Materion (MTRN) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: 0.48%
• Average Volume (3M): 154.55K
• Price to Earnings (P/E): 127.0
• Beta (1Y): 1.28
• Revenue Growth: 3.93%
• EPS Growth: -73.94%
• Country: US
• Employees: 3,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 1.41
• Shares Outstanding: 20,732,740
• 10 Day Avg. Volume: 141,698
• 30 Day Avg. Volume: 154,549
• PEG Ratio: -3.71
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 292.48
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $136.00
• Price Target Upside: 17.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.51
• Revenue Forecast (FY): $1.74B

• Rating: 66 Neutral
• Price Target: $125.00 ▲(7.65% Upside)

Materion's overall stock score is driven by strong financial performance and positive earnings call highlights, such as record EBITDA margins and growth in key markets. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term weakness. Addressing profitability and operational challenges will be crucial for future performance.

Positive Factors

Strong Order Growth

Increasing order rates, especially in semiconductor, defense, space, and energy markets, indicate strong demand and potential for sustained revenue growth.

Record EBITDA Margins

Record EBITDA margins in Electronic Materials reflect improved cost structure and operational efficiency, supporting long-term profitability.

New Energy Initiatives

The agreement to supply materials for fusion energy technology positions Materion in a growing market, potentially driving future revenue and innovation.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates challenges in managing expenses, which could hinder profitability and financial flexibility over the long term.

Declining ROE

Declining ROE suggests less effective asset utilization, which may impact the company's ability to generate returns for shareholders.

Geopolitical Challenges

Geopolitical issues affecting sales in China could limit market access and growth opportunities in a significant market, impacting revenue.

Materion Business Overview & Revenue Model

Company Description

Materion Corporation (MTRN) is a leading global provider of advanced materials and services, specializing in the development and production of engineered materials for various high-tech applications. The company operates in several sectors, including aerospace, defense, telecommunications, electronics, and industrial markets. Materion's core products include specialty metals, alloys, and other advanced materials designed to meet the stringent requirements of its customers in these industries.

How the Company Makes Money

Materion generates revenue through a diverse range of products and services focused on advanced materials. The company's primary revenue streams include the sale of specialty alloys, precious metals, and engineered materials used in electronic and industrial applications. Materion benefits from long-term contracts with major customers in sectors such as aerospace and defense, which provide stable and recurring income. Additionally, the company engages in research and development partnerships that enhance its product offerings and foster innovation, further contributing to its earnings. The demand for high-performance materials in growing markets like electric vehicles, renewable energy, and telecommunications also drives revenue growth, as Materion positions itself as a key supplier of advanced materials in these expanding industries.

Materion Financial Statement Overview

Summary

Materion demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability margins are under pressure, and cash flow conversion from earnings could be improved. The company is well-positioned in terms of financial stability, but enhancing operational efficiency and profitability remains crucial for future growth.

Income Statement

Materion's income statement shows a strong revenue growth rate of 46.9% TTM, indicating robust top-line expansion. The gross profit margin is stable at 19.5%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.1%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins are modest at 3.7% and 4.6% respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.30 TTM, showing a conservative leverage position. Return on equity is low at 1.7%, indicating limited profitability relative to shareholder equity. The equity ratio is strong, suggesting a stable financial structure with a high proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 13.1% TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.68, indicating healthy cash conversion. However, the free cash flow to net income ratio of 0.63 suggests that not all earnings are translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.68B	1.67B	1.76B	1.51B	1.18B
Gross Profit	331.56M	325.99M	349.04M	343.88M	283.76M	192.63M
EBITDA	211.80M	203.30M	203.04M	177.52M	125.67M	72.35M
Net Income	19.40M	5.89M	95.70M	85.99M	72.47M	15.46M
Balance Sheet
Total Assets	1.80B	1.70B	1.76B	1.69B	1.61B	1.06B
Cash, Cash Equivalents and Short-Term Investments	16.41M	16.71M	13.29M	13.10M	14.46M	25.88M
Total Debt	541.63M	517.04M	493.73M	504.91M	523.17M	115.78M
Total Liabilities	858.59M	828.75M	877.67M	891.99M	887.04M	402.23M
Stockholders Equity	1.80B	868.88M	885.05M	799.99M	720.44M	655.63M
Cash Flow
Free Cash Flow	101.53M	7.01M	24.54M	38.35M	-12.67M	33.78M
Operating Cash Flow	159.98M	87.82M	144.41M	115.96M	90.24M	101.06M
Investing Cash Flow	-96.32M	-79.61M	-119.22M	-79.73M	-494.27M	-194.71M
Financing Cash Flow	-65.53M	-4.19M	-24.85M	-35.56M	393.01M	-7.09M

Materion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 116.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRN, the sentiment is Neutral. The current price of 116.12 is below the 20-day moving average (MA) of 121.73, below the 50-day MA of 120.85, and above the 200-day MA of 96.94, indicating a neutral trend. The MACD of -1.63 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTRN.

Materion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRN	66 Neutral	$2.41B	126.99	2.08%	0.48%	3.93%	-73.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MP	52 Neutral	$10.58B	―	-6.83%	―	26.44%	-95.87%
GSM	45 Neutral	$733.44M	―	-16.00%	1.33%	-16.89%	-403.77%
TMC	42 Neutral	$2.10B	―	―	―	―	-9.91%
IPX	35 Underperform	$1.23B	―	-49.09%	―	―	-18.77%

Materion Corporate Events

Materion Corp Reports Strong Q3 2025 Results

Materion Corporation is a global leader in advanced materials solutions, serving high-performance industries such as semiconductor, aerospace, defense, energy, and automotive, with a focus on specialty engineered alloy systems and precision optical coatings.

Materion Extends Precious Metals Agreement with Bank

On August 20, 2025, Materion Corporation and its subsidiaries amended their Precious Metals Consignment Agreement with Bank of Montreal, extending the maturity date of their largest consignment facility to August 31, 2028. This facility, with a limit of $150 million, plays a crucial role in Materion’s operations, and the extension ensures continued financial flexibility and stability for the company.

The most recent analyst rating on (MTRN) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on Materion stock, see the MTRN Stock Forecast page.

Materion Approves Special Stock Grant for CFO

On August 8, 2025, Materion Corporation’s Compensation and Human Capital Committee approved a special grant of 4,696 restricted stock units to Shelly Chadwick, the company’s Vice President, Finance and CFO. These units are set to vest on the third anniversary of the grant date, contingent on her continued employment, with provisions for alternative vesting in certain circumstances such as retirement or a change in control.

The most recent analyst rating on (MTRN) stock is a Buy with a $112.00 price target. To see the full list of analyst forecasts on Materion stock, see the MTRN Stock Forecast page.

Materion Corp Reports Strong Q2 2025 Results

Materion Corporation is a global leader in advanced materials solutions, serving high-performance industries such as semiconductor, industrial, aerospace & defense, energy, and automotive. Headquartered in Mayfield Heights, Ohio, the company is known for its expertise in specialty engineered alloy systems and precision optical coatings.

Materion Corp’s Strategic Growth Shines in Earnings Call

Materion Corp’s Latest Earnings Call Highlights Strategic Growth Amidst Challenges