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 157 industry peers in the Metals & Mining industry. MTRN has only an average score on both its financial health and profitability. MTRN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MTRN had positive earnings in the past year.
MTRN had a positive operating cash flow in the past year.
MTRN had positive earnings in each of the past 5 years.
Each year in the past 5 years MTRN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.58%, MTRN perfoms like the industry average, outperforming 58.60% of the companies in the same industry.
MTRN has a Return On Equity of 1.15%. This is comparable to the rest of the industry: MTRN outperforms 59.87% of its industry peers.
The Return On Invested Capital of MTRN (5.98%) is better than 67.52% of its industry peers.
MTRN had an Average Return On Invested Capital over the past 3 years of 5.88%. This is significantly below the industry average of 11.75%.
The 3 year average ROIC (5.88%) for MTRN is below the current ROIC(5.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.15% | ||
| ROIC | 5.98% |
ROA(3y)3.62%
ROA(5y)3.37%
ROE(3y)7.41%
ROE(5y)6.93%
ROIC(3y)5.88%
ROIC(5y)4.63%
1.3 Margins
MTRN's Profit Margin of 0.59% is in line compared to the rest of the industry. MTRN outperforms 59.87% of its industry peers.
In the last couple of years the Profit Margin of MTRN has declined.
MTRN's Operating Margin of 8.05% is fine compared to the rest of the industry. MTRN outperforms 63.06% of its industry peers.
In the last couple of years the Operating Margin of MTRN has grown nicely.
MTRN has a Gross Margin (19.24%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MTRN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 0.59% | ||
| GM | 19.24% |
OM growth 3Y15.39%
OM growth 5Y1.69%
PM growth 3Y-58.24%
PM growth 5Y-40.03%
GM growth 3Y0.99%
GM growth 5Y-2.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTRN is destroying value.
Compared to 1 year ago, MTRN has more shares outstanding
Compared to 5 years ago, MTRN has more shares outstanding
MTRN has a worse debt/assets ratio than last year.
2.2 Solvency
MTRN has an Altman-Z score of 3.79. This indicates that MTRN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, MTRN is doing good in the industry, outperforming 66.24% of the companies in the same industry.
MTRN has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as MTRN would need 11.06 years to pay back of all of its debts.
MTRN's Debt to FCF ratio of 11.06 is fine compared to the rest of the industry. MTRN outperforms 64.33% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MTRN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, MTRN is doing worse than 76.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.64
WACC9.27%
2.3 Liquidity
MTRN has a Current Ratio of 2.84. This indicates that MTRN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.84, MTRN perfoms like the industry average, outperforming 59.87% of the companies in the same industry.
MTRN has a Quick Ratio of 1.20. This is a normal value and indicates that MTRN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.20, MTRN is doing worse than 61.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
MTRN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.02%.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
Looking at the last year, MTRN shows a small growth in Revenue. The Revenue has grown by 1.17% in the last year.
The Revenue has been growing slightly by 7.28% on average over the past years.
EPS 1Y (TTM)3.02%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%-3.52%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.36%
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 4.64% on average per year.
MTRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y-5.35%
EPS Next 2Y4.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y2.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.24, MTRN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 75.80% of the companies listed in the same industry.
MTRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of MTRN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTRN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.21. MTRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
61.15% of the companies in the same industry are more expensive than MTRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MTRN is valued a bit cheaper than 68.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.11 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y4.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, MTRN is not a good candidate for dividend investing.
MTRN's Dividend Yield is a higher than the industry average which is at 2.92.
Compared to an average S&P500 Dividend Yield of 2.39, MTRN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of MTRN has a limited annual growth rate of 4.08%.
MTRN has been paying a dividend for at least 10 years, so it has a reliable track record.
MTRN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.08%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
110.03% of the earnings are spent on dividend by MTRN. This is not a sustainable payout ratio.
MTRN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP110.03%
EPS Next 2Y4.64%
EPS Next 3YN/A
105.07
-0.23 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.65%
Inst Owner Change-4.73%
Ins Owners1.35%
Ins Owner Change6.35%
Market Cap2.19B
Analysts80
Price Target122.4 (16.49%)
Short Float %1.92%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.54
Dividend Growth(5Y)4.08%
DP110.03%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)4.12%
Max EPS beat(2)4.95%
EPS beat(4)2
Avg EPS beat(4)1.81%
Min EPS beat(4)-1.68%
Max EPS beat(4)4.95%
EPS beat(8)3
Avg EPS beat(8)0.96%
EPS beat(12)6
Avg EPS beat(12)1.01%
EPS beat(16)9
Avg EPS beat(16)3.26%
Revenue beat(2)1
Avg Revenue beat(2)1.1%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)3.34%
Revenue beat(4)2
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)3.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.72%
Revenue beat(12)2
Avg Revenue beat(12)-2.68%
Revenue beat(16)5
Avg Revenue beat(16)-1.75%
PT rev (1m)0%
PT rev (3m)-1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.27 | ||
| P/FCF | 52.11 | ||
| P/OCF | 18.67 | ||
| P/B | 2.46 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)5.46
EY5.2%
EPS(NY)5.85
Fwd EY5.57%
FCF(TTM)2.02
FCFY1.92%
OCF(TTM)5.63
OCFY5.36%
SpS82.64
BVpS42.67
TBVpS24.83
PEG (NY)N/A
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.15% | ||
| ROCE | 9.32% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.04% | ||
| ROICexgc | 8.08% | ||
| OM | 8.05% | ||
| PM (TTM) | 0.59% | ||
| GM | 19.24% | ||
| FCFM | 2.44% |
ROA(3y)3.62%
ROA(5y)3.37%
ROE(3y)7.41%
ROE(5y)6.93%
ROIC(3y)5.88%
ROIC(5y)4.63%
ROICexc(3y)5.94%
ROICexc(5y)4.68%
ROICexgc(3y)8.43%
ROICexgc(5y)6.66%
ROCE(3y)9.17%
ROCE(5y)7.21%
ROICexcg growth 3Y13.12%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y17.84%
ROICexc growth 5Y-7.11%
OM growth 3Y15.39%
OM growth 5Y1.69%
PM growth 3Y-58.24%
PM growth 5Y-40.03%
GM growth 3Y0.99%
GM growth 5Y-2.68%
F-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 108.89% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.45% | ||
| Profit Quality | 412.29% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.79 |
F-Score5
WACC9.27%
ROIC/WACC0.64
Cap/Depr(3y)152.48%
Cap/Depr(5y)169.9%
Cap/Sales(3y)5.47%
Cap/Sales(5y)5.79%
Profit Quality(3y)63.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.02%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%-3.52%
EPS Next Y-5.35%
EPS Next 2Y4.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.36%
Revenue Next Year-1.17%
Revenue Next 2Y2.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.65%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year49.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.42%
FCF growth 3YN/A
FCF growth 5Y-37.36%
OCF growth 1Y-30.45%
OCF growth 3Y-0.89%
OCF growth 5Y-2.41%