MATERION CORP (MTRN) Stock Fundamental Analysis
USA - NYSE:MTRN - US5766901012 - Common Stock
119.43 USD
+1.44 (+1.22%)
119.43 USD
0 (0%)
Taking everything into account, MTRN scores 5 out of 10 in our fundamental rating. MTRN was compared to 156 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
In the past year MTRN was profitable.
In the past year MTRN had a positive cash flow from operations.
In the past 5 years MTRN has always been profitable.
In the past 5 years MTRN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.94%, MTRN is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
With a decent Return On Equity value of 1.79%, MTRN is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.94%, MTRN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MTRN is significantly below the industry average of 12.88%.
The last Return On Invested Capital (5.94%) for MTRN is above the 3 year average (5.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.79% | ||
| ROIC | 5.94% |
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 has a Profit Margin of 0.94%. This is in the better half of the industry: MTRN outperforms 61.54% of its industry peers.
MTRN's Profit Margin has declined in the last couple of years.
MTRN's Operating Margin of 8.10% is fine compared to the rest of the industry. MTRN outperforms 64.10% of its industry peers.
MTRN's Operating Margin has improved in the last couple of years.
MTRN has a Gross Margin of 19.28%. This is comparable to the rest of the industry: MTRN outperforms 57.69% of its industry peers.
In the last couple of years the Gross Margin of MTRN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 0.94% | ||
| GM | 19.28% |
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
The number of shares outstanding for MTRN has been increased compared to 5 years ago.
The debt/assets ratio for MTRN is higher compared to a year ago.
2.2 Solvency
MTRN has an Altman-Z score of 4.08. This indicates that MTRN is financially healthy and has little risk of bankruptcy at the moment.
MTRN has a better Altman-Z score (4.08) than 60.90% of its industry peers.
The Debt to FCF ratio of MTRN is 5.52, which is a neutral value as it means it would take MTRN, 5.52 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.52, MTRN is doing good in the industry, outperforming 69.87% of the companies in the same industry.
MTRN has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
MTRN's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. MTRN is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.64
WACC9.23%
2.3 Liquidity
MTRN has a Current Ratio of 3.17. This indicates that MTRN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.17, MTRN is in the better half of the industry, outperforming 64.74% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that MTRN should not have too much problems paying its short term obligations.
MTRN has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.25 |
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.
The Revenue has been growing slightly by 5.52% 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)3.02%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%-3.52%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.36%
3.2 Future
MTRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y5.15%
EPS Next 2Y10.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.08%
Revenue Next 2Y5.42%
Revenue Next 3YN/A
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 stable.
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
Based on the Price/Earnings ratio of 21.87, the valuation of MTRN can be described as rather expensive.
MTRN's Price/Earnings ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 79.49% of the companies in the same industry.
MTRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
MTRN is valuated rather expensively with a Price/Forward Earnings ratio of 18.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTRN is on the same level as its industry peers.
MTRN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 64.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTRN is valued a bit cheaper than the industry average as 76.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.11 | ||
| EV/EBITDA | 13.7 |
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.
MTRN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.25
PEG (5Y)2.02
EPS Next 2Y10.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, MTRN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, MTRN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.46, MTRN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of MTRN has a limited annual growth rate of 4.08%.
MTRN has paid a dividend for at least 10 years, which is 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 69.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MTRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.4%
EPS Next 2Y10.2%
EPS Next 3YN/A
119.43
+1.44 (+1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners93.43%
Inst Owner Change-2.44%
Ins Owners1.35%
Ins Owner Change-0.18%
Market Cap2.48B
Analysts82.22
Price Target126.48 (5.9%)
Short Float %2.58%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.54
Dividend Growth(5Y)4.08%
DP69.4%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.71%
Min EPS beat(2)4.12%
Max EPS beat(2)17.3%
EPS beat(4)3
Avg EPS beat(4)6.17%
Min EPS beat(4)-1.68%
Max EPS beat(4)17.3%
EPS beat(8)4
Avg EPS beat(8)3.21%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)9
Avg EPS beat(16)3.59%
Revenue beat(2)2
Avg Revenue beat(2)4.08%
Min Revenue beat(2)3.34%
Max Revenue beat(2)4.82%
Revenue beat(4)3
Avg Revenue beat(4)2.46%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)4.82%
Revenue beat(8)3
Avg Revenue beat(8)0.27%
Revenue beat(12)3
Avg Revenue beat(12)-1.94%
Revenue beat(16)5
Avg Revenue beat(16)-1.81%
PT rev (1m)3.33%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.03%
EPS NY rev (1m)0%
EPS NY rev (3m)10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 18.42 | ||
| P/S | 1.43 | ||
| P/FCF | 31.11 | ||
| P/OCF | 16.87 | ||
| P/B | 2.72 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 13.7 |
EPS(TTM)5.46
EY4.57%
EPS(NY)6.48
Fwd EY5.43%
FCF(TTM)3.84
FCFY3.21%
OCF(TTM)7.08
OCFY5.93%
SpS83.24
BVpS43.93
TBVpS25.92
PEG (NY)4.25
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.79% | ||
| ROCE | 9.26% | ||
| ROIC | 5.94% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 7.98% | ||
| OM | 8.1% | ||
| PM (TTM) | 0.94% | ||
| GM | 19.28% | ||
| FCFM | 4.61% |
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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 95.96% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.98% | ||
| Profit Quality | 488.81% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.08 |
F-Score5
WACC9.23%
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 Y5.15%
EPS Next 2Y10.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.36%
Revenue Next Year4.08%
Revenue Next 2Y5.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.22%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year53.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.15%
FCF growth 3YN/A
FCF growth 5Y-37.36%
OCF growth 1Y-11.1%
OCF growth 3Y-0.89%
OCF growth 5Y-2.41%