Core Insights - Johnson Matthey PLC (JMPLY) currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while FMC has a Zacks Rank of 4 (Sell), suggesting a less favorable outlook for investors [1] Valuation Metrics - JMPLY has a forward P/E ratio of 9.23, significantly lower than FMC's forward P/E of 18.60, indicating that JMPLY may be undervalued relative to FMC [2] - The PEG ratio for JMPLY is 0.48, compared to FMC's PEG ratio of 1.57, suggesting that JMPLY offers better value when considering expected earnings growth [2] - JMPLY's P/B ratio stands at 1.22, while FMC's P/B ratio is 1.68, further supporting the notion that JMPLY is more attractively valued [2] Overall Value Assessment - Based on the aforementioned metrics, JMPLY has earned a Value grade of A, whereas FMC has a Value grade of C, highlighting JMPLY as the superior value option at this time [3]

Financial Data and Key Metrics Changes - Reported sales decreased by 4% to GBP3.9 billion, while operating profit decreased by 8% due to significantly lower average metal prices [23][27] - Underlying operating profit increased by 11% when excluding the impact of metal prices and foreign exchange rates, driven by cost savings and higher pricing [24][28] - Underlying earnings per share were 141.3 pence, down due to lower operating profit and higher interest [25] Business Line Data and Key Metrics Changes - Catalyst Technologies sales grew by 6%, with operating profit increasing by 56% [27][38] - Hydrogen Technologies saw a 31% increase in sales, but reported an operating loss of GBP50 million due to investments in capacity and product development [40] - Clean Air sales grew by 2%, with a significant increase in underlying operating profit of 26% [35][36] - PGM Services sales decreased by 17% to GBP462 million, primarily due to lower average metal prices [36] Market Data and Key Metrics Changes - The hydrogen market softened in the second half, impacting growth rates [40] - Palladium and rhodium prices decreased by 38% and 64% respectively, affecting PGM Services [36] Company Strategy and Development Direction - The company is focused on building a stronger business model to drive energy transition, with new strategic milestones set for the future [8][53] - The divestment of value businesses has allowed the company to concentrate on core operations, enhancing overall value creation [14][83] - The company aims to increase cash flow targets for Clean Air from GBP4 billion to GBP4.5 billion by 2030-31 [53] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains weak, but underlying growth of 11% indicates that the transformation strategy is effective [7][95] - The company is cautious about future guidance, reflecting the current market conditions and potential challenges [99] - Management emphasized the importance of sustainability and customer focus as integral to the company's strategy [92][88] Other Important Information - The company plans to return GBP250 million to shareholders via a share buyback following the completion of the Medical Device Components disposal [26] - The transformation program has achieved cumulative savings of GBP120 million, with an upgraded target of GBP200 million by the end of the year [29][30] Q&A Session Summary Question: Guidance on mid-single-digit growth - Management explained that the cautious outlook reflects the current market conditions, and they aim to exceed this guidance [99] Question: Debt performance and buyback plans - Management acknowledged the improved debt position and indicated that they are following a capital allocation framework, with no immediate plans for a larger buyback [100] Question: Clean Air cash generation assumptions - Management indicated that the Clean Air cash generation target is based on evolving market conditions and increased electric vehicle penetration [101]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

Financial Data and Key Metrics Changes - Sales decreased by 1% to just under GBP2 billion, while operating profit decreased by 15% due to significant reductions in average metal prices [17][18] - Underlying operating profit increased by 10% to GBP244 million, excluding the impact of foreign exchange and metal prices [21] - Earnings per share decreased due to higher taxes and increased finance charges [18][19] Business Line Data and Key Metrics Changes - Clean Air sales grew by 4%, supported by increased pricing and slightly higher volumes [20][28] - Catalyst Technologies sales increased by 5%, with improved pricing and good growth in formaldehyde [33] - Hydrogen Technologies sales surged by 61% as the business scales [35] - PGM Services sales decreased by 16% to GBP230 million, driven by lower average metal prices and reduced recycling volumes [31] Market Data and Key Metrics Changes - The average price of rhodium has declined significantly, impacting the PGM services [31] - Clean Air outperformed in Asia but underperformed in Europe due to a weaker product mix [29] - The company expects limited growth in vehicle production this year, affecting margins [38] Company Strategy and Development Direction - The company is focused on a transformation journey aimed at sustainable growth and value creation [8][15] - Strategic milestones are on track, with a particular emphasis on improving operational efficiencies and commercial capabilities [12][14] - The company is committed to divesting non-core value businesses, with total cash proceeds from divestments expected to reach at least GBP300 million by the end of '23/'24 [25] Management's Comments on Operating Environment and Future Outlook - The management highlighted a volatile operating environment due to geopolitical conflicts and inflation [5][6] - The company expects at least high single-digit growth in operating performance, assuming constant currency and metal prices [37] - Management remains optimistic about the growth potential in Clean Air and Catalyst Technologies, while acknowledging challenges in PGM services [38][39] Other Important Information - The company maintained a strong balance sheet with net debt around GBP1 billion and a net debt-to-EBITDA ratio of 1.7 times [19] - Capital expenditure for the three years to '24/'25 is now expected to be GBP1 billion, a reduction of 10% [41] - The company is on track to generate at least GBP4 billion of cash through 2031 [30] Q&A Session Summary Question: Impact of Global Business Services on Cost Structure - Management explained that Global Business Services aims to improve processes and reduce costs significantly, with expected savings of GBP15 million this year [81][84] Question: Value Proposition and Pricing Strategy - The company is enhancing its commercial capabilities, focusing on cross-selling and value-based pricing to improve customer relationships and margins [82][89] Question: Volume and Pricing Outlook - Management indicated that overall performance is not dependent on volume increases but rather on pricing and transformation benefits, with expectations for volume growth in the second half [94][96] Question: EV Penetration Impact on Business - Management noted differing expectations for EV penetration across regions, with a positive outlook for China but caution regarding other markets [99][100]

Presentation of results for the half year ended 30th September 2023 22nd November 2023 Cautionary statement | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Overall operating performance was in line with market expectations, with underlying sales up 6% to £4.2 billion, operating profit down 21% to £465 million, and earnings per share at 179p compared to 213p last year [9][10][27] - Net debt stood at £1 billion, with a net debt-to-EBITDA ratio of 1.6x, at the lower end of the target range of 1.5x to 2x [10][12] - Proposed total dividend remained at 77p, consistent with the previous year [10] Business Line Data and Key Metrics Changes - Clean Air sales grew 2%, driven by increased pricing that offset a decline in volumes due to supply chain disruptions [11][16] - PGMS sales decreased 8% to £570 million, impacted by lower average metal prices and reduced refinery intakes [18] - Catalyst Technologies saw a 17% increase in sales to £560 million, primarily due to strong growth in licensing and refills [19] - Hydrogen Technologies revenues more than doubled to £55 million, mainly from fuel cells [20] Market Data and Key Metrics Changes - Clean Air experienced a 4% increase in light-duty diesel sales in Europe, while heavy-duty diesel sales were up 3% [16][17] - The market for Platinum Group Metals (PGMs) remains volatile, with significant price fluctuations affecting overall performance [26][68] Company Strategy and Development Direction - The company is focused on driving growth through its Catalyst Technologies and Hydrogen Technologies businesses, which are key to the net-zero transition [29][30] - Plans to divest non-core parts of the portfolio within the next 12 months to concentrate on growth areas [29] - The company aims to generate at least £4 billion in cash by 2031, supported by tighter emissions legislation and significant contract wins [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the net-zero transition as a significant growth driver due to increased regulatory pressure and incentives globally [4][32] - The company anticipates mid-single-digit growth in operating performance for the next year, assuming stable precious metal prices [25][26] - Management highlighted the importance of improving commercial capabilities and operational efficiencies to enhance margins [40][59] Other Important Information - The company has made progress in its cost transformation program, achieving £45 million in savings towards a target of at least £150 million by 2024 [21][27] - Significant investments are being made in Hydrogen Technologies to meet customer demand and scale up production [49][54] Q&A Session Summary Question: Guidance for next year regarding operating profit and cash generation from Clean Air - Management acknowledged high inflation and the need for cost savings, emphasizing that cash generation from Clean Air is expected to be lumpy but on track for long-term targets [64][66] Question: Explanation of metal price impacts and margin increase actions - Management noted the volatility of metal prices, particularly rhodium, and outlined strategies to mitigate risks through pricing and cost management [67][68]

Johnson Matthey Plc (OTCPK:JMPLF) Q3 2022 Earnings Conference Call November 23, 2022 4:00 AM ET Company Representatives Liam Condon - Chief Executive Officer Stephen Oxley - Chief Financial Officer Anish Taneja - Chief Executive Officer, Clean Air Martin Dunwoodie - Head of Investor Relations Conference Call Participants Maggy Schooley - Stifel Kevin Fogarty - Numis Charlie Bentley - Jeffreys Ranulf Orr - Citi Andrew Stott - UBS Riya Kotecha - Bank of America Gunther Zechmann - Bernstein Alycia Samsudin - B ...

Johnson Matthey Plc (OTCPK:JMPLF) Q2 2021 Results Earnings Conference Call November 24, 2021 4:30 AM ET | --- | |------------------------------------------------| | | | Company Participants | | Martin Dunwoodie - Investor Relations Director | | Patrick Thomas - Chairman | | Robert MacLeod - Chief Executive | | Stephen Oxley - Chief Financial Officer | | Conference Call Participants | | Gunther Zechmann - Bernstein Research | | Alex Stewart - Barclays Capital | | Sebastian Bray - Berenberg Bank | | Mubasher ...

Financial Data and Key Metrics Changes - Group sales were materially down, primarily due to COVID-19, with a 27% decline in sales [13] - Operating profit declined by 42%, although mitigated by a focus on cost efficiencies [14] - Free cash inflow improved to £256 million from a £382 million outflow in the previous year [34] - Underlying EPS was down materially, and finance charges were higher due to increased interest rates [24] Business Line Data and Key Metrics Changes - **Clean Air**: Sales down 27%, operating profit down 56%, but recovery in demand is noted [14][15] - **Efficient Natural Resources**: Sales down 10%, operating profit down 12%, but PGM Services saw double-digit growth due to higher metal prices [19][21] - **Health**: Sales grew in both Innovators and Generics, but operating profit declined by 21% due to a weaker business mix [22] - **New Markets**: Sales declined 8%, but Fuel Cells grew by 30% [23] Market Data and Key Metrics Changes - In Europe and the U.S., light-duty production is expected to decline by about 20%, while heavy-duty declines are around 30% [18] - The Chinese market is stronger and is likely to be above the prior year [18] Company Strategy and Development Direction - The company is focusing on climate change solutions and has made significant changes to create a more efficient organization [5][11] - Plans to scale up in Battery Materials and expand capacity in Fuel Cells are underway [7][8] - The company aims to deliver annualized savings of around £225 million by the end of fiscal year 2022-2023 [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through the challenging period and highlighted a strong recovery in the automotive sector, particularly in China [4][5] - The company expects a materially stronger second half compared to the first half, despite uncertainties [34] Other Important Information - The Board approved an interim dividend of £0.20 per share, with a commitment to return to pre-COVID levels when circumstances permit [25] - The company has maintained a strong balance sheet with access to £1.8 billion of liquidity [33] Q&A Session Summary Question: Details on eLNO capacity and customer engagement - Management expressed confidence in the need for additional capacity based on market opportunity and positive customer testing [62][63] Question: Green hydrogen engagement and CapEx requirements - Management confirmed ongoing engagement with key electrolyzer players and indicated that expansion costs would be in the tens of millions rather than hundreds [65] Question: Clarification on return targets for eLNO - Management clarified that the 10% to 15% return on invested capital is expected for the entire business, with the second plant moving towards that target [66][67] Question: Value uplift in Clean Air and CapEx plans - Management indicated that they are about one-third of the way through value uplift in light-duty vehicles in China and discussed future CapEx plans [72][86]