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MATERION CORP (MTRN) Stock Fundamental Analysis

NYSE:MTRN - New York Stock Exchange, Inc. - US5766901012 - Common Stock

101.08  +1.55 (+1.56%)

After market: 101.08 0 (0%)

Fundamental Rating

5

MTRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. While MTRN has a great profitability rating, there are some minor concerns on its financial health. MTRN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year MTRN was profitable.
In the past year MTRN had a positive cash flow from operations.
Each year in the past 5 years MTRN has been profitable.
In the past 5 years MTRN always reported a positive cash flow from operatings.
MTRN Yearly Net Income VS EBIT VS OCF VS FCFMTRN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

1.2 Ratios

The Return On Assets of MTRN (4.00%) is better than 73.47% of its industry peers.
MTRN's Return On Equity of 7.96% is fine compared to the rest of the industry. MTRN outperforms 73.47% of its industry peers.
The Return On Invested Capital of MTRN (6.49%) is better than 69.39% of its industry peers.
MTRN had an Average Return On Invested Capital over the past 3 years of 6.88%. This is in line with the industry average of 8.76%.
Industry RankSector Rank
ROA 4%
ROE 7.96%
ROIC 6.49%
ROA(3y)5.01%
ROA(5y)4.49%
ROE(3y)10.54%
ROE(5y)8.45%
ROIC(3y)6.88%
ROIC(5y)6.56%
MTRN Yearly ROA, ROE, ROICMTRN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

MTRN has a Profit Margin of 4.45%. This is in the better half of the industry: MTRN outperforms 71.43% of its industry peers.
MTRN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.24%, MTRN is doing good in the industry, outperforming 60.54% of the companies in the same industry.
In the last couple of years the Operating Margin of MTRN has grown nicely.
MTRN has a Gross Margin (18.74%) which is in line with its industry peers.
MTRN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.24%
PM (TTM) 4.45%
GM 18.74%
OM growth 3Y52.83%
OM growth 5Y7.98%
PM growth 3Y63.39%
PM growth 5Y27.01%
GM growth 3Y8.58%
GM growth 5Y0.14%
MTRN Yearly Profit, Operating, Gross MarginsMTRN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTRN is destroying value.
The number of shares outstanding for MTRN has been increased compared to 1 year ago.
Compared to 5 years ago, MTRN has more shares outstanding
Compared to 1 year ago, MTRN has an improved debt to assets ratio.
MTRN Yearly Shares OutstandingMTRN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
MTRN Yearly Total Debt VS Total AssetsMTRN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 3.50 indicates that MTRN is not in any danger for bankruptcy at the moment.
MTRN has a better Altman-Z score (3.50) than 61.90% of its industry peers.
MTRN has a Debt/Equity ratio of 0.51. This is a neutral value indicating MTRN is somewhat dependend on debt financing.
The Debt to Equity ratio of MTRN (0.51) is worse than 78.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 3.5
ROIC/WACC0.56
WACC11.55%
MTRN Yearly LT Debt VS Equity VS FCFMTRN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 3.15 indicates that MTRN has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.15, MTRN is doing good in the industry, outperforming 64.63% of the companies in the same industry.
MTRN has a Quick Ratio of 1.26. This is a normal value and indicates that MTRN is financially healthy and should not expect problems in meeting its short term obligations.
MTRN's Quick ratio of 1.26 is in line compared to the rest of the industry. MTRN outperforms 42.18% of its industry peers.
Industry RankSector Rank
Current Ratio 3.15
Quick Ratio 1.26
MTRN Yearly Current Assets VS Current LiabilitesMTRN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

MTRN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.09%.
MTRN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.83% yearly.
Looking at the last year, MTRN shows a decrease in Revenue. The Revenue has decreased by -0.59% in the last year.
The Revenue has been growing slightly by 6.63% on average over the past years.
EPS 1Y (TTM)-9.09%
EPS 3Y37.49%
EPS 5Y18.83%
EPS Q2Q%-6.62%
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y12.28%
Revenue growth 5Y6.63%
Sales Q2Q%8.35%

3.2 Future

Based on estimates for the next years, MTRN will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y-5.02%
EPS Next 2Y4.65%
EPS Next 3Y7.53%
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y3.64%
Revenue Next 3Y5.08%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MTRN Yearly Revenue VS EstimatesMTRN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
MTRN Yearly EPS VS EstimatesMTRN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.44 indicates a rather expensive valuation of MTRN.
Based on the Price/Earnings ratio, MTRN is valued a bit cheaper than 68.03% of the companies in the same industry.
MTRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
The Price/Forward Earnings ratio is 16.36, which indicates a correct valuation of MTRN.
MTRN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.11. MTRN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.44
Fwd PE 16.36
MTRN Price Earnings VS Forward Price EarningsMTRN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

MTRN's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.82
MTRN Per share dataMTRN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

The decent profitability rating of MTRN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y4.65%
EPS Next 3Y7.53%

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6

5. Dividend

5.1 Amount

MTRN has a yearly dividend return of 0.54%, which is pretty low.
MTRN's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.29, MTRN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.54%

5.2 History

The dividend of MTRN has a limited annual growth rate of 4.37%.
MTRN has been paying a dividend for at least 10 years, so it has a reliable track record.
MTRN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.37%
Div Incr Years12
Div Non Decr Years12
MTRN Yearly Dividends per shareMTRN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

14.84% of the earnings are spent on dividend by MTRN. This is a low number and sustainable payout ratio.
MTRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.84%
EPS Next 2Y4.65%
EPS Next 3Y7.53%
MTRN Yearly Income VS Free CF VS DividendMTRN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M
MTRN Dividend Payout.MTRN Dividend Payout, showing the Payout Ratio.MTRN Dividend Payout.PayoutRetained Earnings

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MATERION CORP

NYSE:MTRN (1/17/2025, 8:16:26 PM)

After market: 101.08 0 (0%)

101.08

+1.55 (+1.56%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners95.73%
Inst Owner Change-0.28%
Ins Owners1.21%
Ins Owner Change-8.51%
Market Cap2.10B
Analysts82
Price Target136.43 (34.97%)
Short Float %1.84%
Short Ratio3.84
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend0.52
Dividend Growth(5Y)4.37%
DP14.84%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.91%
Min EPS beat(2)-1.68%
Max EPS beat(2)-0.13%
EPS beat(4)0
Avg EPS beat(4)-1.31%
Min EPS beat(4)-1.76%
Max EPS beat(4)-0.13%
EPS beat(8)3
Avg EPS beat(8)1.61%
EPS beat(12)5
Avg EPS beat(12)0.19%
EPS beat(16)9
Avg EPS beat(16)5.96%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)2.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.82%
Revenue beat(8)1
Avg Revenue beat(8)-2.89%
Revenue beat(12)2
Avg Revenue beat(12)-3.11%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)-0.93%
PT rev (3m)-8.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.38%
Valuation
Industry RankSector Rank
PE 19.44
Fwd PE 16.36
P/S 1.26
P/FCF N/A
P/OCF 29.34
P/B 2.25
P/tB 4.31
EV/EBITDA 13.82
EPS(TTM)5.2
EY5.14%
EPS(NY)6.18
Fwd EY6.11%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)3.44
OCFY3.41%
SpS80.43
BVpS44.91
TBVpS23.44
PEG (NY)N/A
PEG (5Y)1.03
Profitability
Industry RankSector Rank
ROA 4%
ROE 7.96%
ROCE 7.54%
ROIC 6.49%
ROICexc 6.56%
ROICexgc 9.12%
OM 7.24%
PM (TTM) 4.45%
GM 18.74%
FCFM N/A
ROA(3y)5.01%
ROA(5y)4.49%
ROE(3y)10.54%
ROE(5y)8.45%
ROIC(3y)6.88%
ROIC(5y)6.56%
ROICexc(3y)6.95%
ROICexc(5y)6.99%
ROICexgc(3y)10.21%
ROICexgc(5y)9.44%
ROCE(3y)8%
ROCE(5y)7.62%
ROICexcg growth 3Y50.78%
ROICexcg growth 5Y-0.83%
ROICexc growth 3Y45.19%
ROICexc growth 5Y-4.39%
OM growth 3Y52.83%
OM growth 5Y7.98%
PM growth 3Y63.39%
PM growth 5Y27.01%
GM growth 3Y8.58%
GM growth 5Y0.14%
F-Score2
Asset Turnover0.9
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Debt/EBITDA 2.52
Cap/Depr 130.03%
Cap/Sales 5.18%
Interest Coverage 250
Cash Conversion 38.16%
Profit Quality N/A
Current Ratio 3.15
Quick Ratio 1.26
Altman-Z 3.5
F-Score2
WACC11.55%
ROIC/WACC0.56
Cap/Depr(3y)191.04%
Cap/Depr(5y)159.26%
Cap/Sales(3y)6.14%
Cap/Sales(5y)5.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.09%
EPS 3Y37.49%
EPS 5Y18.83%
EPS Q2Q%-6.62%
EPS Next Y-5.02%
EPS Next 2Y4.65%
EPS Next 3Y7.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y12.28%
Revenue growth 5Y6.63%
Sales Q2Q%8.35%
Revenue Next Year1.06%
Revenue Next 2Y3.64%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
EBIT growth 1Y-20.51%
EBIT growth 3Y71.6%
EBIT growth 5Y15.15%
EBIT Next Year40.49%
EBIT Next 3Y20.28%
EBIT Next 5YN/A
FCF growth 1Y-438.73%
FCF growth 3Y-10.12%
FCF growth 5Y-10.23%
OCF growth 1Y-14.81%
OCF growth 3Y12.62%
OCF growth 5Y13.58%