New value analysis of Johnson Matthey Plc (JMAT:LSE) 2018
New value analysis of Johnson Matthey Plc (JMAT:LSE) 2018
A new value analysis of Johnson Matthey Plc (JMAT:LSE), a company listed in London has been added to our research pages here. JMAT is a global technology company, which provides products on the basis of research done in catalysis and materials sciences.
This post is going to look virtually the same as the post from 2016. The reason is that nothing much has changed except the share price, which has risen 27%. Investors have also seen the dividend rise by about about 10%. Also, if you had purchased at the time of the 2016 analysis you would have received a Special Dividend on top of the usual dividends.
JMAT is a company that very rarely trades cheaply in comparison to earnings or book value. There are a few reasons why this might be the case.
JMAT has a very conservative capital structure, which means that owners of the common stock have very few financial risks to consider. The analysis in this report shows the conservative nature of the capital structure of JMAT. If you download the report from 2016 you will see that JMAT has been conservatively financed for a long time.
JMAT has a good record of increasing earnings per share, which is also a good reason to own the common stock. The good earnings per share record is complemented by a high return on equity. JMAT also has a clear policy to grow the asset base through consistent capital expenditure on behalf of shareholders.
As JMAT common stock rarely sells cheaply, anyone who does not own the common stock can make an initial purchase at almost any time. In order to reduce risk purchasers can then buy regularly or at times when the common stock sells cheaply.
In order to find out why JMAT represents good value at the current price download the individual report here
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