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Mativ Holdings, Inc. (MATV)
:MATV
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Mativ Holdings (MATV) AI Stock Analysis

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MATV

Mativ Holdings

(NYSE:MATV)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$11.00
▲(2.04% Upside)
Mativ Holdings' overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are partially offset by positive cash flow and strategic initiatives highlighted in the earnings call. The technical analysis indicates mixed signals, and valuation concerns persist due to negative earnings, though the dividend yield offers some compensation.
Positive Factors
Revenue Growth
The significant sequential sales growth indicates strong market demand and effective sales strategies, suggesting potential for sustained revenue expansion.
Cost Reduction Initiatives
The company's focus on cost reduction initiatives reflects a strategic approach to improving profitability and operational efficiency, enhancing long-term financial health.
Cash Flow Improvement
Improved cash flow and debt reduction efforts strengthen the balance sheet, providing more flexibility for future investments and growth opportunities.
Negative Factors
Declining Revenue Growth
Persistent revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.
High Leverage
High leverage increases financial risk, limiting the company's ability to invest in growth initiatives and potentially affecting its creditworthiness.
Profitability Challenges
Ongoing profitability issues highlight operational inefficiencies and cost pressures, which may hinder the company's ability to achieve sustainable financial performance.

Mativ Holdings (MATV) vs. SPDR S&P 500 ETF (SPY)

Mativ Holdings Business Overview & Revenue Model

Company DescriptionMativ Holdings (MATV) is a diversified materials company that specializes in the production of advanced materials for various industries, including filtration, medical, and industrial applications. The company focuses on providing innovative solutions that enhance performance and sustainability. Mativ's core products include filtration media, specialty textiles, and engineered materials that cater to the growing demand for high-performance solutions in environmental and health sectors.
How the Company Makes MoneyMativ 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in sales and EBITDA, successful cost reduction initiatives, and strategic moves that are expected to drive future growth. Some challenges remain, such as ongoing cost pressures and market uncertainties due to tariffs, but the overall sentiment is optimistic due to the company's proactive measures and strong performance.
Q2-2025 Updates
Positive Updates
Significant Sequential Sales and EBITDA Growth
Sales in Q2 increased by more than $40 million, up over 8% sequentially, and adjusted EBITDA rose by $30 million, more than 80% higher than the previous quarter.
Strong Performance in SAS Segment
SAS sales continued strong momentum, up 5% on an organic basis for the fifth consecutive quarter, with new long-term commitments driving incremental annual revenue in various categories.
Success in Cost Reduction Initiatives
Identified an additional $5 million in cost improvement opportunities, targeting $35 million to $40 million in cost reductions by year-end 2026, with $15 to $20 million realized in 2025.
Improved Cash Flow and Deleveraging
Second highest cash flow quarter since the merger and net debt reduced by more than $40 million, aiming to double free cash flow in 2025 compared to 2024.
Strategic Initiatives Driving Growth
New commercial leadership and strategic pricing initiatives expected to drive favorable results in the second half of 2025.
Negative Updates
Challenges in Paint Protection Film Market
While improving, paint protection film volumes are still below 2024 levels, though the gap is narrowing.
Higher Manufacturing and Distribution Costs
Adjusted EBITDA in the SAS segment was slightly down year-over-year due to higher manufacturing and distribution costs.
Effects of Tariffs and Macroeconomic Uncertainty
Trade policies and tariffs impacted less than 7% of sales but introduced uncertainty, affecting demand patterns and operational inefficiencies.
Company Guidance
During Mativ's Second Quarter 2025 Earnings Call, the company reported a significant improvement in key financial metrics. Sequentially, sales increased by more than $40 million, or over 8%, and adjusted EBITDA rose by $30 million, reflecting an increase of over 80% compared to the first quarter. On a year-over-year basis, organic sales were up by more than 2%, and adjusted EBITDA increased by 1%. The company's Sustainable & Adhesive Solutions (SAS) segment saw a 5% organic sales growth, while adjusted EBITDA slightly decreased due to higher manufacturing and distribution costs. The Filtration & Advanced Materials (FAM) segment experienced mixed demand but achieved over 20% growth in the HVAC and air pollution control markets. Mativ is targeting $35 million to $40 million in cost reductions by year-end 2026, with $15 million to $20 million expected to impact 2025. Additionally, the company anticipates delivering approximately twice the free cash flow in 2025 compared to 2024.

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
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.97B1.98B2.03B2.17B1.44B1.07B
Gross Profit347.50M364.10M358.50M437.60M330.30M308.30M
EBITDA-303.60M139.60M-242.80M70.70M81.00M196.70M
Net Income-454.30M-48.70M-310.20M-6.60M88.90M83.80M
Balance Sheet
Total Assets2.08B2.45B2.64B3.68B2.41B1.58B
Cash, Cash Equivalents and Short-Term Investments95.60M94.30M120.20M101.10M74.70M54.70M
Total Debt1.16B1.15B1.17B1.76B1.30B593.30M
Total Liabilities1.66B1.59B1.69B2.50B1.73B935.30M
Stockholders Equity416.60M858.50M949.10M1.18B682.20M649.60M
Cash Flow
Free Cash Flow-2.80M39.20M40.20M142.60M19.20M128.30M
Operating Cash Flow45.80M94.80M106.60M202.20M58.10M161.60M
Investing Cash Flow-35.30M-56.70M547.20M-481.30M-636.50M-203.10M
Financing Cash Flow-47.80M-55.90M-662.90M331.60M599.90M-8.60M

Mativ Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.78
Price Trends
50DMA
11.60
Negative
100DMA
9.28
Positive
200DMA
8.02
Positive
Market Momentum
MACD
-0.19
Positive
RSI
47.89
Neutral
STOCH
64.43
Neutral
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 10.78 is below the 20-day moving average (MA) of 10.91, below the 50-day MA of 11.60, and above the 200-day MA of 8.02, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 64.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$5.51B15.8810.71%1.51%-5.09%-26.13%
71
Outperform
$6.32B21.2617.53%1.19%-1.44%-31.12%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
$11.11B7.9118.34%3.71%11.48%1773.12%
59
Neutral
$316.29M-4.36%-26.71%-329.19%
54
Neutral
$589.37M-69.18%3.68%-0.62%-39.91%
43
Neutral
$163.44M-23.39%12.30%-2.16%44.89%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MATV
Mativ Holdings
10.87
-4.19
-27.82%
CLW
Clearwater Paper
19.77
-7.98
-28.76%
LPX
Louisiana-Pacific
92.65
-5.91
-6.00%
MERC
Mercer International
2.45
-3.45
-58.47%
UFPI
UFP Industries
93.26
-35.12
-27.36%
SUZ
Suzano Papel e Celulose SA
8.82
-1.07
-10.82%

Mativ Holdings Corporate Events

M&A TransactionsBusiness Operations and Strategy
Mativ Holdings Achieves $65M Synergies Post-Merger
Positive
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 21, 2025