Materion (MTRN) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: 0.65%
• Average Volume (3M): 126.26K
• Price to Earnings (P/E): 297.4
• Beta (1Y): 1.48
• Revenue Growth: 1.19%
• EPS Growth: -93.81%
• Country: US
• Employees: 3,037
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): 0.26
• Shares Outstanding: 20,814,259
• 10 Day Avg. Volume: 106,585
• 30 Day Avg. Volume: 126,261
• PEG Ratio: N/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 Ratio: 4.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $130.00
• Price Target Upside: 56.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Materion's overall score reflects a stable financial position with significant profitability challenges and high leverage. The earnings call provided positive forward guidance, offsetting some concerns. However, technical indicators suggest a bearish trend, while valuation metrics indicate overvaluation. The stock score captures these mixed signals, balancing the company's operational strengths with market and valuation pressures.

Materion Business Overview & Revenue Model

Company Description

Materion 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 Money

Materion 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 83.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 83.19 is above the 20-day moving average (MA) of 78.93, below the 50-day MA of 85.53, and below the 200-day MA of 102.34, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTRN.

Materion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRN	65 Neutral	$1.73B	297.37	0.67%	0.65%	1.19%	-93.81%
GSM	63 Neutral	$698.93M	134.41	0.67%	1.42%	-0.37%	-94.30%
NEXA	56 Neutral	$788.01M	―	-20.22%	―	6.28%	29.57%
Sector *	49 Neutral	$1.95B	-1.59	-21.99%	3.77%	0.61%	-27.45%
CMP	48 Neutral	$519.63M	―	-42.75%	1.61%	-9.30%	-136.46%
TMC	44 Neutral	$1.09B	―	-667.42%	―	―	-3.49%
LZM	38 Underperform	$246.06M	―	-814.96%	―	―	―