2014-06-05 0.662 1.950
2013-06-06 0.604 1.878
2012-11-21 0.610 2.424
2012-06-21 0.610 2.486
2012-06-07 0.610 2.416
2011-11-23 0.538 2.274
2011-06-02 0.510 2.543
2011-06-01 0.510 2.248
2010-06-15 0.433 2.131
2010-06-03 0.433 2.565
2009-06-04 0.412 2.526
2009-03-31 0.412 3.083
2008-11-26 0.412 3.724

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Johnson Matthey's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Johnson Matthey's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Johnson Matthey afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Johnson Matthey has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JMAT Management

 What is the CEO of Johnson Matthey's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert MacLeod
COMPENSATION £2,784,000
AGE 55
TENURE AS CEO 5.1 years
CEO Bio

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 Group Finance Director from June 22, 2009 to June 5, 2014. He has considerable international experience in the engineering and chemicals sectors. He served as the Finance Director of WS Atkins plc from June 2004 to June 19, 2009 and its Group Financial Controller from March 2003 to June 19, 2009. He joined WS Atkins in the Spring of 2003. He held a variety of senior finance and M&A roles with Enterprise Oil plc in the UK and US. He has been a Non-Executive Director of RELX NV and RELX PLC since April 20, 2016 and RELX Group plc since April 21, 2016. He served as a Non-Executive Director of Aggreko plc from September 2007 to April 28, 2016 and WS Atkins Plc from July 23, 2004 June 19, 2009. He was Chartered Accountant trained at KPMG. After starting his career with KPMG, from 1993 to 2002, he held a variety of senior finance and M&A roles with Enterprise Oil plc in the UK and US. Mr. MacLeod is a Cambridge graduate.

CEO Compensation
  • Robert's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Robert's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Johnson Matthey management team in years:

5.1
Average Tenure
52
Average Age
  • The average tenure for the Johnson Matthey management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Robert MacLeod

TITLE
COMPENSATION
£3M
AGE
55
TENURE
5.1 yrs

Anna Manz

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
2.8 yrs

John Walker

TITLE
Sector Chief Executive of Clean Air & Executive Director
COMPENSATION
£1M
TENURE
5.8 yrs

Simon Farrant

TITLE
General Counsel & Company Secretary
TENURE
12.5 yrs

Sally Jones

TITLE
Director of Corporate Communications

Alexandra French

TITLE
Sales and Marketing Director
TENURE
3.8 yrs

Annette Kelleher

TITLE
Chief Human Resource Officer
AGE
52

M. Bedford

TITLE
Managing Director of Precious Metals

A. Hurst

TITLE
Managing Director of Tracerco - Environmental Technologies
Board of Directors Tenure

Average tenure and age of the Johnson Matthey board of directors in years:

3.6
Average Tenure
61.5
Average Age
  • The tenure for the Johnson Matthey board of directors is about average.
Board of Directors

Patrick Thomas

TITLE
Chairman of the Board
COMPENSATION
£256K
AGE
62
TENURE
1 yrs

Robert MacLeod

TITLE
COMPENSATION
£3M
AGE
55
TENURE
10.1 yrs

Anna Manz

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
2.8 yrs

John Walker

TITLE
Sector Chief Executive of Clean Air & Executive Director
COMPENSATION
£1M
TENURE
5.8 yrs

Alan Ferguson

TITLE
Senior Independent Director
COMPENSATION
£93K
AGE
61
TENURE
5 yrs

Chris Mottershead

TITLE
Non-Executive Director
COMPENSATION
£89K
AGE
63
TENURE
4.5 yrs

Odile Desforges

TITLE
Non Executive Director
COMPENSATION
£65K
AGE
69
TENURE
6 yrs

Jane Griffiths

TITLE
Non-Executive Director
COMPENSATION
£65K
TENURE
2.5 yrs

John O'Higgins

TITLE
Non-Executive Director
COMPENSATION
£65K
AGE
55
TENURE
1.7 yrs

Xiaozhi Liu

TITLE
Non-Executive Director
AGE
63
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
11. Dec 18 Buy Christopher Mottershead Individual 11. Dec 18 11. Dec 18 941 £26.05 £24,513
X
Management checks
We assess Johnson Matthey's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Johnson Matthey has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JMAT News

Simply Wall St News

Would Johnson Matthey Plc (LON:JMAT) Be Valuable To Income Investors?

Dividend paying stocks like Johnson Matthey Plc (LON:JMAT) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … While Johnson Matthey's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. … For the purpose of this article, we only scrutinise the last decade of Johnson Matthey's dividend payments.

Simply Wall St -

Did Johnson Matthey's (LON:JMAT) Share Price Deserve to Gain 15%?

For example, the Johnson Matthey Plc (LON:JMAT) share price return of 15% over three years lags the market return in the same period. … Johnson Matthey was able to grow its EPS at 9.0% per year over three years, sending the share price higher. … We note that for Johnson Matthey the TSR over the last 3 years was 24%, which is better than the share price return mentioned above.

Simply Wall St -

Johnson Matthey Plc (LON:JMAT): Has Recent Earnings Growth Beaten Long-Term Trend?

When Johnson Matthey Plc's (LON:JMAT) announced its latest earnings (31 March 2019), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Johnson Matthey's average earnings over the past couple of years, and its industry performance. … View our latest analysis for Johnson Matthey Commentary On JMAT's Past Performance JMAT's trailing twelve-month earnings (from 31 March 2019) of UK£413m has jumped 39% compared to the previous year.

Simply Wall St -

Johnson Matthey Plc's (LON:JMAT) Earnings Grew 39%, Did It Beat Long-Term Trend?

After reading Johnson Matthey Plc's (LON:JMAT) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … See our latest analysis for Johnson Matthey Did JMAT beat its long-term earnings growth trend and its industry? … I recommend you continue to research Johnson Matthey to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for JMAT’s future growth?

Simply Wall St -

Does This Valuation Of Johnson Matthey Plc (LON:JMAT) Imply Investors Are Overpaying?

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £50.42 £304.44 £302.11 £306.26 £303.75 £336.00 £344.71 £352.24 £358.92 £365.00 Growth Rate Estimate Source Analyst x7 Analyst x5 Analyst x6 Analyst x5 Analyst x2 Analyst x1 Est @ 2.59% Est @ 2.18% Est @ 1.9% Est @ 1.7% Present Value (£, Millions) Discounted @ 7.94% £46.71 £261.27 £240.19 £225.57 £207.25 £212.39 £201.86 £191.08 £180.37 £169.93 Present Value of 10-year Cash Flow (PVCF)= £1.94b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£365m × (1 + 1.2%) ÷ (7.9% – 1.2%) = UK£5.5b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£5.5b ÷ ( 1 + 7.9%)10 = £2.56b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is £4.50b.

Simply Wall St -

Does Johnson Matthey Plc’s (LON:JMAT) ROCE Reflect Well On The Business?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Johnson Matthey: 0.14 = UK£529m ÷ (UK£5.1b - UK£1.3b) (Based on the trailing twelve months to September 2018.) Therefore, Johnson Matthey has an ROCE of 14%. … Do Johnson Matthey's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

A Spotlight On Johnson Matthey Plc's (LON:JMAT) Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … I've been keeping an eye on Johnson Matthey Plc (LON:JMAT) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe JMAT has a lot to offer.

Simply Wall St -

Do You Know What Johnson Matthey Plc's (LON:JMAT) P/E Ratio Means?

We'll apply a basic P/E ratio analysis to Johnson Matthey Plc's (LON:JMAT), to help you decide if the stock is worth further research. … Johnson Matthey has a P/E ratio of 19.82, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Johnson Matthey Plc (LON:JMAT) Create Value For Shareholders?

To keep the lesson grounded in practicality, we'll use ROE to better understand Johnson Matthey Plc (LON:JMAT). … That means that for every £1 worth of shareholders' equity, it generated £0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Dividend Hunters Love Johnson Matthey Plc (LON:JMAT)

There is a lot to be liked about Johnson Matthey Plc (LON:JMAT) as an income stock. … Let's dig deeper into whether Johnson Matthey should have a place in your portfolio. … See our latest analysis for Johnson Matthey

Simply Wall St -

JMAT Company Info

Description

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.

Details
Name: Johnson Matthey Plc
JMAT
Exchange: LSE
Founded: 1817
£6,398,632,686
192,093,446
Website: http://www.matthey.com
Address: Johnson Matthey Plc
25 Farringdon Street,
5th Floor,
London,
Greater London, EC4A 4AB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE JMAT Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK JMPL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB JMT2 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV JMAT N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE JMATL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK JMPL.Y SPON ADR Pink Sheets LLC US USD 31. Dec 1998
Number of employees
Current staff
Staff numbers
12,873
Johnson Matthey employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 20:43
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/13
Last earnings filing: 2019/06/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.