What Are Analysts Saying About Johnson Matthey Plc’s (LSE:JMAT) Future?
Johnson Matthey Plc (LSE:JMAT)’s sound earnings growth per share is expected to be a double-digit 15.46% over the next three years. Presently, with an EPS of £2.012, we can expect an upcoming EPS of £2.323. I am going to look at the latest data on JMAT to assess whether this expected growth is reasonable. Check out our latest analysis for Johnson Matthey
How is JMAT going to perform in the future?
Analyst expectation from the stock’s 12 analysts is one of positive sentiment, with earnings estimated to expand from current levels of £2.012 to £2.323 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 15.46% over the next few years, which is an optimistic outlook in the near term. During the same time revenue is expected to be slashed from £12,031M to £4,190M and profits (net income) are predicted to escalate from £386M to £446M in the next couple of years, growing by 15.46%. Moreover, future margins are predicted to be a respectable 10.99%.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is illustrative of future headwinds or whether the company continues to grapple with higher growth. JMAT delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For JMAT, I’ve compiled three pertinent factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is JMAT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JMAT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of JMAT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
