Johnson MattheyJMPLY 68 Operating Margin % is 2.74% as of Mar. 2026, which is 17% below its 10-year median of 3.29. GuruFocus rates JMPLY with a GF Score™ of 68/100 and a GF Value™ of $43.18 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,584 Chemicals companies, Johnson Matthey ranks worse than 67.87% on this metric.
Johnson Matthey (OTCPK:JMPLY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Johnson Matthey Operating Margin % Related Terms
Johnson Matthey Operating Margin % Historical Data
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The historical data trend for Johnson Matthey's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JMPLY vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Johnson Matthey's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Johnson Matthey Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Johnson Matthey's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Johnson Matthey's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Johnson Matthey's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Johnson Matthey (JMPLY) has a Operating Margin % of 2.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Johnson Matthey and its competitors. This is 17% below median its historical median of 3.29. Over the past decade, Johnson Matthey's Operating Margin % has ranged from 2.70 to 5.21. According to the industry distribution chart, Johnson Matthey ranks #1075 out of 1584 companies in the Chemicals industry, placing it in the top 67.9%.
Is Johnson Matthey's Operating Margin % too high?
Johnson Matthey's current Operating Margin % of 2.74% is 17% below median its 10-year median of 3.29. Over the past 10 years, this metric has ranged from a low of 2.70 to a high of 5.21. The Chemicals industry median Operating Margin % is 6.03. Johnson Matthey's value of 2.74% is 54.5% below this industry median. Based on the distribution chart, Johnson Matthey ranks #1075 out of 1584 companies in the Chemicals industry, which is below the industry midpoint. Overall, Johnson Matthey has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Matthey's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Johnson Matthey ranks #1075 out of 1584 companies for Operating Margin %. This places Johnson Matthey in the lower half of its industry. The industry median Operating Margin % is 6.03. Johnson Matthey's value of 2.74% is 54.5% below this benchmark. Historically, Johnson Matthey's own Operating Margin % has ranged from 2.70 to 5.21 over the past decade. While the company's 10-year median is 3.29 vs. the industry median of 6.03, Johnson Matthey has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson Matthey's current Operating Margin % of 2.74% is 54.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Johnson Matthey and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson Matthey's current Operating Margin % is 2.74%, which is 17% below median its own 10-year median of 3.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Matthey stock overvalued right now?
Based on GuruFocus' analysis, Johnson Matthey (JMPLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $43.18, compared to a current price of $54.97 — trading 27.3% above its estimated fair value. The current Operating Margin % is 2.74%, which is 17% below median its 10-year median of 3.29 and 54.5% below the Chemicals industry median of 6.03. Johnson Matthey's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Johnson Matthey (JMPLY), the current Operating Margin % is 2.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson Matthey (JMPLY) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Matthey stock appears to be overvalued.
The current stock price of $54.97 is trading 27.3% above its estimated GF Value™ of $43.18.
GuruFocus considers Johnson Matthey to be Modestly Overvalued.
Key valuation signals for JMPLY:
Operating Margin %: 2.74% (17% below median its 10-year median of 3.29)
GF Value™: $43.18 vs. price of $54.97 (27.3% above fair value)
Industry Position: 54.5% below the Chemicals median (#1075 of 1584)
No single metric tells the full story. See the JMPLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Matthey PLC is a platinum group metals (PGMs) company. It uses metal chemistry, catalysis, and process engineering and provides technology and expertise to energy, chemicals, and automotive companies to decarbonise, reduce harmful emissions, and improve sustainability. Its segments include Clean Air, PGM Services, Catalyst Technologies, Hydrogen Technologies and Value Businesses. The company generates maximum revenue from the PGM Services segment, which enables the energy transition through providing circular solutions as demand for scarce critical materials increases, provides a strategic service to the group supporting the other segments with security of metal supply, and manufactures value-added PGM products. The company derives key revenue from the United Kingdom.
68GF Score
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