Materion (MTRN) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: 0.68%
• Average Volume (3M): 157.93K
• Price to Earnings (P/E): 174.6
• Beta (1Y): 1.44
• Revenue Growth: 6.97%
• EPS Growth: -87.87%
• Country: US
• Employees: 3,000
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Industrial Materials
• EPS (TTM): 1.13
• Shares Outstanding: 20,814,259
• 10 Day Avg. Volume: 236,676
• 30 Day Avg. Volume: 157,926
• PEG Ratio: 1.16
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.80
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 6.98
• Enterprise Value/Ebitda: 3.88
• 1Y Price Target: $117.50
• Price Target Upside: 37.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $90.00 ▲(5.08%Upside)

Materion's overall score is driven by stable financial performance and positive corporate developments. However, high valuation concerns and moderate technical indicators temper the rating. Earnings call insights and strategic corporate actions provide optimism, offsetting some financial and valuation 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 by producing and selling high-performance materials and solutions to various industries. The company's revenue model is primarily based on the sale of its engineered materials, which include performance alloys, beryllium products, composite materials, and precision coatings. These materials are essential in the manufacture of components that require high reliability and performance, such as in aerospace, electronics, and defense applications. Key revenue streams include contracts with major corporations and government entities that rely on Materion's materials for critical applications. Additionally, the company engages in strategic partnerships and long-term supply agreements that enhance revenue stability and growth. Materion's commitment to research and development also plays a significant role in maintaining its competitive edge and driving new business opportunities.

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. The overall financial health is stable, with opportunities for improving profitability and cash flow efficiency.

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
EBITDA	102.84M	113.46M	200.80M	178.69M	126.36M	54.54M
Net Income	10.18M	5.89M	95.70M	85.99M	72.47M	15.46M
Balance Sheet
Total Assets	1.75B	1.70B	1.76B	1.69B	1.61B	1.06B
Cash, Cash Equivalents and Short-Term Investments	15.63M	16.71M	13.29M	13.10M	14.46M	25.88M
Total Debt	536.75M	517.04M	493.73M	504.91M	523.17M	115.78M
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: Positive
• Last Price: 85.65
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 85.65 is above the 20-day moving average (MA) of 79.97, above the 50-day MA of 79.34, and below the 200-day MA of 94.60, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTRN.

Materion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRN	69 Neutral	$1.70B	174.64	1.14%	0.68%	6.97%	-87.87%
NEXA	56 Neutral	$662.19M	―	-16.64%	2.02%	12.30%	42.72%
GSM	55 Neutral	$740.90M	27.86	-7.29%	1.41%	-4.98%	-192.96%
CMP	54 Neutral	$886.93M	―	-46.32%	1.61%	5.81%	-78.45%
LZM	47 Neutral	$332.30M	―	-814.96%	―	―	―
Sector *	43 Neutral	AU$1.37B	-6.17	-40.62%	4.19%	-4.78%	-42.91%
TMC	42 Neutral	$2.20B	―	-667.42%	―	―	-3.49%

Materion Corporate Events

Materion Secures New Credit Agreement for $675 Million

On June 26, 2025, Materion Corporation entered into a Fifth Amended and Restated Credit Agreement with several banks, including JPMorgan Chase and Wells Fargo, to refinance its revolving credit and term loan facilities. This agreement provides Materion with a $450 million revolving credit facility and a $225 million term loan facility, maturing in 2030, enhancing the company’s financial flexibility for future strategic transactions.

The most recent analyst rating on (MTRN) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Materion stock, see the MTRN Stock Forecast page.

Materion Appoints New Chief Accounting Officer

On May 20, 2025, Materion Corporation announced the appointment of Melissa A. Fashinpaur as the Chief Accounting Officer, effective June 1, 2025. Ms. Fashinpaur, who joined the company in 2022 as Vice President of Internal Audit, will report to the Chief Financial Officer, Shelly M. Chadwick, and assume the role previously held by Chadwick. This strategic appointment reflects Materion’s commitment to strengthening its financial leadership and operational efficiency, potentially impacting its market positioning positively.

The most recent analyst rating on (MTRN) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Materion stock, see the MTRN Stock Forecast page.

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.