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Johnson Matthey PLC (JMPLY)
OTHER OTC:JMPLY
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Johnson Matthey
(OTC:JMPLY)
70Outperform
Johnson Matthey (JMPLY) vs. S&P 500 (SPY)
Market Cap
$2.95B
Dividend Yield5.42%
Average Volume (3M)1.47K
Price to Earnings (P/E)4.7
Beta (1Y)0.96
Revenue Growth-12.54%
EPS Growth215.95%
CountryUS
Employees11,685
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)7.44
Shares Outstanding83,919,395
10 Day Avg. Volume981
30 Day Avg. Volume1,474
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.18
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Johnson Matthey Business Overview & Revenue Model
Company DescriptionJohnson Matthey Plc engages in the clean air, catalyst and hydrogen technology, and platinum group metals (PGM) service businesses in the United Kingdom, Germany, rest of Europe, the United States, rest of North America, China and Hong Kong, rest of Asia, and internationally. It operates through three segments: Clean Air, Efficient Natural Resources, and Other Markets. The Clean Air segment provides catalysts for emission control after-treatment systems to remove harmful emissions from vehicles, as well as cars, other light duty vehicles, trucks, buses, and non-road equipment powered by diesel and gasoline. The Efficient Natural Resources segment provides products and processing services for the use and transformation of critical natural resources including oil, gas, biomass, and platinum group metals; and circular economy solutions. This segment also offers specialty catalysts and additives; process technology and engineering design licenses; platinum group metal refining and recycling services, and chemical and industrial products; and other precious metal services. The Other Markets segment business portfolio includes precious metal pastes and enamels, battery systems, fuel cell technologies, battery materials, and green hydrogen; science and technology to develop the products for devices used in medical procedures; and detection, diagnostic, and measurement solutions. 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.
How the Company Makes MoneyJohnson Matthey makes money by leveraging its expertise in chemistry and materials science to create high-performance products that meet the needs of its diverse customer base. The company's key revenue streams include the sale of catalytic converters for automotive emission control, which is a critical component in meeting stringent environmental regulations. Additionally, Johnson Matthey generates income through its advanced materials division, producing specialized chemicals and materials for industries like pharmaceuticals and energy. The company also engages in strategic partnerships and collaborations to drive innovation and expand its market reach, further contributing to its earnings.
Johnson Matthey Financial Statement Overview
Summary
Johnson Matthey faces declining revenue and profitability challenges, impacting its growth trajectory. However, it maintains a stable balance sheet with reasonable leverage and a strong equity base. The positive shift in cash flow patterns highlights improved cash generation abilities, positioning the company for potential future stabilization and growth.Income Statement
Johnson Matthey has experienced a decline in revenue over recent years, with a revenue decrease of 14% in the most recent annual period. The gross profit margin is at 7.0%, indicating moderate efficiency in production. The net profit margin has dropped to 0.8%, reflecting challenges in maintaining profitability. The EBIT margin stands at 1.9%, while the EBITDA margin is 3.8%, both suggestive of tight operational margins.65
Positive
Balance Sheet
The company's debt-to-equity ratio is manageable at 0.63, indicating a balanced approach to leverage. The return on equity is low at 4.5%, suggesting limited efficiency in generating profits from shareholders' equity. The equity ratio is 37.6%, which reflects a solid capital base and reasonable financial stability.72
Positive
Cash Flow
Johnson Matthey shows strong cash flow management with significant improvement in free cash flow from negative to positive $224 million. The operating cash flow to net income ratio is robust at 5.48, indicating effective conversion of revenue into cash. The free cash flow to net income ratio has improved, reflecting enhanced liquidity and financial flexibility.78
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.84B | 14.93B | 16.02B | 15.44B | 14.58B | Gross Profit |
| 898.00M | 989.00M | 1.05B | 944.00M | 981.00M | EBIT |
| 249.00M | 505.00M | 503.00M | 488.00M | 526.00M | EBITDA |
| 488.00M | 621.00M | 467.00M | 564.00M | 673.00M | Net Income Common Stockholders |
| 108.00M | 276.00M | -101.00M | 205.00M | 255.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 542.00M | 697.00M | 418.00M | 625.00M | 332.00M | Total Assets |
| 6.34B | 7.03B | 6.67B | 7.74B | 7.36B | Total Debt |
| 1.49B | 1.67B | 1.25B | 1.38B | 1.43B | Net Debt |
| 948.00M | 1.02B | 860.00M | 795.00M | 1.13B | Total Liabilities |
| 3.96B | 4.49B | 4.22B | 5.06B | 4.54B | Stockholders Equity |
| 2.38B | 2.54B | 2.44B | 2.69B | 2.82B |
| Cash Flow | Free Cash Flow | |||
| 224.00M | -91.00M | 73.00M | 295.00M | 57.00M | Operating Cash Flow |
| 592.00M | 225.00M | 526.00M | 676.00M | 500.00M | Investing Cash Flow |
| -255.00M | -129.00M | -292.00M | -357.00M | -435.00M | Financing Cash Flow |
| -439.00M | 191.00M | -439.00M | -43.00M | -168.00M |
Johnson Matthey Technical Analysis
Negative
34.02
Price Trends
36.10
Negative
35.62
Negative
37.99
Negative
Market Momentum
-0.41
Positive
34.71
Neutral
7.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JMPLY, the sentiment is Negative. The current price of 34.02 is below the 20-day moving average (MA) of 36.60, below the 50-day MA of 36.10, and below the 200-day MA of 37.99, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 34.71 is Neutral, neither overbought nor oversold. The STOCH value of 7.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JMPLY.
Johnson Matthey Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $220.21B | 34.19 | 16.87% | 1.21% | 0.46% | 7.97% | |
75 Outperform | $10.17B | 11.48 | 16.11% | 3.74% | 1.91% | 2.94% | |
70 Outperform | $2.95B | 4.74 | 21.76% | 5.42% | -12.54% | 215.95% | |
69 Neutral | $65.02B | 16.97 | 24.40% | 2.42% | -3.12% | 64.53% | |
65 Neutral | $24.82B | 18.33 | 19.13% | 2.46% | -4.59% | 11.09% | |
47 Neutral | $2.65B | -3.07 | -22.25% | 3.27% | 3.70% | -29.53% | |
42 Neutral | $8.49B | ― | -12.18% | 2.23% | -44.08% | -183.44% |
* Basic Materials Sector Average
Performance Comparison
JMPLY
Johnson Matthey
34.02
-8.66
-20.29%
APD
Air Products and Chemicals
294.92
59.59
25.32%
ALB
Albemarle
71.82
-52.42
-42.19%
EMN
Eastman Chemical
88.08
-9.02
-9.29%
PPG
PPG Industries
108.95
-29.65
-21.39%
LIN
Linde
467.09
11.48
2.52%
Johnson Matthey Earnings Call Summary
Earnings Call Date: Nov 27, 2024 | % Change Since: -8.35% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable strengths in Catalyst Technologies and cost savings, but challenges in Clean Air and PGM Services segments. The strategic focus on transformation and sustainable technologies offers a positive outlook, though current market conditions pose challenges.Highlights
Resilient First Half Performance
Sales decreased 3% and underlying operating profit 4%, in line with expectations. Free cash flow was GBP347 million, driven by divestments.
Strong Catalyst Technologies Growth
Sales grew 20% to GBP336 million, with operating profit increasing 43% to GBP50 million. The segment benefited from licensing sales more than doubling.
Cost Savings and Transformation Benefits
GBP35 million cost savings in the first half, with a total of GBP155 million to date. On track to deliver GBP200 million by year-end.
Share Buyback Program
Initiated GBP250 million share buyback, with half completed by September 2024.
Strategic Progress in Sustainable Technologies
13 sustainable technology projects, including significant projects in sustainable aviation fuel.
Lowlights
Clean Air Segment Challenges
Sales down 7% to GBP1.2 billion, impacted by weak end markets and platform losses.
Decline in Platinum Group Metals Services
Sales decreased 9% to GBP207 million, with operating profit down 35% due to lower refining volumes and trading gains.
Hydrogen Technologies Underperformance
Sales declined to GBP20 million, with an operating loss of GBP26 million due to market slowdown.
Net Debt and Operating Cash Flow Concerns
Net debt at GBP783 million, with weaker operating cash flow in the first half.
Company Guidance
During the call, Johnson Matthey provided detailed guidance for Fiscal Year 2025, emphasizing their strong confidence in achieving a robust second half performance. The company maintained its full-year guidance, projecting at least mid-single-digit growth in operating performance. They reported a 3% decline in sales to £1.7 billion and a 4% decrease in underlying operating profit, but highlighted a resilient first-half performance with a free cash flow of £347 million and net debt reduced to £783 million. The company is progressing with their transformation program, expecting £200 million in savings by year-end. By March, a £250 million share buyback will be completed. Clean Air sales dropped 7% to £1.2 billion, while PGM Services sales fell 9% to £207 million. Catalyst Technologies grew 20% to £336 million, and Hydrogen Technologies saw a decline with a £26 million loss. The company expects strong second-half results for Platinum Group Metals and a reduced loss in Hydrogen Technologies, with ongoing capital discipline and strategic progress supporting their outlook.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.