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Materion Corp (MTRN)
NYSE:MTRN
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Materion
(NYSE:MTRN)
63Neutral
Materion (MTRN) vs. S&P 500 (SPY)
Market Cap
$1.68B
Dividend Yield0.72%
Average Volume (3M)111.82K
Price to Earnings (P/E)287.8
Beta (1Y)1.62
Revenue Growth1.19%
EPS Growth-93.81%
CountryUS
Employees3,037
SectorBasic Materials
Sector Strength64
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.26
Shares Outstanding20,765,215
10 Day Avg. Volume125,682
30 Day Avg. Volume111,821
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.06
Price to Cash Flow (P/CF)5.80
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$130.00Price Target Upside72.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Materion Business Overview & Revenue Model
Company DescriptionMaterion Corporation, through with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally. It operates through Performance Alloys and Composites, Advanced Materials, and Precision Optics segments. The Performance Alloys and Composites segment offers advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes. This segment operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale. The Advances Materials segment produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire. This segment offers its products from its facilities, as well as through direct sales offices and independent sales representatives. The Precision Optics segment designs and produces precision thin film coatings, optical filters, and assemblies. This segment sells its directly from its facilities, as well as through direct sales offices and independent sales representatives throughout the world. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in 2011. Materion Corporation was incorporated in 1931 and is headquartered in Mayfield Heights, Ohio.
How the Company Makes MoneyMaterion makes money primarily through the sale of its advanced materials and engineered solutions to a diverse array of industries. The company's revenue streams are driven by its ability to produce specialized materials that meet the stringent requirements of high-tech industries. Key revenue sources include the sale of beryllium products, which are critical in aerospace and defense applications, and the provision of electronic materials used in semiconductor manufacturing. Materion also benefits from strategic partnerships and long-term supply agreements with major industrial and technological firms, ensuring a steady demand for its products. Additionally, its focus on innovation and development of new materials contributes to its competitive advantage and revenue growth.
Materion Financial Statement Overview
Summary
Materion demonstrates a solid revenue base with some profitability challenges, evident from declining margins. The balance sheet indicates leverage that could pose risks if not managed carefully. Cash flow management appears strong, although the decrease in free cash flow signals potential liquidity concerns if capital expenditures remain high. Overall, Materion's financial position is stable but requires attention to profitability and debt levels.Income Statement
Materion has shown a consistent ability to generate revenue, with a slight increase from 2023 to 2024. However, gross profit margin and net profit margin have declined, indicating pressure on profitability. The decline in EBIT and EBITDA margins from the previous year further highlights the challenges in maintaining operational efficiency.72
Positive
Balance Sheet
The balance sheet reveals a high level of debt relative to equity, indicated by the debt-to-equity ratio. The lack of available data on total assets and stockholders' equity for 2024 precludes a complete analysis, but previous years show some stability in equity levels, despite rising debt.60
Neutral
Cash Flow
Cash flow from operations remains positive, although free cash flow has decreased from 2023 to 2024, indicating higher capital expenditures impacting liquidity. The operating cash flow to net income ratio is robust, suggesting good cash conversion from earnings.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.68B | 1.67B | 1.76B | 1.51B | 1.18B | Gross Profit |
| 325.99M | 349.04M | 343.88M | 283.76M | 192.63M | EBIT |
| 47.22M | 139.12M | 119.75M | 77.11M | 33.86M | EBITDA |
| 47.22M | 200.80M | 178.69M | 126.36M | 54.54M | Net Income Common Stockholders |
| 5.89M | 95.70M | 85.99M | 72.47M | 15.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.71M | 13.29M | 13.10M | 14.46M | 25.88M | Total Assets |
| 1.70B | 1.76B | 1.69B | 1.61B | 1.06B | Total Debt |
| 517.04M | 493.73M | 504.91M | 523.17M | 115.78M | Net Debt |
| 500.32M | 480.44M | 491.81M | 508.71M | 89.90M | Total Liabilities |
| 828.75M | 877.67M | 891.99M | 887.04M | 402.23M | Stockholders Equity |
| 868.88M | 885.05M | 799.99M | 720.44M | 655.63M |
| Cash Flow | Free Cash Flow | |||
| 7.01M | 24.54M | 38.35M | -12.67M | 33.78M | Operating Cash Flow |
| 87.82M | 144.41M | 115.96M | 90.24M | 101.06M | Investing Cash Flow |
| -79.61M | -119.22M | -79.73M | -494.27M | -194.71M | Financing Cash Flow |
| -4.19M | -24.85M | -35.56M | 393.01M | -7.09M |
Materion Technical Analysis
Negative
75.16
Price Trends
92.25
Negative
99.93
Negative
104.44
Negative
Market Momentum
-2.66
Positive
32.16
Neutral
16.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRN, the sentiment is Negative. The current price of 75.16 is below the 20-day moving average (MA) of 84.80, below the 50-day MA of 92.25, and below the 200-day MA of 104.44, indicating a bearish trend. The MACD of -2.66 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTRN.
Materion Risk Analysis
Materion disclosed 31 risk factors in its most recent earnings report. Materion reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Materion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.58B | 17.54 | 11.71% | 1.63% | -6.56% | -31.89% | |
76 Outperform | $8.32B | 31.43 | 16.82% | 0.48% | 5.65% | 84.17% | |
70 Outperform | $7.42B | 21.13 | 22.82% | ― | 4.51% | -2.90% | |
66 Neutral | $4.70B | 69.12 | 1.78% | 1.73% | -7.93% | -89.29% | |
63 Neutral | $1.68B | 287.78 | 0.67% | 0.72% | 1.19% | -93.81% | |
57 Neutral | $959.11M | 20.77 | 7.09% | 5.77% | -2.04% | -1.36% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% |
* Basic Materials Sector Average
Performance Comparison
MTRN
Materion
75.16
-49.95
-39.92%
ATI
ATI
48.88
-2.85
-5.51%
CRS
Carpenter Technology
166.54
88.96
114.67%
CMC
Commercial Metals Company
41.62
-15.46
-27.08%
KALU
Kaiser Aluminum
53.41
-36.00
-40.26%
RS
Reliance Steel
275.32
-59.57
-17.79%
Materion Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -24.55% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
Materion reported strong financial results with record EBITDA and margin expansion, driven by strategic initiatives and cost management. However, challenges remain in specific segments like Precision Optics and ongoing market headwinds in automotive and industrial sectors.Highlights
Record EBITDA with Margin Expansion
Materion achieved record EBITDA in Q4 2024 with a 240 basis point margin expansion. This marks the company's fourth consecutive year of record EBITDA and EBITDA margins.
Strong Performance in Aerospace and Defense
Continued strong shipments in aerospace and defense contributed to Materion's performance, with new business wins including a $150 million multiyear agreement in space propulsion systems.
Strategic Initiatives and Cost Management
Materion eliminated underperforming non-core businesses, improved cost structure by reducing over 150 positions, and achieved a 390 basis point improvement in electronic materials EBITDA margins.
R&D Investment at an All-Time High
Materion's R&D spend in 2024 was at an all-time high, focusing on partnering with customers to deliver next-generation products and solutions.
Lowlights
Market Headwinds in Automotive and Industrial
Continued softness across automotive and industrial markets affected overall performance, with automotive expected to remain weak in 2025.
Precision Clad Strip Inventory Correction
Precision Clad Strip faced meaningful headwinds with a projected 20% year-over-year decline in 2025 due to inventory corrections.
Precision Optics Segment Challenges
Precision Optics saw a 17% decline in value-added sales and posted an EBITDA loss, leading to a $73 million non-cash goodwill impairment charge.
Company Guidance
During the Materion Corporation's fourth quarter and full-year 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics. Materion achieved record EBITDA in the fourth quarter, with a 240-basis-point margin expansion, reflecting strong operational performance and cost management. The full-year 2024 adjusted EBITDA margin reached the midterm target of 20% for the first time. Looking ahead, the company set a new midterm target of a 23% EBITDA margin, expecting an improvement of 300 basis points over the next several years. For 2025, Materion anticipates mid-single-digit growth in the semiconductor market, a recovery in the industrial sector, and continued strength in aerospace and defense. However, it expects challenges in the automotive market and headwinds in the precision clad strip business due to an ongoing inventory correction. Full-year 2025 adjusted earnings per share are projected to range between $5.30 and $5.70, representing a 3% increase at the midpoint from 2024.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.