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Mativ Holdings (MATV)
NYSE:MATV
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Mativ Holdings
(NYSE:MATV)
52Neutral
Positive Factors
Company Strategy
Recent segment and footprint reorganisation, cost reduction initiatives, focused growth investments and a more decisive debt reduction plan, have set the stage for a new and progressively better Mativ.
Earnings Potential
Analyst's recommendation highlights a substantial upside potential to the price target, which is 70.5% higher than the current price.
Negative Factors
Debt and Acquisitions
Ill-timed acquisitions, incremental portfolio complexity, significant debt buildup, weakening earnings and returns have weighed on the stock.
Mativ Holdings (MATV) vs. S&P 500 (SPY)
Market Cap
$374.54M
Dividend Yield5.82%
Average Volume (3M)748.59K
Price to Earnings (P/E)4.6
Beta (1Y)0.75
Revenue Growth-13.97%
EPS Growth84.07%
CountryUS
Employees5,400
SectorBasic Materials
Sector Strength62
IndustryChemicals
Share Statistics
EPS (TTM)-0.90
Shares Outstanding54,517,610
10 Day Avg. Volume1,107,235
30 Day Avg. Volume748,589
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)4.00
P/FCF Ratio5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.50Price Target Upside164.05% Upside
Rating ConsensusHold
Number of Analyst Covering1
Mativ Holdings Business Overview & Revenue Model
Company DescriptionSchweitzer-Mauduit International, Inc. engages in the provision of engineered solutions, and advanced materials for a variety of industries. It operates through the Engineered Papers and Advanced Materials and Structures segments. The Engineered Papers segment manufactures lightweight specialty papers used in manufacturing banded papers used in the production of lower ignition propensity, cigarettes, and premium specialized papers such as low volume specialized commercial and industrial commodity paper grades. The Advanced Materials and Structure segment refers to the production of resin-based plastic netting and melt blown products, machine plastic core tubes, urethane films, and resin-based rolled products. The company was founded in 1995 and is headquartered in Alpharetta, GA.
How the Company Makes MoneyMativ Holdings generates revenue through the sale of its specialty materials and engineered products. Its revenue model is primarily driven by the production and distribution of high-performance materials to a diverse range of industries. Key revenue streams include sales from filtration media, which are used in air and liquid filtration applications; release liners, which serve as backing materials for adhesive products; and specialty papers utilized in various consumer and industrial applications. Additionally, Mativ's advanced polymer solutions contribute significantly to its earnings by catering to sectors such as healthcare and packaging. Strategic partnerships and a focus on innovation and customer-centric solutions further bolster the company's financial performance.
Mativ Holdings Financial Statement Overview
Summary
Mativ Holdings is experiencing profitability challenges with negative net income, high leverage, and a negative return on equity. However, it maintains positive free cash flow, indicating some operational resilience.Income Statement
Mativ Holdings experienced a decline in revenue over the TTM period with a revenue growth rate of -2.22% from 2023 to 2024 TTM. The gross profit margin for the TTM is 18.38%, and the net profit margin is -2.46%, indicating profitability challenges. Additionally, the company has shown negative EBIT and EBITDA margins in 2023 but improved to positive margins in the TTM. Despite these improvements, the consistent negative net income highlights ongoing profitability issues.50
Neutral
Balance Sheet
The balance sheet shows a debt-to-equity ratio of 1.33 in the TTM, reflecting high leverage, which poses financial risk. The equity ratio is 35.08%, indicating a moderate level of equity financing. The return on equity (ROE) is negative at -5.68% for the TTM, pointing to inefficiencies in generating returns on shareholder equity. The company needs to address its leverage and improve profitability to enhance financial stability.55
Neutral
Cash Flow
Mativ Holdings' cash flow statement reveals a positive free cash flow of $37.3 million for the TTM, although it decreased by 7.21% from the previous year. The operating cash flow to net income ratio is negative due to the negative net income, indicating cash generation issues relative to profitability. However, the company's ability to maintain positive free cash flow is a positive sign amidst profitability challenges.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.98B | 2.03B | 2.17B | 1.44B | 1.07B | Gross Profit |
| 364.10M | 358.50M | 437.60M | 330.30M | 308.30M | EBIT |
| 6.30M | -413.90M | 81.00M | 129.30M | 139.70M | EBITDA |
| 139.60M | -242.80M | 92.20M | 211.00M | 196.70M | Net Income Common Stockholders |
| -48.70M | -310.20M | -11.80M | 88.90M | 83.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 94.30M | 120.20M | 124.40M | 74.70M | 54.70M | Total Assets |
| 2.45B | 2.64B | 3.68B | 2.41B | 1.58B | Total Debt |
| 1.14B | 1.17B | 1.76B | 1.27B | 593.30M | Net Debt |
| 1.05B | 1.05B | 1.64B | 1.20B | 538.60M | Total Liabilities |
| 1.59B | 1.69B | 2.50B | 1.73B | 935.30M | Stockholders Equity |
| 858.50M | 949.10M | 1.18B | 682.20M | 649.60M |
| Cash Flow | Free Cash Flow | |||
| 39.20M | 40.20M | 142.60M | 19.20M | 128.30M | Operating Cash Flow |
| 94.80M | 106.60M | 202.20M | 58.10M | 161.60M | Investing Cash Flow |
| -56.70M | 547.20M | -481.30M | -636.50M | -203.10M | Financing Cash Flow |
| -55.90M | -662.90M | 331.60M | 599.90M | -8.60M |
Mativ Holdings Technical Analysis
Negative
5.87
Price Trends
8.82
Negative
11.17
Negative
14.18
Negative
Market Momentum
-0.72
Negative
29.42
Positive
57.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATV, the sentiment is Negative. The current price of 5.87 is below the 20-day moving average (MA) of 7.34, below the 50-day MA of 8.82, and below the 200-day MA of 14.18, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 29.42 is Positive, neither overbought nor oversold. The STOCH value of 57.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MATV.
Mativ Holdings Risk Analysis
Mativ Holdings disclosed 33 risk factors in its most recent earnings report. Mativ Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mativ Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.73B | 22.30 | 19.03% | 2.53% | 7.45% | 5.26% | |
68 Neutral | $3.68B | 21.85 | 7.32% | 2.59% | 3.11% | 123.46% | |
68 Neutral | $4.57B | 28.63 | 6.42% | 4.47% | -6.93% | -65.66% | |
67 Neutral | $4.41B | 16.48 | 45.91% | 2.64% | -1.75% | -21.15% | |
60 Neutral | $3.01B | 24.82 | 7.27% | 1.56% | 1.65% | -10.99% | |
52 Neutral | $374.54M | 4.60 | -5.41% | 5.82% | -13.97% | 84.07% | |
47 Neutral | $2.64B | -3.82 | -29.05% | 3.32% | 2.72% | -29.50% |
* Basic Materials Sector Average
Performance Comparison
MATV
Mativ Holdings
5.87
-11.91
-66.99%
FUL
H.B. Fuller Company
53.91
-24.32
-31.09%
PKG
Packaging
197.30
17.44
9.70%
AVNT
Avient
40.13
-0.55
-1.35%
SEE
Sealed Air
30.06
-6.10
-16.87%
SON
Sonoco Products
45.21
-10.25
-18.48%
Mativ Holdings Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -35.42% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance and growth in the SAS segment and successful cost reductions, offset by declines in the FAM segment and ongoing challenges with input costs and paint protection film quality issues. While there are positive signs of growth and strategic investments, the company faces hurdles in certain areas.Highlights
Strong SAS Segment Performance
The SAS segment showed a nearly 13% year-over-year organic sales growth in Q4 and a full-year adjusted EBITDA increase of almost 19% in 2024, with margin up 210 basis points.
Cost Reduction and Organizational Restructuring
Over $20 million in overhead costs were removed in 2024, with plans for an additional $20 million reduction by the end of 2026. Operations were streamlined, and debt reduced by over 35%.
Improved Healthcare Business Performance
The healthcare segment experienced over 10% growth in 2024, with margins becoming accretive due to a successful turnaround strategy.
Increased Sales Pipeline for 2025
The SAS sales pipeline for 2025 is more than 50% greater than the previous year, indicating strong future growth potential.
Strategic Investments in New Markets
New smart glass film partnerships were announced, expected to support growth in optical films by 2026, and investments in digital print, e-commerce, and specialty tapes were highlighted.
Lowlights
Decline in FAM Segment
FAM sales decreased by more than 7% in Q4 2024 year-over-year due to lower volumes in advanced films and netting categories, along with lower selling prices.
Quality Issues in Paint Protection Film
A quality issue in late 2023 led to a decline in demand for paint protection film, resulting in share loss. Efforts to improve quality and regain customer trust are underway.
Increased Input Costs
The company faced $9 million in unfavorable impacts from higher input and manufacturing costs, partially offset by $2 million from higher volume and lower SG&A costs.
Expected Q1 2025 Challenges
Q1 2025 is expected to be impacted by high inventory and input costs, with market demand remaining challenged.
Company Guidance
During the Mativ Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided several key metrics and guidance. The SAS segment showed strong performance, with organic sales growth of nearly 13% year-over-year and a full-year adjusted EBITDA increase of about 19%. The SAS margin improved by 210 basis points. The FAM segment, however, faced challenges, with a 7% decline in sales due to lower volumes in advanced films. Mativ reduced overhead costs by $20 million in 2024 and plans an additional $20 million reduction by 2026. For 2025, Mativ expects a $10-15 million headwind from input costs but plans to offset this with pricing actions. Additionally, capital expenditures are projected to be around $50 million, with a focus on profit growth, cash generation, and reducing debt and leverage. The company aims to further streamline operations, reduce complexity, and improve customer relationships to drive growth in 2025.Mativ Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Mativ Holdings Appoints Shruti Singhal as New CEO
Neutral
Mar 11, 2025
On March 11, 2025, Mativ Holdings appointed Shruti Singhal as President and CEO, succeeding Julie Schertell. Singhal, with a strong background in leading business transformations, aims to drive Mativ’s growth and operational excellence. Schertell’s departure is treated as an involuntary termination without cause, entitling her to severance benefits. The company also amended its bylaws, eliminating temporary governance provisions from a previous merger agreement.
Executive/Board ChangesPrivate Placements and Financing
Mativ Holdings Amends Credit Agreement and Leadership Change
Neutral
Dec 19, 2024
Mativ Holdings, Inc. has amended its multicurrency credit agreement, increasing applicable rate margins and allowing borrowings up to $504 million in Sterling. John D. Rogers, PhD, has announced he will not seek re-election to the Board of Directors in 2025, though he will continue as Chair of the Audit Committee until his term expires.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.