Johnson Matthey Plc (JMAT.L) stock analysis

In our weekly check, Johnson Matthey Plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 6, red flags: 7.

About Johnson Matthey Plc

Johnson Matthey Plc is a Basic Materials company (Chemicals - Specialty) based in the United Kingdom, listed on LSE as JMAT.L.

What our checks show for JMAT.L

Red flags

• The gross margin fell by 1.5 points, to 5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 40.1% a year.
• Revenue fell 5.6% a year over the last 3 years.
• Earnings per share fell 26.2% a year over the last 3 years.
• The company is losing money: the net margin is -0.8%.
• Johnson Matthey Plc pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 70% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 2.4 times: a weak year could make the payments hard.
• The net margin fell by 0.1 points over 5 years, to -0.8%: the company keeps less of each sale as profit.
• Free cash flow is only 1.3% of revenue.
• The stock is still below its previous peak.
• Thinly traded (about 451 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 8.4%.

Strengths

• Operating cash flow is 3.92x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 65% a year over the next years.
• Analysts expect the net margin to improve by 16.5 points from today's -0.8%.
• The share count fell by 8.7% in 2 years: the company buys back its own shares.
• Pay in shares is only 3.8% of free cash flow.

Next earnings report: 2026-11-19

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Questions

What grade does Johnson Matthey Plc (JMAT.L) have?

In our weekly check, Johnson Matthey Plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of JMAT.L stock?

This week's biggest flags for Johnson Matthey Plc: Gross margin falling, Weak revenue forecast, Weak revenue growth. In total 13 of 23 checks show a warning or a red flag.

What does Johnson Matthey Plc do?

Johnson Matthey Plc is a Basic Materials company (Chemicals - Specialty) based in the United Kingdom, listed on LSE as JMAT.L.

When does Johnson Matthey Plc report earnings next?

The next earnings report is expected on 2026-11-19. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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