Materion (MTRN) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 0.5%
• Average Volume (3M): 241.33K
• Price to Earnings (P/E): 146.8
• Beta (1Y): 1.34
• Revenue Growth: 5.55%
• EPS Growth: -79.38%
• Country: US
• Employees: 3,000
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Industrial Materials
• EPS (TTM): 1.37
• Shares Outstanding: 20,726,917
• 10 Day Avg. Volume: 191,020
• 30 Day Avg. Volume: 241,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 19.59
• 1Y Price Target: $123.50
• Price Target Upside: 12.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $125.00 ▲(14.06% Upside)

Materion's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic initiatives and market diversification contribute positively. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which is a concern for valuation-focused investors.

Positive Factors

Earnings

Easing China tariff impacts and a cyclical recovery in semiconductors are expected to benefit the company's earnings.

Outlook and Rating

The upgrade to Overweight from Sector Weight suggests a more favorable outlook for Materion Corporation shares.

Strategic Initiatives

Recent acquisition within Asia to augment the finishing of tantalum targets is expected to enhance regional positioning and margin expansion for Electronic Materials.

Negative Factors

China Tariffs

China tariffs are expected to have a significant negative impact on Materion Corp's earnings, affecting their sales and margins.

Order and Sales Impact

Many customers have frozen orders, which may lead to lost sales and potential share loss for Materion Corp.

Stock Rating and Valuation

Analyst reduces the stock rating of Materion Corp from Overweight to Sector Weight due to downward earnings revisions and a lower valuation range.

Materion Business Overview & Revenue Model

Company Description

Materion Corporation (MTRN) is a global leader in advanced materials, specializing in the production of high-performance engineered materials and services. The company operates primarily in the sectors of aerospace and defense, electronics, and industrial applications. Materion's core products include specialty materials such as alloys, metal powders, and thin films, which are essential for a range of applications including semiconductors, telecommunications, and medical devices.

How the Company Makes Money

Materion generates revenue through various streams, primarily by selling its advanced materials and engineered solutions to diverse industries. The company has a strong focus on research and development, allowing it to innovate and introduce new products that meet the specific needs of its customers. Key revenue streams include the sale of specialty alloys, beryllium products, and other metal-based materials. Materion also benefits from long-term contracts and partnerships with leading companies in the aerospace, defense, and electronics sectors, providing a stable revenue base. Additionally, the company's commitment to sustainability and high-quality manufacturing processes enhances its competitive advantage, contributing to its overall profitability.

Materion Financial Statement Overview

Summary

Materion demonstrates a solid financial position with consistent revenue growth, improved cash flow generation, and a strong equity base. However, the low net profit margin and declining ROE suggest some operational inefficiencies and challenges in generating returns on equity.

Income Statement

Materion has shown consistent revenue growth over the years, with a TTM revenue increase of 2.43% compared to the previous year. The gross profit margin is at 19.28% for the TTM, indicating strong production efficiency. However, the net profit margin remains low at 0.94%, reflecting challenges in managing operational and non-operational expenses. The EBIT and EBITDA margins have slightly improved, suggesting better efficiency in earnings before interest and taxes.

Balance Sheet

The company's balance sheet is robust with an equity ratio of 100%, signifying no leverage and complete reliance on equity financing, which is very unusual and likely a data artifact. The debt-to-equity ratio is effectively zero due to the equity ratio anomaly, indicating no debt risk. Return on equity has declined to 0.94%, showing less effective asset utilization compared to previous years.

Cash Flow

Materion's cash flow statement shows a promising trend with a significant increase in free cash flow by 1179% over the previous year, indicating improved operational efficiency and capital management. The operating cash flow to net income ratio is high at 9.02, reflecting strong cash conversion. The free cash flow to net income ratio also shows a substantial improvement, highlighting the company's capability to generate cash relative to its profit.

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	332.75M	325.99M	349.04M	343.88M	283.76M	192.63M
EBITDA	111.35M	118.34M	200.80M	178.69M	126.36M	54.54M
Net Income	16.28M	5.89M	95.70M	85.99M	72.47M	15.46M
Balance Sheet
Total Assets	1.74B	1.70B	1.76B	1.69B	1.61B	1.06B
Cash, Cash Equivalents and Short-Term Investments	12.59M	16.71M	13.29M	13.10M	14.46M	25.88M
Total Debt	511.35M	517.04M	493.73M	504.91M	523.17M	115.78M
Total Liabilities	830.56M	828.75M	877.67M	891.99M	887.04M	402.23M
Stockholders Equity	1.74B	868.88M	885.05M	799.99M	720.44M	655.63M
Cash Flow
Free Cash Flow	89.76M	7.01M	24.54M	38.35M	-12.67M	33.78M
Operating Cash Flow	146.78M	87.82M	144.41M	115.96M	90.24M	101.06M
Investing Cash Flow	-66.26M	-79.61M	-119.22M	-79.73M	-494.27M	-194.71M
Financing Cash Flow	-86.76M	-4.19M	-24.85M	-35.56M	393.01M	-7.09M

Materion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.59
• 50DMA: Positive
• 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 Positive. The current price of 109.59 is above the 20-day moving average (MA) of 106.47, above the 50-day MA of 93.13, and above the 200-day MA of 93.42, indicating a bullish trend. The MACD of 5.36 indicates Positive momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 59.07 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	78 Outperform	$2.33B	146.83	1.79%	0.50%	5.55%	-79.38%
GSM	50 Neutral	$776.36M	27.86	-12.38%	1.31%	-8.59%	-256.43%
NEXA	48 Neutral	$647.23M	―	-9.63%	2.09%	8.66%	66.06%
CMP	46 Neutral	$785.83M	―	-40.17%	1.61%	7.27%	27.35%
LZM	46 Neutral	$343.38M	―	-814.96%	―	―	―
Sector *	44 Neutral	AU$1.54B	-7.44	-18.84%	4.47%	-3.00%	-40.37%
TMC	42 Neutral	$1.92B	―	-364.03%	―	―	-9.91%

Materion Corporate Events

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.

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.

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.

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.