Mativ Holdings (MATV) AI Stock Analysis

• Market Cap: $614.52M
• Dividend Yield: 3.54%
• Average Volume (3M): 593.83K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.64
• Revenue Growth: -0.62%
• EPS Growth: -39.91%
• Country: US
• Employees: 5,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.33
• Shares Outstanding: 54,672,520
• 10 Day Avg. Volume: 561,934
• 30 Day Avg. Volume: 593,830
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.11
• Enterprise Value/Ebitda: -4.70
• 1Y Price Target: $13.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $13.00 ▲(14.94% Upside)

Mativ Holdings' overall stock score reflects a mix of financial challenges and strategic progress. The most significant factor is the financial performance, which is under pressure due to declining revenues and high leverage. However, strong technical indicators and positive corporate events, such as successful synergies post-merger, provide some optimism. The earnings call also adds a positive outlook with growth initiatives, though valuation concerns remain due to recent losses.

Positive Factors

Synergies Post-Merger

Achieving significant synergies post-merger enhances operational efficiency and reduces costs, strengthening the company's competitive position and financial health.

Cost Reduction Initiatives

Strategic cost reduction initiatives improve profitability and cash flow, allowing for reinvestment in growth areas and enhancing long-term financial stability.

Improved Cash Flow Forecast

Doubling free cash flow enhances financial flexibility, enabling debt reduction and investment in growth opportunities, supporting sustainable business expansion.

Negative Factors

Declining Revenue Growth

Persistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth and making it vulnerable to economic downturns or interest rate hikes.

Challenges in FAM Segment

Ongoing challenges in key segments like FAM can hinder revenue growth and profitability, affecting the company's ability to capitalize on market opportunities.

Mativ Holdings Business Overview & Revenue Model

Company Description

Mativ Holdings, Inc. operates as a performance materials company. The company operates through two segments, Advanced Materials & Structures (AMS), and Engineered Papers (EP). The AMS segment manufactures resin-based rolled goods, such as nets, films and meltblown materials, bonding products, and adhesive components, as well as adhesives and other coating solutions, and converting services. It serves healthcare, construction, industrial, transportation, and filtration end-markets. The EP segment produces various cigarette papers and reconstituted tobacco products for the tobacco industry. It also produces non-tobacco papers for various applications, such as energy storage and industrial commodity paper grades. The company sells its products in the United States, Europe and the former Commonwealth of Independent States, the Asia Pacific, the Americas, and internationally. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

Mativ Holdings generates revenue primarily through the sale of its advanced materials and filtration solutions across multiple sectors. The company has a diversified revenue model that includes direct sales to industrial clients, partnerships with manufacturers, and contracts with governmental and healthcare organizations. Key revenue streams include sales from filtration products, where Mativ serves industries such as water treatment and air filtration, as well as medical supplies that cater to healthcare providers. Additionally, Mativ leverages strategic partnerships with other companies to expand its market reach and enhance product offerings, thus contributing significantly to its earnings.

Mativ Holdings Financial Statement Overview

Summary

Mativ Holdings faces significant financial challenges, including declining revenues, profitability issues, and high leverage. Despite positive operating cash flow, instability in free cash flow and high debt levels pose risks, necessitating strategic measures for improvement.

Income Statement

Mativ Holdings has experienced declining revenue growth over the years, with a notable decrease in total revenue from 2022 to the TTM period. The gross profit margin remains low, and the company has reported negative EBIT and net income, indicating operational and profitability challenges. Despite previous positive EBITDA, recent figures show a downturn, raising concerns about ongoing profitability.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio exceeding optimal levels, indicating potential financial risk. Although the equity ratio shows a moderate proportion of equity financing, the return on equity has been negative due to losses. The trend of decreasing stockholders' equity highlights potential stability issues.

Cash Flow

Operating cash flow has remained positive, reflecting some capacity to generate cash from operations. However, free cash flow has shown volatility with recent decreases, potentially impacting the company’s ability to invest and manage debt. Ratios indicate some resilience in cash flow management despite profitability pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.98B	2.03B	2.17B	1.44B	1.07B
Gross Profit	347.50M	364.10M	358.50M	437.60M	330.30M	308.30M
EBITDA	-303.60M	139.60M	-242.80M	70.70M	81.00M	196.70M
Net Income	-454.30M	-48.70M	-310.20M	-6.60M	88.90M	83.80M
Balance Sheet
Total Assets	2.08B	2.45B	2.64B	3.68B	2.41B	1.58B
Cash, Cash Equivalents and Short-Term Investments	95.60M	94.30M	120.20M	101.10M	74.70M	54.70M
Total Debt	1.16B	1.15B	1.17B	1.76B	1.30B	593.30M
Total Liabilities	1.66B	1.59B	1.69B	2.50B	1.73B	935.30M
Stockholders Equity	416.60M	858.50M	949.10M	1.18B	682.20M	649.60M
Cash Flow
Free Cash Flow	-2.80M	39.20M	40.20M	142.60M	19.20M	128.30M
Operating Cash Flow	45.80M	94.80M	106.60M	202.20M	58.10M	161.60M
Investing Cash Flow	-35.30M	-56.70M	547.20M	-481.30M	-636.50M	-203.10M
Financing Cash Flow	-47.80M	-55.90M	-662.90M	331.60M	599.90M	-8.60M

Mativ Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATV, the sentiment is Positive. The current price of 11.31 is below the 20-day moving average (MA) of 12.03, above the 50-day MA of 10.58, and above the 200-day MA of 8.03, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATV.

Mativ Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	72 Outperform	$5.57B	16.16	10.96%	1.48%	-5.09%	-26.13%
LPX	69 Neutral	$5.93B	20.10	25.13%	1.24%	-1.44%	-31.12%
MATV	61 Neutral	$614.52M	4.60	-69.18%	3.54%	-0.62%	-39.91%
SUZ	60 Neutral	$11.57B	8.24	-21.91%	3.51%	11.48%	1773.12%
CLW	59 Neutral	$333.36M	-3.31	24.06%	―	-26.71%	-329.19%
MERC	43 Neutral	$193.58M	-1.76	-24.47%	10.38%	-2.16%	44.89%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Mativ Holdings Corporate Events

Mativ Holdings Achieves $65M Synergies Post-Merger

Mativ Holdings has realized over $65 million in synergies since its merger, optimizing its manufacturing footprint and reducing complexity by decreasing the number of facilities and warehouses. The company has divested from tobacco-based products and focuses on high-growth markets, aiming to enhance its portfolio mix and reduce net debt by over 40% since the merger.