# Johnson Matthey (JMAT.LSE)

Canonical: https://gigainvestors.com/s/JMAT.LSE

Analysis as of: 2026-10-16T07:38:05.477Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 2,462.00 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 2

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.03×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.02×

- FY2025: 0.05×

- FY2026: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.9%

- ROIC, second-lowest year: 7.8%

- Typical minus recent gross margin: 1.8 pp

- Typical gross margin (annual median): 6.8%

- Recent gross margin (lower of latest and 3-year median): 5.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 4.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 17.7%

- FY2018: 19.2%

- FY2019: 15.9%

- FY2020: 13.1%

- FY2021: 14.7%

- FY2022: 11.2%

- FY2023: 12.3%

- FY2024: 5.5%

- FY2025: 15.0%

- FY2026: 7.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -186M

- Net income, five-year total: GBP 560M

- Return on incremental invested capital: -7.7%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.2 pp

- Working capital / revenue, final three-year average: 14.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 3.23×

- FY2023: 0.50×

- FY2024: -0.69×

- FY2025: 0.48×

- FY2026: 1.06×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.7% vs 7.8%

- Per-share earnings: 1.74 to 0.59 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.3%

- Ordinary dilution, 5-year annual growth: -2.7%

- Market cap gain: GBP -2.7B

- Cumulative retained earnings: GBP 500K

- Diluted shares, 10-year annual growth: -1.3%

- Diluted shares, 5-year annual growth: -2.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -12.6%

- Per-share value change: GBP -1.14

- Per-share value, starting three-year median: GBP 1.74

- Per-share value, ending three-year median: GBP 0.59

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 4.2%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 267M

- Cumulative net income, 10 years: GBP 2.1B

- ROIC, first three-year median: 17.7%

- ROIC, last three-year median: 7.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 2.01

- FY2018: GBP 1.55

- FY2019: GBP 2.15

- FY2020: GBP 1.32

- FY2021: GBP 1.06

- FY2022: GBP -0.53

- FY2023: GBP 1.50

- FY2024: GBP 0.59

- FY2025: GBP 2.22

- FY2026: GBP -0.57

### accounting: pass

- Sloan accruals: -7.9%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.6%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.1%

- FY2018: -0.9%

- FY2019: 2.1%

- FY2020: -4.7%

- FY2021: -7.3%

- FY2022: -10.6%

- FY2023: -0.2%

- FY2024: -7.6%

- FY2025: -0.1%

- FY2026: -7.9%

## Holders

## Price story

Up 65% since Oct 2023 · sales +7.7%

Story as of 2026-10-16T10:00:09.726Z; price observation 2026-10-15.

- 2026-08-19: Johnson Matthey (LSE:JMAT) Stock Sees Fair Value Lift After Cormetech Deal Reframes Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/johnson-matthey-lse-jmat-stock-032054630.html))

### Sales · FY2025–2026

sales +7.7%; source https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml; observed 2026-06-11.

- FY2017: GBP 12B 

- FY2018: GBP 10B 

- FY2019: GBP 11B 

- FY2020: GBP 15B 

- FY2021: GBP 15B 

- FY2022: GBP 16B 

- FY2023: GBP 15B 

- FY2024: GBP 13B 

- FY2025: GBP 12B 

- FY2026: GBP 13B 

### Gross margin · FY2026

gross margin 5%; source https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml; observed 2026-06-11.

- FY2017: 6.9% 

- FY2018: 8.6% 

- FY2019: 9.3% 

- FY2020: 6.7% 

- FY2021: 6.1% 

- FY2022: 6.5% 

- FY2023: 6.6% 

- FY2024: 7.2% 

- FY2025: 7.7% 

- FY2026: 5.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are GBP 12.6 billion.

- Source: https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: revenue 12573000000; grossProfit 629000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JMAT.LSE: Johnson 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, rest of Asia, and internationally. It operates through Clean Air, PGM Services, and Hydrogen Technologies segments. The Clean Air segment provides catalysts for emission control after-treatment systems to reduce harmful emissions from cars, other light duty vehicles, trucks, buses, and non-road equipment powered by internal combustion engines. The PGM Services segment enables the energy transition that offers circular solutions as demand for critical materials. This segment also offers PGM refining and recycling services; engages in PGM trading activities; other precious metal products; and PGM chemicals, industrial products, and catalysts. The Hydrogen Technologies segment offers components across the value chain for fuel cells and electrolysers, including catalyst coated membranes and membrane electrode assemblies. 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 headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 5% to 7.7% during 2024–26; it earns 13.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: grossProfit / revenue = 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: grossProfit / revenue = 7.7%.

- Source: https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: grossProfit / revenue = 5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); 10-year return on capital observations [[2017,0.1774763700252136],[2018,0.19156172315050818],[2019,0.15901284814793806],[2020,0.131254158877024],[2021,0.1466491523743432],[2022,0.1124312242090784],[2023,0.12329896717248497],[2024,0.05506232698324297],[2025,0.1499308151853944],[2026,0.07814207650273224]]; median 0.1389516556256836. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 7% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml (filed 2026-06-11); Gross margin observations: [[2021,0.061159701976028505],[2022,0.0653978159126365],[2023,0.06622915690082368]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2017: growth capex 87700000; upkeep 171800000; owner earnings 386000000. Growth capex / owner earnings = 0.2272020725388601.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2018: growth capex 0; upkeep 216000000; owner earnings 260000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2019: growth capex 51066349.66329086; upkeep 249933650.33670914; owner earnings 334066349.66329086. Growth capex / owner earnings = 0.1528628959928505.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2020: growth capex 265000000; upkeep 178000000; owner earnings 239800000. Growth capex / owner earnings = 1.1050875729774812.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2021: growth capex 91398484.8618486; upkeep 289601515.1381514; owner earnings 72998484.8618486. Growth capex / owner earnings = 1.2520600261063288.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2023: growth capex 0; upkeep 316000000; owner earnings 139000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: growth capex 0; upkeep 373000000; owner earnings 177800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Dividend observations: [[2017,139000000],[2018,146000000],[2019,156000000],[2020,167000000],[2021,99000000],[2022,139000000],[2023,141000000],[2024,141000000],[2025,138000000],[2026,129000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JMAT.LSE SharesStats.PercentInsiders = 0.5579999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Closing price 2462 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 74.80945099275884; price multiple 0.32910280283146426. FY2026 cash earnings/share -0.6045208161031017. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 3,410.00 per share

- 2016-11: GBX 3,130.00 per share

- 2016-12: GBX 3,182.00 per share

- 2017-01: GBX 3,251.00 per share

- 2017-02: GBX 3,064.00 per share

- 2017-03: GBX 3,080.00 per share

- 2017-04: GBX 2,979.00 per share

- 2017-05: GBX 3,112.00 per share

- 2017-06: GBX 2,871.00 per share

- 2017-07: GBX 2,810.00 per share

- 2017-08: GBX 2,764.00 per share

- 2017-09: GBX 3,420.00 per share

- 2017-10: GBX 3,381.00 per share

- 2017-11: GBX 3,031.00 per share

- 2017-12: GBX 3,075.00 per share

- 2018-01: GBX 3,460.00 per share

- 2018-02: GBX 3,135.00 per share

- 2018-03: GBX 3,042.00 per share

- 2018-04: GBX 3,294.00 per share

- 2018-05: GBX 3,513.00 per share

- 2018-06: GBX 3,619.00 per share

- 2018-07: GBX 3,760.00 per share

- 2018-08: GBX 3,496.00 per share

- 2018-09: GBX 3,562.00 per share

- 2018-10: GBX 2,973.00 per share

- 2018-11: GBX 2,924.00 per share

- 2018-12: GBX 2,799.00 per share

- 2019-01: GBX 3,043.00 per share

- 2019-02: GBX 3,093.00 per share

- 2019-03: GBX 3,142.00 per share

- 2019-04: GBX 3,337.00 per share

- 2019-05: GBX 3,094.00 per share

- 2019-06: GBX 3,329.00 per share

- 2019-07: GBX 3,215.00 per share

- 2019-08: GBX 2,910.00 per share

- 2019-09: GBX 3,057.00 per share

- 2019-10: GBX 3,070.00 per share

- 2019-11: GBX 2,874.00 per share

- 2019-12: GBX 2,996.00 per share

- 2020-01: GBX 2,605.00 per share

- 2020-02: GBX 2,511.00 per share

- 2020-03: GBX 1,798.00 per share

- 2020-04: GBX 1,992.50 per share

- 2020-05: GBX 2,113.00 per share

- 2020-06: GBX 2,098.00 per share

- 2020-07: GBX 2,239.00 per share

- 2020-08: GBX 2,375.00 per share

- 2020-09: GBX 2,357.00 per share

- 2020-10: GBX 2,149.00 per share

- 2020-11: GBX 2,224.00 per share

- 2020-12: GBX 2,425.00 per share

- 2021-01: GBX 2,952.00 per share

- 2021-02: GBX 3,055.00 per share

- 2021-03: GBX 3,013.00 per share

- 2021-04: GBX 3,250.00 per share

- 2021-05: GBX 3,046.00 per share

- 2021-06: GBX 3,073.00 per share

- 2021-07: GBX 2,972.00 per share

- 2021-08: GBX 2,939.00 per share

- 2021-09: GBX 2,685.00 per share

- 2021-10: GBX 2,733.00 per share

- 2021-11: GBX 2,096.00 per share

- 2021-12: GBX 2,046.00 per share

- 2022-01: GBX 1,940.00 per share

- 2022-02: GBX 1,883.00 per share

- 2022-03: GBX 1,878.50 per share

- 2022-04: GBX 2,225.00 per share

- 2022-05: GBX 2,110.00 per share

- 2022-06: GBX 1,925.50 per share

- 2022-07: GBX 2,137.00 per share

- 2022-08: GBX 2,015.00 per share

- 2022-09: GBX 1,832.50 per share

- 2022-10: GBX 1,934.50 per share

- 2022-11: GBX 2,089.00 per share

- 2022-12: GBX 2,127.00 per share

- 2023-01: GBX 2,256.00 per share

- 2023-02: GBX 2,182.00 per share

- 2023-03: GBX 1,983.50 per share

- 2023-04: GBX 1,963.50 per share

- 2023-05: GBX 1,730.00 per share

- 2023-06: GBX 1,746.00 per share

- 2023-07: GBX 1,801.00 per share

- 2023-08: GBX 1,630.00 per share

- 2023-09: GBX 1,628.00 per share

- 2023-10: GBX 1,494.00 per share

- 2023-11: GBX 1,550.00 per share

- 2023-12: GBX 1,697.50 per share

- 2024-01: GBX 1,627.00 per share

- 2024-02: GBX 1,541.50 per share

- 2024-03: GBX 1,789.00 per share

- 2024-04: GBX 1,756.00 per share

- 2024-05: GBX 1,758.00 per share

- 2024-06: GBX 1,567.00 per share

- 2024-07: GBX 1,639.00 per share

- 2024-08: GBX 1,635.00 per share

- 2024-09: GBX 1,521.00 per share

- 2024-10: GBX 1,488.00 per share

- 2024-11: GBX 1,359.00 per share

- 2024-12: GBX 1,340.00 per share

- 2025-01: GBX 1,432.00 per share

- 2025-02: GBX 1,430.00 per share

- 2025-03: GBX 1,324.00 per share

- 2025-04: GBX 1,285.00 per share

- 2025-05: GBX 1,717.00 per share

- 2025-06: GBX 1,736.00 per share

- 2025-07: GBX 1,768.00 per share

- 2025-08: GBX 1,911.00 per share

- 2025-09: GBX 2,010.00 per share

- 2025-10: GBX 2,132.00 per share

- 2025-11: GBX 1,990.00 per share

- 2025-12: GBX 2,132.00 per share

- 2026-01: GBX 2,360.00 per share

- 2026-02: GBX 2,012.00 per share

- 2026-03: GBX 1,897.00 per share

- 2026-04: GBX 2,078.00 per share

- 2026-05: GBX 2,120.00 per share

- 2026-06: GBX 1,892.00 per share

- 2026-07: GBX 1,992.00 per share

- 2026-08: GBX 2,276.00 per share

- 2026-09: GBX 2,406.00 per share

- 2026-10: GBX 2,462.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 2,223.32 per share, central GBX 2,825.96 per share, high GBX 3,293.40 per share

- FY2018: low GBX 1,845.94 per share, central GBX 2,202.78 per share, high GBX 2,550.21 per share

- FY2019: low GBX 2,143.41 per share, central GBX 2,571.29 per share, high GBX 2,975.29 per share

- FY2020: low GBX 2,625.62 per share, central GBX 3,393.73 per share, high GBX 3,964.43 per share

- FY2021: low GBX 2,378.13 per share, central GBX 2,683.41 per share, high GBX 3,089.80 per share

- FY2022: low GBX 1,550.29 per share, central GBX 1,757.04 per share, high GBX 2,032.28 per share

- FY2023: low GBX 1,041.51 per share, central GBX 1,155.28 per share, high GBX 1,306.74 per share

- FY2024: low GBX 521.45 per share, central GBX 571.74 per share, high GBX 638.70 per share

- FY2025: low GBX 754.56 per share, central GBX 804.07 per share, high GBX 869.99 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138001AVBSD1HSC6Z10/2026-03-31/ESEF/GB/0/2138001AVBSD1HSC6Z10-2026-03-31/reports/2138001AVBSD1HSC6Z10-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-06-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.