U.S. Markets closed

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

Kristin Rankin

Johnson Matthey Plc (LON:JMAT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of JMAT, it is a dependable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Johnson Matthey here.

Excellent balance sheet established dividend payer

JMAT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that JMAT manages its cash and cost levels well, which is an important determinant of the company’s health. JMAT seems to have put its debt to good use, generating operating cash levels of 0.25x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

LSE:JMAT Historical Debt January 26th 19

JMAT is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

LSE:JMAT Historical Dividend Yield January 26th 19

Next Steps:

For Johnson Matthey, I’ve compiled three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for JMAT’s future growth? Take a look at our free research report of analyst consensus for JMAT’s outlook.
  2. Historical Performance: What has JMAT’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JMAT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.