MATERION CORP (MTRN) Stock Fundamental Analysis
NYSE:MTRN - New York Stock Exchange, Inc. - US5766901012 - Common Stock - Currency: USD
MTRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 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 valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years MTRN had a positive operating cash flow.
1.2 Ratios
MTRN's Return On Assets of 0.58% is in line compared to the rest of the industry. MTRN outperforms 58.06% of its industry peers.
MTRN has a Return On Equity of 1.15%. This is comparable to the rest of the industry: MTRN outperforms 58.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.98%, MTRN is in the better half of the industry, outperforming 67.74% 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 11.10%.
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
MTRN's Profit Margin of 0.59% is in line compared to the rest of the industry. MTRN outperforms 59.35% of its industry peers.
MTRN's Profit Margin has declined in the last couple of years.
MTRN's Operating Margin of 8.05% is fine compared to the rest of the industry. MTRN outperforms 63.23% of its industry peers.
MTRN's Operating Margin has improved in the last couple of years.
MTRN has a Gross Margin of 19.24%. This is comparable to the rest of the industry: MTRN outperforms 55.48% of its industry peers.
MTRN's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 1 year ago, MTRN has a worse debt to assets ratio.
2.2 Solvency
MTRN has an Altman-Z score of 3.40. This indicates that MTRN is financially healthy and has little risk of bankruptcy at the moment.
MTRN has a Altman-Z score of 3.40. This is in the better half of the industry: MTRN outperforms 65.16% of its industry peers.
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.
With a decent Debt to FCF ratio value of 11.06, MTRN is doing good in the industry, outperforming 62.58% 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 has a worse Debt to Equity ratio (0.46) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.68
WACC8.83%
2.3 Liquidity
MTRN has a Current Ratio of 2.84. This indicates that MTRN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.84, MTRN is doing good in the industry, outperforming 63.23% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that MTRN should not have too much problems paying its short term obligations.
MTRN's Quick ratio of 1.20 is in line compared to the rest of the industry. MTRN outperforms 40.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.75% over the past year.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
Looking at the last year, MTRN shows a small growth in Revenue. The Revenue has grown by 6.95% in the last year.
The Revenue has been growing slightly by 7.28% on average over the past years.
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 2.87% 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-0.35%
Revenue Next 2Y2.87%
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
With a Price/Earnings ratio of 14.20, MTRN is valued correctly.
Based on the Price/Earnings ratio, MTRN is valued cheaply inside the industry as 86.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, MTRN is valued a bit cheaper.
MTRN is valuated correctly with a Price/Forward Earnings ratio of 13.19.
Based on the Price/Forward Earnings ratio, MTRN is valued a bit cheaper than the industry average as 62.58% of the companies are valued more expensively.
MTRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 13.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTRN is valued a bit cheaper than the industry average as 67.10% of the companies are valued more expensively.
69.68% 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 | 38.81 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y5.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, MTRN is not a good candidate for dividend investing.
MTRN's Dividend Yield is a higher than the industry average which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.40, MTRN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 110.03% 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.
DP110.03%
EPS Next 2Y5.4%
EPS Next 3YN/A
78.26
-2.48 (-3.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.65%
Inst Owner Change1.59%
Ins Owners1.35%
Ins Owner Change6.13%
Market Cap1.63B
Analysts80
Price Target122.4 (56.4%)
Short Float %1.71%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)-1.03%
PT rev (3m)-6.8%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-9.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.38%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 13.19 | ||
| P/S | 0.95 | ||
| P/FCF | 38.81 | ||
| P/OCF | 13.9 | ||
| P/B | 1.83 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)5.51
EY7.04%
EPS(NY)5.93
Fwd EY7.58%
FCF(TTM)2.02
FCFY2.58%
OCF(TTM)5.63
OCFY7.19%
SpS82.64
BVpS42.67
TBVpS24.83
PEG (NY)N/A
PEG (5Y)1.31
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 | 3.4 |
F-Score5
WACC8.83%
ROIC/WACC0.68
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-0.35%
Revenue Next 2Y2.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.65%
EBIT growth 3Y19.66%
EBIT growth 5Y9.09%
EBIT Next Year49.52%
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%