MATERION CORP (MTRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTRN - US5766901012 - Common Stock
128.47 USD
+1.81 (+1.43%)
128.47 USD
0 (0%)
MTRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. MTRN has an average financial health and profitability rating. MTRN is quite expensive at the moment. It does show a decent 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.
In the past 5 years MTRN has always been profitable.
Each year in the past 5 years MTRN had a positive operating cash flow.
1.2 Ratios
MTRN's Return On Assets of 1.08% is in line compared to the rest of the industry. MTRN outperforms 58.33% of its industry peers.
With a Return On Equity value of 2.08%, MTRN perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.84%, MTRN is doing good in the industry, outperforming 64.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTRN is significantly below the industry average of 13.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 2.08% | ||
| ROIC | 5.84% |
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
Looking at the Profit Margin, with a value of 1.12%, MTRN is in line with its industry, outperforming 59.62% of the companies in the same industry.
MTRN's Profit Margin has declined in the last couple of years.
MTRN has a Operating Margin of 8.19%. This is in the better half of the industry: MTRN outperforms 62.82% 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.
In the last couple of years the Gross Margin of MTRN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| 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
MTRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MTRN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTRN has more shares outstanding
The debt/assets ratio for MTRN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.16 indicates that MTRN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.16, MTRN is in line with its industry, outperforming 55.77% of the companies in the same industry.
MTRN has a debt to FCF ratio of 5.77. This is a neutral value as MTRN would need 5.77 years to pay back of all of its debts.
MTRN's Debt to FCF ratio of 5.77 is fine compared to the rest of the industry. MTRN outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that MTRN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, MTRN is doing worse than 78.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.58
WACC10.07%
2.3 Liquidity
A Current Ratio of 3.29 indicates that MTRN has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.29, MTRN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that MTRN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, MTRN is in line with its industry, outperforming 41.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
MTRN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.00%.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
MTRN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.88%.
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 Y5.21%
EPS Next 2Y9.58%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y5.97%
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 23.53, which indicates a rather expensive current valuation of MTRN.
MTRN's Price/Earnings ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 76.92% 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 26.61, which is the current average of the S&P500 Index.
MTRN is valuated rather expensively with a Price/Forward Earnings ratio of 20.04.
The rest of the industry has a similar Price/Forward Earnings ratio as MTRN.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, MTRN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 64.74% of the companies in the same industry.
76.28% of the companies in the same industry are more expensive than MTRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.64 | ||
| EV/EBITDA | 14.78 |
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's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.52
PEG (5Y)2.17
EPS Next 2Y9.58%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, MTRN is not a good candidate for dividend investing.
MTRN's Dividend Yield is a higher than the industry average which is at 1.02.
With a Dividend Yield of 0.45, MTRN pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
58.77% of the earnings are spent on dividend by MTRN. This is a bit on the high side, but may be sustainable.
The dividend of MTRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.77%
EPS Next 2Y9.58%
EPS Next 3Y13.03%
128.47
+1.81 (+1.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change1.07%
Ins Owners1.34%
Ins Owner Change-1.25%
Market Cap2.66B
Revenue(TTM)1.73B
Net Income(TTM)19.40M
Analysts80
Price Target146.54 (14.07%)
Short Float %2.76%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)8.84%
PT rev (3m)15.86%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 20.04 | ||
| P/S | 1.54 | ||
| P/FCF | 32.64 | ||
| P/OCF | 16.65 | ||
| P/B | 2.85 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 14.78 |
EPS(TTM)5.46
EY4.25%
EPS(NY)6.41
Fwd EY4.99%
FCF(TTM)3.94
FCFY3.06%
OCF(TTM)7.72
OCFY6.01%
SpS83.63
BVpS45.08
TBVpS26.34
PEG (NY)4.52
PEG (5Y)2.17
Graham Number74.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 2.08% | ||
| ROCE | 9.11% | ||
| ROIC | 5.84% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 7.9% | ||
| OM | 8.19% | ||
| 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.77 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 113.72% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.88% | ||
| Profit Quality | 420.55% | ||
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 4.16 |
F-Score6
WACC10.07%
ROIC/WACC0.58
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 Y5.21%
EPS Next 2Y9.58%
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 Year4.61%
Revenue Next 2Y5.97%
Revenue Next 3Y7.27%
Revenue Next 5YN/A
EBIT growth 1Y17.37%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year54.93%
EBIT Next 3Y25.21%
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 3 / 10 to MATERION CORP (MTRN). This can be considered as Overvalued.
How profitable is MATERION CORP (MTRN) stock?
MATERION CORP (MTRN) has a profitability rating of 5 / 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 23.53 and the Price/Book (PB) ratio is 2.85.
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%.