Materion (MTRN) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: 0.67%
• Average Volume (3M): 163.41K
• Price to Earnings (P/E): 171.8
• Beta (1Y): 1.44
• Revenue Growth: 6.97%
• EPS Growth: -87.87%
• Country: US
• Employees: 3,000
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): 1.13
• Shares Outstanding: 20,814,259
• 10 Day Avg. Volume: 246,924
• 30 Day Avg. Volume: 163,409
• PEG Ratio: 2.32
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.17
• 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: $117.50
• Price Target Upside: 53.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ―

Materion demonstrates a solid financial foundation with consistent revenue growth and strong cash flow generation. However, high operational costs limit profitability, and technical indicators suggest a bearish trend. Valuation concerns arise due to a high P/E ratio and low dividend yield. Positive earnings call guidance and operational improvements provide some optimism, but external risks like tariffs and market weaknesses pose challenges.

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 shows consistent revenue growth and a strong balance sheet with low leverage, though profitability remains a challenge. While operational cash flow is robust, capital expenditures limit free cash flow, which could impact future investments.

Income Statement

Materion exhibits a stable revenue growth trajectory with a TTM revenue of $1.72 billion, reflecting a 2.1% increase from the previous year. Gross profit margin stands at 19.1% for TTM, indicating strong production efficiency. However, the net profit margin is relatively low at 0.6% due to higher operational costs, impacting profitability. EBIT and EBITDA margins are modest at 3.2% and 6.0%, respectively, suggesting room for operational improvements.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.31, indicating low leverage and financial flexibility. Return on equity is modest at 1.2% TTM, reflecting limited net income relative to equity. The equity ratio is high at 100% due to a balanced asset and liability structure. Overall, the company maintains a strong financial position with manageable debt levels.

Cash Flow

Operating cash flow has increased significantly, with a TTM value of $117 million, demonstrating robust cash-generating ability. However, free cash flow has only grown to $50.6 million, highlighting significant capital expenditures. The operating cash flow to net income ratio is strong at 11.51, indicating efficient cash management. The free cash flow to net income ratio is 4.98, suggesting potential constraints on liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.72B	1.68B	1.67B	1.76B	1.51B	1.18B
	Gross Profit
327.83M	325.99M	349.04M	343.88M	283.76M	192.63M
	EBIT
55.46M	47.22M	139.12M	119.75M	77.11M	33.86M
	EBITDA
102.84M	113.46M	200.80M	178.69M	126.36M	54.54M
	Net Income Common Stockholders
10.18M	5.89M	95.70M	85.99M	72.47M	15.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.63M	16.71M	13.29M	13.10M	14.46M	25.88M
	Total Assets
1.75B	1.70B	1.76B	1.69B	1.61B	1.06B
	Total Debt
536.75M	517.04M	493.73M	504.91M	523.17M	115.78M
	Net Debt
521.12M	500.32M	480.44M	491.81M	508.71M	89.90M
	Total Liabilities
864.43M	828.75M	877.67M	891.99M	887.04M	402.23M
	Stockholders Equity
887.93M	868.88M	885.05M	799.99M	720.44M	655.63M
Cash Flow		Free Cash Flow
50.64M	7.01M	24.54M	38.35M	-12.67M	33.78M
	Operating Cash Flow
117.12M	87.82M	144.41M	115.96M	90.24M	101.06M
	Investing Cash Flow
-74.04M	-79.61M	-119.22M	-79.73M	-494.27M	-194.71M
	Financing Cash Flow
-41.01M	-4.19M	-24.85M	-35.56M	393.01M	-7.09M

Materion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 76.75 is below the 20-day moving average (MA) of 79.63, below the 50-day MA of 80.74, and below the 200-day MA of 99.11, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, 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	$1.68B	171.78	1.14%	0.67%	6.97%	-87.87%
NEXA	58 Neutral	$721.79M	―	-16.64%	―	12.30%	42.72%
GSM	55 Neutral	$714.78M	27.86	-7.29%	1.38%	-4.98%	-192.96%
CMP	53 Neutral	$801.20M	―	-46.32%	1.61%	5.81%	-78.45%
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%
TMC	42 Neutral	$1.65B	―	-667.42%	―	―	-3.49%
LZM	38 Underperform	$272.96M	―	-814.96%	―	―	―

Materion Corporate Events

Materion Shareholders Approve 2025 Equity Compensation Plan

At the 2025 Annual Meeting of Shareholders held on May 7, 2025, Materion Corporation’s shareholders approved the 2025 Equity and Incentive Compensation Plan, which will replace the previous stock incentive plans. The new plan aims to enhance the company’s long-term success by encouraging stock ownership among key personnel and allows for various performance-based awards. The meeting also included the election of directors, approval of executive compensation, and ratification of Ernst & Young LLP as the company’s independent auditor.

Spark’s Take on MTRN Stock

According to Spark, TipRanks’ AI Analyst, MTRN is a Neutral.

Materion’s stock score reflects stable financial performance with strong revenue growth and a solid balance sheet, although profitability remains a challenge. Technical indicators suggest potential downward momentum. The high P/E ratio implies overvaluation concerns. The earnings call highlights operational strengths, but risks from tariffs and specific market weaknesses are significant factors.

To see Spark’s full report on MTRN stock, click here.