MATERION CORP (MTRN) Stock Fundamental Analysis
NYSE:MTRN - New York Stock Exchange, Inc. - US5766901012 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MTRN. MTRN was compared to 154 industry peers in the Metals & Mining industry. MTRN has an average financial health and profitability rating. MTRN is valued correctly, 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.
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
With a Return On Assets value of 0.58%, MTRN perfoms like the industry average, outperforming 55.84% of the companies in the same industry.
MTRN has a Return On Equity (1.15%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 5.98%, MTRN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
MTRN had an Average Return On Invested Capital over the past 3 years of 5.88%. This is below the industry average of 8.83%.
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
With a Profit Margin value of 0.59%, MTRN perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
MTRN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.05%, MTRN is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
MTRN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.24%, MTRN perfoms like the industry average, outperforming 53.90% of the companies in the same 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
MTRN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTRN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.38 indicates that MTRN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.38, MTRN is doing good in the industry, outperforming 62.34% of the companies in the same industry.
The Debt to FCF ratio of MTRN is 11.06, which is on the high side as it means it would take MTRN, 11.06 years of fcf income to pay off all of its debts.
MTRN's Debt to FCF ratio of 11.06 is fine compared to the rest of the industry. MTRN outperforms 62.99% 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 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.61
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.84 indicates that MTRN has no problem at all paying its short term obligations.
The Current ratio of MTRN (2.84) is better than 62.99% of its industry peers.
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.
MTRN has a Quick ratio (1.20) which is in line with its industry peers.
| 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 4.75%.
MTRN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
MTRN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.95%.
MTRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.28% yearly.
EPS 1Y (TTM)4.75%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%17.71%
Revenue 1Y (TTM)6.95%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%9.1%
3.2 Future
MTRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
The Revenue is expected to grow by 2.42% on average over the next years.
EPS Next Y-4.42%
EPS Next 2Y5.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.81%
Revenue Next 2Y2.42%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.93, which indicates a correct valuation of MTRN.
Based on the Price/Earnings ratio, MTRN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, MTRN is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.94 indicates a correct valuation of MTRN.
Based on the Price/Forward Earnings ratio, MTRN is valued a bit cheaper than the industry average as 66.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, MTRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTRN is valued a bit cheaper than 64.94% 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 67.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.06 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y5.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTRN has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, MTRN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, MTRN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
110.03% of the earnings are spent on dividend by MTRN. This is not a sustainable payout ratio.
The dividend of MTRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.03%
EPS Next 2Y5.4%
EPS Next 3YN/A
76.75
-3.63 (-4.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.35%
Inst Owner Change1.31%
Ins Owners1.23%
Ins Owner Change5.63%
Market Cap1.60B
Analysts82
Price Target123.68 (61.15%)
Short Float %2.18%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-5.83%
PT rev (3m)-8.49%
EPS NQ rev (1m)-7.19%
EPS NQ rev (3m)-21.73%
EPS NY rev (1m)-9.28%
EPS NY rev (3m)-16.38%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)-6.48%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-7.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.94 | ||
| P/S | 0.93 | ||
| P/FCF | 38.06 | ||
| P/OCF | 13.64 | ||
| P/B | 1.8 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 9.86 |
EPS(TTM)5.51
EY7.18%
EPS(NY)5.93
Fwd EY7.73%
FCF(TTM)2.02
FCFY2.63%
OCF(TTM)5.63
OCFY7.33%
SpS82.64
BVpS42.67
TBVpS24.83
PEG (NY)N/A
PEG (5Y)1.28
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 | 3.38 |
F-Score5
WACC9.84%
ROIC/WACC0.61
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)4.75%
EPS 3Y11.91%
EPS 5Y10.85%
EPS Q2Q%17.71%
EPS Next Y-4.42%
EPS Next 2Y5.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.95%
Revenue growth 3Y3.7%
Revenue growth 5Y7.28%
Sales Q2Q%9.1%
Revenue Next Year-1.81%
Revenue Next 2Y2.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.65%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year59.78%
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%