MATERION CORP (MTRN) Stock Fundamental Analysis
NYSE:MTRN - New York Stock Exchange, Inc. - US5766901012 - Common Stock - Currency: USD
MTRN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. MTRN has only an average score on both its financial health and profitability. MTRN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years MTRN has been profitable.
MTRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTRN has a Return On Assets (0.58%) which is comparable to the rest of the industry.
MTRN has a Return On Equity of 1.15%. This is comparable to the rest of the industry: MTRN outperforms 59.09% of its industry peers.
With a decent Return On Invested Capital value of 5.98%, MTRN is doing good in the industry, outperforming 66.88% 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 11.60%.
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 has a Profit Margin (0.59%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MTRN has declined.
With a decent Operating Margin value of 8.05%, MTRN is doing good in the industry, outperforming 62.99% 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 55.19% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTRN is destroying value.
The number of shares outstanding for MTRN has been increased compared to 1 year ago.
MTRN has more shares outstanding than it did 5 years ago.
MTRN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.63 indicates that MTRN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, MTRN is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
MTRN has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as MTRN would need 11.06 years to pay back of all of its debts.
The Debt to FCF ratio of MTRN (11.06) is better than 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 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.61
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.84 indicates that MTRN has no problem at all paying its short term obligations.
MTRN has a Current ratio (2.84) which is in line with 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.
With a Quick ratio value of 1.20, MTRN is not doing good in the industry: 61.04% of the companies in the same industry are doing better.
| 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.
Measured over the past years, MTRN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.85% on average per year.
MTRN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.95%.
Measured over the past years, MTRN shows a small growth in Revenue. The Revenue has been growing by 7.28% on average per year.
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
The Earnings Per Share is expected to grow by 4.64% on average over the next years.
MTRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y-5.35%
EPS Next 2Y4.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.87%
Revenue Next 2Y1.76%
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.
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 17.10, the valuation of MTRN can be described as rather expensive.
81.82% of the companies in the same industry are more expensive than MTRN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MTRN to the average of the S&P500 Index (27.35), we can say MTRN is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.11, which indicates a correct valuation of MTRN.
Based on the Price/Forward Earnings ratio, MTRN is valued a bit cheaper than the industry average as 60.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, MTRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 65.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTRN is valued a bit cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.72 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y4.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTRN has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 2.66, MTRN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, MTRN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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.
MTRN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP110.03%
EPS Next 2Y4.64%
EPS Next 3YN/A
NYSE:MTRN (7/25/2025, 11:47:24 AM)
94.2
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners96.65%
Inst Owner Change-0.91%
Ins Owners1.35%
Ins Owner Change6.12%
Market Cap1.96B
Analysts80
Price Target122.4 (29.94%)
Short Float %1.94%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)0%
PT rev (3m)-6.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.14 | ||
| P/FCF | 46.72 | ||
| P/OCF | 16.74 | ||
| P/B | 2.21 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)5.51
EY5.85%
EPS(NY)5.85
Fwd EY6.21%
FCF(TTM)2.02
FCFY2.14%
OCF(TTM)5.63
OCFY5.97%
SpS82.64
BVpS42.67
TBVpS24.83
PEG (NY)N/A
PEG (5Y)1.58
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 | 3.63 |
F-Score5
WACC9.72%
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-5.35%
EPS Next 2Y4.64%
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-1.87%
Revenue Next 2Y1.76%
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%