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. Both the profitability and the financial health of MTRN get a neutral evaluation. Nothing too spectacular is happening here. MTRN is valued correctly, 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.
Each year in the past 5 years MTRN has 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 58.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.15%, MTRN is in line with its industry, outperforming 59.09% of the companies in the same industry.
MTRN's Return On Invested Capital of 5.98% is fine compared to the rest of the industry. MTRN outperforms 66.88% 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 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
With a Profit Margin value of 0.59%, MTRN perfoms like the industry average, outperforming 59.74% 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 8.05% is fine compared to the rest of the industry. MTRN outperforms 62.99% of its industry peers.
MTRN's Operating Margin has improved in the last couple of years.
The Gross Margin of MTRN (19.24%) 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 | 8.05% | ||
| 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
MTRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MTRN has been increased compared to 1 year ago.
Compared to 5 years ago, MTRN has more shares outstanding
Compared to 1 year ago, MTRN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that MTRN is not in any danger for bankruptcy at the moment.
MTRN has a Altman-Z score of 3.63. This is in the better half of the industry: MTRN outperforms 62.99% 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.
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.
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 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.61
WACC9.75%
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.
MTRN's Current ratio of 2.84 is in line compared to the rest of the industry. MTRN outperforms 59.74% of its industry peers.
A Quick Ratio of 1.20 indicates that MTRN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, MTRN is doing worse than 61.04% of the companies in the same industry.
| 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.
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%.
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 4.64% yearly.
The Revenue is expected to grow by 1.76% on average over the next years.
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
The Price/Earnings ratio is 17.21, which indicates a rather expensive current valuation of MTRN.
Based on the Price/Earnings ratio, MTRN is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTRN to the average of the S&P500 Index (28.04), we can say MTRN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.21, the valuation of MTRN can be described as correct.
MTRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTRN is cheaper than 60.39% of the companies in the same industry.
MTRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 16.21 |
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.
68.18% 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 | 47.02 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y4.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, MTRN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.65, MTRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MTRN's dividend is way lower than the S&P500 average.
| 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.
The dividend of MTRN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP110.03%
EPS Next 2Y4.64%
EPS Next 3YN/A
94.8
+0.62 (+0.66%)
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 Cap1.97B
Analysts80
Price Target122.4 (29.11%)
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 | 17.21 | ||
| Fwd PE | 16.21 | ||
| P/S | 1.15 | ||
| P/FCF | 47.02 | ||
| P/OCF | 16.84 | ||
| P/B | 2.22 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)5.51
EY5.81%
EPS(NY)5.85
Fwd EY6.17%
FCF(TTM)2.02
FCFY2.13%
OCF(TTM)5.63
OCFY5.94%
SpS82.64
BVpS42.67
TBVpS24.83
PEG (NY)N/A
PEG (5Y)1.59
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
WACC9.75%
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%