MATERION CORP (MTRN) Stock Fundamental Analysis
NYSE:MTRN - New York Stock Exchange, Inc. - US5766901012 - Common Stock - Currency: USD
MTRN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. Both the profitability and the financial health of MTRN get a neutral evaluation. Nothing too spectacular is happening here. MTRN has a valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years MTRN 4 years were profitable.
MTRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MTRN's Return On Assets of 4.00% is fine compared to the rest of the industry. MTRN outperforms 73.43% of its industry peers.
With a decent Return On Equity value of 7.96%, MTRN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
MTRN's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. MTRN outperforms 68.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTRN is in line with the industry average of 8.84%.
| Industry Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 4.45%, MTRN is doing good in the industry, outperforming 71.33% of the companies in the same industry.
MTRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.24%, MTRN is in line with its industry, outperforming 58.74% of the companies in the same industry.
MTRN's Operating Margin has improved in the last couple of years.
MTRN has a Gross Margin (18.74%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MTRN has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
MTRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MTRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.49 indicates that MTRN is not in any danger for bankruptcy at the moment.
MTRN has a Altman-Z score of 3.49. This is in the better half of the industry: MTRN outperforms 60.84% 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.
MTRN's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. MTRN is outperformed by 77.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.49 |
ROIC/WACC0.6
WACC10.8%
2.3 Liquidity
MTRN has a Current Ratio of 3.15. This indicates that MTRN is financially healthy and has no problem in meeting its short term obligations.
MTRN has a better Current ratio (3.15) than 65.03% of its industry peers.
A Quick Ratio of 1.26 indicates that MTRN should not have too much problems paying its short term obligations.
The Quick ratio of MTRN (1.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
MTRN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.32%.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.32%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%9.93%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.76%
3.2 Future
Based on estimates for the next years, MTRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.83% on average per year.
MTRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y14.3%
EPS Next 2Y12.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.90, the valuation of MTRN can be described as rather expensive.
Based on the Price/Earnings ratio, MTRN is valued a bit cheaper than 73.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTRN to the average of the S&P500 Index (29.63), we can say MTRN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.66, the valuation of MTRN can be described as correct.
Based on the Price/Forward Earnings ratio, MTRN is valued a bit cheaper than the industry average as 65.03% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MTRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.71 |
4.3 Compensation for Growth
MTRN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTRN has a very decent profitability rating, which may justify a higher PE ratio.
MTRN's earnings are expected to grow with 12.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.65
EPS Next 2Y12.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, MTRN is not a good candidate for dividend investing.
MTRN's Dividend Yield is comparable with the industry average which is at 3.16.
With a Dividend Yield of 0.52, MTRN pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of MTRN has a limited annual growth rate of 4.37%.
MTRN has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
MTRN pays out 14.84% of its income as dividend. This is a sustainable payout ratio.
The dividend of MTRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.84%
EPS Next 2Y12.83%
EPS Next 3YN/A
95.57
-4.52 (-4.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-31.85%
Ins Owners1.21%
Ins Owner Change-2.02%
Market Cap1.98B
Analysts82
Price Target135.15 (41.41%)
Short Float %1.8%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.52
Dividend Growth(5Y)4.37%
DP14.84%
Div Incr Years12
Div Non Decr Years12
Ex-Date
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)-6.19%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 15.66 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | 27.74 | ||
| P/B | 2.13 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 13.71 |
EPS(TTM)5.34
EY5.59%
EPS(NY)6.1
Fwd EY6.39%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)3.44
OCFY3.6%
SpS80.43
BVpS44.91
TBVpS23.44
PEG (NY)1.25
PEG (5Y)1.65
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.49 |
F-Score2
WACC10.8%
ROIC/WACC0.6
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)-5.32%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%9.93%
EPS Next Y14.3%
EPS Next 2Y12.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.76%
Revenue Next Year5.66%
Revenue Next 2Y6.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.51%
EBIT growth 3Y71.6%
EBIT growth 5Y15.15%
EBIT Next Year40.33%
EBIT Next 3Y19.48%
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%