MATERION CORP (MTRN) Stock Fundamental Analysis
USA - NYSE:MTRN - US5766901012 - Common Stock
116.11 USD
+0.97 (+0.84%)
116.11 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MTRN. MTRN was compared to 154 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MTRN had positive earnings in the past year.
In the past year MTRN had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 1.08%, MTRN is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
MTRN's Return On Equity of 2.08% is fine compared to the rest of the industry. MTRN outperforms 62.34% of its industry peers.
The Return On Invested Capital of MTRN (5.79%) is better than 66.23% 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 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 2.08% | ||
| ROIC | 5.79% |
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
The Profit Margin of MTRN (1.12%) is better than 62.99% of its industry peers.
In the last couple of years the Profit Margin of MTRN has declined.
MTRN has a Operating Margin of 8.16%. This is in the better half of the industry: MTRN outperforms 64.94% of its industry peers.
MTRN's Operating Margin has improved in the last couple of years.
MTRN has a Gross Margin (19.49%) which is comparable to the rest of the industry.
MTRN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 1.12% | ||
| GM | 19.49% |
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.
MTRN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTRN has more shares outstanding
MTRN has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MTRN is 5.77, which is a neutral value as it means it would take MTRN, 5.77 years of fcf income to pay off all of its debts.
MTRN has a better Debt to FCF ratio (5.77) than 69.48% of its industry peers.
MTRN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
MTRN's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. MTRN is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC9.05%
2.3 Liquidity
A Current Ratio of 3.28 indicates that MTRN has no problem at all paying its short term obligations.
MTRN's Current ratio of 3.28 is fine compared to the rest of the industry. MTRN outperforms 66.88% of its industry peers.
MTRN has a Quick Ratio of 1.31. This is a normal value and indicates that MTRN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MTRN (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.00% over the past year.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.88% in the past year.
MTRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.28% yearly.
EPS 1Y (TTM)5%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%0%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.85%
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 13.03% on average per year.
The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y5.02%
EPS Next 2Y9.49%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year4.78%
Revenue Next 2Y6.06%
Revenue Next 3Y7.27%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.27, which indicates a rather expensive current valuation of MTRN.
Compared to the rest of the industry, the Price/Earnings ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 77.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, MTRN is valued at the same level.
The Price/Forward Earnings ratio is 18.14, which indicates a rather expensive current valuation of MTRN.
MTRN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MTRN to the average of the S&P500 Index (32.68), we can say MTRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 61.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 76.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.5 | ||
| EV/EBITDA | 13.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTRN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MTRN may justify a higher PE ratio.
A more expensive valuation may be justified as MTRN's earnings are expected to grow with 13.03% in the coming years.
PEG (NY)4.24
PEG (5Y)1.96
EPS Next 2Y9.49%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
MTRN has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 2.65, MTRN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.48, MTRN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
MTRN pays out 58.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
MTRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.77%
EPS Next 2Y9.49%
EPS Next 3Y13.03%
116.11
+0.97 (+0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-0.56%
Ins Owners1.34%
Ins Owner Change-0.18%
Market Cap2.41B
Revenue(TTM)1.73B
Net Income(TTM)19.40M
Analysts82
Price Target134.64 (15.96%)
Short Float %2.7%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.54
Dividend Growth(5Y)4.08%
DP58.77%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.6%
Min EPS beat(2)-2.1%
Max EPS beat(2)17.3%
EPS beat(4)3
Avg EPS beat(4)6.07%
Min EPS beat(4)-2.1%
Max EPS beat(4)17.3%
EPS beat(8)3
Avg EPS beat(8)2.38%
EPS beat(12)6
Avg EPS beat(12)3.1%
EPS beat(16)8
Avg EPS beat(16)1.66%
Revenue beat(2)1
Avg Revenue beat(2)1.67%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)4.82%
Revenue beat(4)2
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)4.82%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)3
Avg Revenue beat(12)-1.46%
Revenue beat(16)4
Avg Revenue beat(16)-1.99%
PT rev (1m)6.45%
PT rev (3m)10%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)17.18%
EPS NY rev (1m)0.05%
EPS NY rev (3m)11.16%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)8.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.14 | ||
| P/S | 1.39 | ||
| P/FCF | 29.5 | ||
| P/OCF | 15.05 | ||
| P/B | 2.58 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)5.46
EY4.7%
EPS(NY)6.4
Fwd EY5.51%
FCF(TTM)3.94
FCFY3.39%
OCF(TTM)7.72
OCFY6.65%
SpS83.63
BVpS45.08
TBVpS26.34
PEG (NY)4.24
PEG (5Y)1.96
Graham Number74.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 2.08% | ||
| ROCE | 9.02% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.85% | ||
| ROICexgc | 7.8% | ||
| OM | 8.16% | ||
| PM (TTM) | 1.12% | ||
| GM | 19.49% | ||
| FCFM | 4.71% |
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%
ROICexgc growth 3Y13.12%
ROICexgc 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-Score6
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.77 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 113.72% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.05% | ||
| Profit Quality | 420.55% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | N/A |
F-Score6
WACC9.05%
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)5%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%0%
EPS Next Y5.02%
EPS Next 2Y9.49%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)3.88%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.85%
Revenue Next Year4.78%
Revenue Next 2Y6.06%
Revenue Next 3Y7.27%
Revenue Next 5YN/A
EBIT growth 1Y16.96%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year56.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.91%
FCF growth 3YN/A
FCF growth 5Y-37.36%
OCF growth 1Y-3.8%
OCF growth 3Y-0.89%
OCF growth 5Y-2.41%
MATERION CORP / MTRN FAQ
Can you provide the ChartMill fundamental rating for MATERION CORP?
ChartMill assigns a fundamental rating of 5 / 10 to MTRN.
Can you provide the valuation status for MATERION CORP?
ChartMill assigns a valuation rating of 4 / 10 to MATERION CORP (MTRN). This can be considered as Fairly Valued.
How profitable is MATERION CORP (MTRN) stock?
MATERION CORP (MTRN) has a profitability rating of 6 / 10.
What is the valuation of MATERION CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MATERION CORP (MTRN) is 21.27 and the Price/Book (PB) ratio is 2.58.
How sustainable is the dividend of MATERION CORP (MTRN) stock?
The dividend rating of MATERION CORP (MTRN) is 5 / 10 and the dividend payout ratio is 58.77%.