MATERION CORP (MTRN) Stock Fundamental Analysis
NYSE:MTRN - US5766901012 - Common Stock
110.96 USD
+2.34 (+2.15%)
110.96 USD
0 (0%)
Overall MTRN gets a fundamental rating of 5 out of 10. We evaluated MTRN against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MTRN was profitable.
MTRN had a positive operating cash flow in the past year.
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
MTRN has a Return On Assets of 0.94%. This is in the better half of the industry: MTRN outperforms 61.54% of its industry peers.
The Return On Equity of MTRN (1.79%) is better than 61.54% of its industry peers.
MTRN has a Return On Invested Capital of 5.94%. This is in the better half of the industry: MTRN outperforms 66.67% 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 13.00%.
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
With a decent Profit Margin value of 0.94%, MTRN is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of MTRN has declined.
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.
The Gross Margin of MTRN (19.28%) 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 | 8.1% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTRN is destroying value.
MTRN has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.94 indicates that MTRN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.94, MTRN is doing good in the industry, outperforming 66.03% of the companies in the same industry.
MTRN has a debt to FCF ratio of 5.52. This is a neutral value as MTRN would need 5.52 years to pay back of all of its debts.
The Debt to FCF ratio of MTRN (5.52) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MTRN is not too dependend on debt financing.
The Debt to Equity ratio of MTRN (0.46) is worse than 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.6
WACC9.97%
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.
MTRN has a better Current ratio (3.17) than 65.38% of its industry peers.
A Quick Ratio of 1.25 indicates that MTRN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, MTRN perfoms like the industry average, outperforming 44.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.02% over the past year.
MTRN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
The Revenue has been growing slightly by 5.52% in the past 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)5.52%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%1.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 20.32, which indicates a rather expensive current valuation of MTRN.
80.13% of the companies in the same industry are more expensive than MTRN, based on the Price/Earnings ratio.
MTRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 17.11, MTRN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 62.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. MTRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.11 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 62.82% 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 74.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.9 | ||
| EV/EBITDA | 12.77 |
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)3.94
PEG (5Y)1.87
EPS Next 2Y10.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTRN has a yearly dividend return of 0.50%, which is pretty low.
Compared to an average industry Dividend Yield of 2.67, MTRN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.50, MTRN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
MTRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.4%
EPS Next 2Y10.2%
EPS Next 3YN/A
110.96
+2.34 (+2.15%)
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 Change0.23%
Market Cap2.30B
Analysts82.22
Price Target126.48 (13.99%)
Short Float %2.39%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)2.27%
EPS NQ rev (1m)12.6%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)11.1%
EPS NY rev (3m)10.01%
Revenue NQ rev (1m)5.78%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)5.31%
Revenue NY rev (3m)6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.11 | ||
| P/S | 1.33 | ||
| P/FCF | 28.9 | ||
| P/OCF | 15.67 | ||
| P/B | 2.53 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)5.46
EY4.92%
EPS(NY)6.48
Fwd EY5.84%
FCF(TTM)3.84
FCFY3.46%
OCF(TTM)7.08
OCFY6.38%
SpS83.24
BVpS43.93
TBVpS25.92
PEG (NY)3.94
PEG (5Y)1.87
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 | 3.94 |
F-Score5
WACC9.97%
ROIC/WACC0.6
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%