UK Markets closed

Why Johnson Matthey Plc (LON:JMAT) Is An Attractive Investment To Consider

Simply Wall St

I've been keeping an eye on Johnson Matthey Plc (LON:JMAT) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe JMAT has a lot to offer. Basically, 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 strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that JMAT manages its cash and cost levels well, which is a key 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, September 17th 2019

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, September 17th 2019

Next Steps:

For Johnson Matthey, I've put together three relevant factors you should further research:

  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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.