Materion (MTRN) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: 0.43%
• Average Volume (3M): 139.82K
• Price to Earnings (P/E): 162.8
• Beta (1Y): 1.20
• 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: 113,539
• 30 Day Avg. Volume: 139,824
• 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: 0.97
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $161.00
• Price Target Upside: 7.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.28
• Revenue Forecast (FY): $1.89B

• Rating: 69 Neutral
• Price Target: $163.00 ▲(9.26% Upside)

Materion's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by technical indicators suggesting caution and a high P/E ratio indicating potential overvaluation. The company's robust cash flow and strategic initiatives in high-growth markets like defense and space are significant strengths, while valuation concerns and technical signals warrant careful consideration.

Positive Factors

Strong Cash Flow

Materion's robust cash flow growth indicates strong cash generation capabilities, enhancing its ability to invest in growth opportunities and maintain financial stability.

Record EBITDA Margins

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

Growth in Defense and Space Markets

Significant growth in defense and space markets positions Materion well in high-demand sectors, driving future revenue and market expansion.

Negative Factors

Challenges in Chinese Market

Geopolitical issues impacting sales in China could hinder growth in a key market, affecting overall revenue and market penetration.

Performance Materials Downtime

Equipment downtime in Performance Materials segment affects sales and operational efficiency, potentially impacting short-term financial performance.

Muted Shipments Impacting EBITDA

Reduced shipments due to operational challenges can impact EBITDA, highlighting the need for operational resilience to sustain profitability.

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 generates revenue through multiple key streams, primarily by providing a diverse range of specialty materials and engineered solutions to various industries. The company's revenue model is driven by the sale of its high-performance materials, which include metals, alloys, and components that are essential for high-tech applications. Materion also benefits from long-term contracts and partnerships with major clients in defense and aerospace sectors, ensuring a steady demand for its products. Additionally, the company invests in research and development to innovate and expand its product offerings, enabling it to capture new market opportunities and maintain competitive advantages. Factors contributing to Materion's earnings include its reputation for quality, technological expertise, and the growing demand for advanced materials in emerging technologies.

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	1.79B	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	531.74M	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	934.58M	868.88M	885.05M	799.99M	720.44M	655.63M
Cash Flow
Free Cash Flow	78.73M	7.01M	24.54M	38.35M	-12.67M	33.78M
Operating Cash Flow	157.12M	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	-62.67M	-4.19M	-24.85M	-35.56M	393.01M	-7.09M

Materion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 149.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 149.19 is above the 20-day moving average (MA) of 133.19, above the 50-day MA of 125.67, and above the 200-day MA of 104.54, indicating a bullish trend. The MACD of 5.59 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 87.80 is Negative, 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	$3.09B	162.76	2.08%	0.43%	3.93%	-73.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MP	61 Neutral	$11.82B	-98.23	-6.83%	―	26.44%	-95.87%
GSM	55 Neutral	$990.98M	-6.79	-16.00%	1.17%	-16.89%	-403.77%
IPX	49 Neutral	$1.57B	-39.17	-49.09%	―	―	-18.77%
USAR	47 Neutral	$2.48B	-7.04	-255.91%	―	―	―
TMC	45 Neutral	$3.05B	-9.46	―	―	―	-111.94%

Materion Corporate Events

Materion Announces Board Changes and New Appointment

On December 9, 2025, Materion Corporation announced that N. Mohan Reddy will retire from its Board of Directors at the 2026 annual meeting of shareholders, ending over 25 years of service. Concurrently, the Board expanded to ten members, appointing Thomas T. Edman as a new director effective January 21, 2026. Edman, with a notable background in leadership roles at TTM Technologies Inc. and Applied Materials Inc., will serve on the Audit and Risk Committee and Nominating, Governance and Corporate Responsibility Committee. His compensation aligns with other non-employee directors, with adjustments to restricted stock unit awards and the elimination of an initial equity award.

The most recent analyst rating on (MTRN) stock is a Hold with a $133.00 price target. To see the full list of analyst forecasts on Materion stock, see the MTRN Stock Forecast page.