MATERION CORP (MTRN)
US5766901012 - Common Stock
MTRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While MTRN has a great profitability rating, there are some minor concerns on its financial health. MTRN is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 4.63%, MTRN is in the better half of the industry, outperforming 76.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.39%, MTRN is in the better half of the industry, outperforming 76.77% of the companies in the same industry.
MTRN has a Return On Invested Capital of 7.07%. This is in the better half of the industry: MTRN outperforms 75.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTRN is below the industry average of 9.01%.
The last Return On Invested Capital (7.07%) for MTRN is above the 3 year average (6.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 9.39% | ||
| ROIC | 7.07% |
ROA(3y)5.01%
ROA(5y)4.49%
ROE(3y)10.54%
ROE(5y)8.45%
ROIC(3y)6.88%
ROIC(5y)6.56%
1.3 Margins
MTRN has a Profit Margin of 5.20%. This is in the better half of the industry: MTRN outperforms 70.97% of its industry peers.
MTRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.92%, MTRN is in the better half of the industry, outperforming 63.23% 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 20.46%, MTRN perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
In the last couple of years the Gross Margin of MTRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 5.2% | ||
| GM | 20.46% |
OM growth 3Y52.83%
OM growth 5Y7.98%
PM growth 3Y63.39%
PM growth 5Y27.01%
GM growth 3Y8.58%
GM growth 5Y0.14%
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.
The number of shares outstanding for MTRN has been increased compared to 5 years ago.
MTRN has a better debt/assets ratio than last year.
2.2 Solvency
MTRN has an Altman-Z score of 3.64. This indicates that MTRN is financially healthy and has little risk of bankruptcy at the moment.
MTRN's Altman-Z score of 3.64 is fine compared to the rest of the industry. MTRN outperforms 64.52% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that MTRN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, MTRN is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.64 |
ROIC/WACC0.82
WACC8.64%
2.3 Liquidity
MTRN has a Current Ratio of 2.91. This indicates that MTRN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.91, MTRN perfoms like the industry average, outperforming 58.71% of the companies in the same industry.
MTRN has a Quick Ratio of 1.07. This is a normal value and indicates that MTRN is financially healthy and should not expect problems in meeting its short term obligations.
MTRN's Quick ratio of 1.07 is on the low side compared to the rest of the industry. MTRN is outperformed by 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
MTRN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.75%.
Measured over the past years, MTRN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.83% on average per year.
Looking at the last year, MTRN shows a decrease in Revenue. The Revenue has decreased by -8.14% in the last year.
Measured over the past years, MTRN shows a small growth in Revenue. The Revenue has been growing by 6.63% on average per year.
EPS 1Y (TTM)-0.75%
EPS 3Y37.49%
EPS 5Y18.83%
EPS growth Q2Q-28.36%
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y12.28%
Revenue growth 5Y6.63%
Revenue growth Q2Q-12.93%
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 16.20% on average per year.
MTRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y9.6%
EPS Next 2Y16.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y7.99%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.99, MTRN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MTRN indicates a somewhat cheap valuation: MTRN is cheaper than 72.26% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MTRN to the average of the S&P500 Index (28.91), we can say MTRN is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of MTRN.
Based on the Price/Forward Earnings ratio, MTRN is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
MTRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
MTRN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.73 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MTRN's earnings are expected to grow with 16.20% in the coming years.
PEG (NY)2.29
PEG (5Y)1.17
EPS Next 2Y16.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTRN has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 2.85, MTRN has a dividend in line with its industry peers.
With a Dividend Yield of 0.46, MTRN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of MTRN has a limited annual growth rate of 4.37%.
MTRN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MTRN pays out 12.82% of its income as dividend. This is a sustainable payout ratio.
MTRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.82%
EPS Next 2Y16.2%
EPS Next 3YN/A
MATERION CORP
NYSE:MTRN (5/15/2024, 7:04:00 PM)
After market: 115.65 0 (0%)115.65
+3.49 (+3.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 15.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.29
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 9.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.92% | ||
| PM (TTM) | 5.2% | ||
| GM | 20.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.75%
EPS 3Y37.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y12.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y