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Mattr Corp. (TSE:MATR)
:MATR

Mattr (MATR) AI Stock Analysis

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Mattr

(TSX:MATR)

Rating:58Neutral
Price Target:
C$9.50
▼(-1.66%Downside)
Mattr's overall stock score is driven by a mix of factors. The company's financial performance shows significant challenges, particularly in cash flow and profitability, which weigh heavily on the score. Technical analysis further indicates bearish momentum, adding to the risk profile. However, the valuation appears attractive, suggesting potential undervaluation. Positive corporate events, including strategic acquisitions and strong shareholder support, offer a counterbalance and indicate potential for future growth.
Positive Factors
Earnings Performance
MATTR delivered solid Q1/25 results, supported by higher flexpipe sales and a boost from AmerCable.
Growth Potential
The company's long-term growth profile remains solid, with increased manufacturing capacity and stability from AmerCable.
Negative Factors
Financial Guidance
The company expects customers could delay spending in future quarters and has guided Q2 results to be lower.
Operational Costs
Costs continue to weigh on operational performance, posing challenges for the company.

Mattr (MATR) vs. iShares MSCI Canada ETF (EWC)

Mattr Business Overview & Revenue Model

Company DescriptionMattr Corp. operates as a material sciences company that serves the infrastructure, energy, and transportation markets worldwide. It operates through three segments: Composite Systems, Automotive and Industrial, and Pipeline and Pipe Services. The Composite Systems segment manufactures flexible composite that are used for oil and gas gathering, and other applications; fiberglass reinforced plastic underground storage tanks for the retail fuel, water and wastewater, and oil and gas markets. The Automotive and Industrial segment manufactures heat-shrinkable products, including thin, medium, and heavy-walled tubing; sleeves and molded products, as well as heat-shrink accessories and equipment; and low-voltage wires and cables for control, instrumentation, thermocouple, power, and industrial applications. The Pipeline and Pipe Services segment offers ultrasonic and radiographic pipeline girth weld inspection services to pipeline operators and construction contractors. The company was formerly known as Shaw Industries Ltd. and changed its name to Shawcor Ltd. in 2001. Shawcor Ltd. was founded in 1930 and is headquartered in Toronto, Canada.
How the Company Makes MoneyMattr generates revenue primarily through the sale of its advanced materials and products to various industries. Its key revenue streams include direct sales of materials to construction companies, automotive manufacturers, and energy firms. The company may also engage in licensing its technology to other businesses, creating an additional source of income. Strategic partnerships and collaborations with industry leaders can further enhance its earnings by expanding its market reach and driving adoption of its innovative solutions. Additionally, Mattr might benefit from government contracts or grants aimed at promoting sustainable infrastructure development, which can contribute to its financial performance.

Mattr Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: -14.06%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strategic progress and market share gains despite revenue and EBITDA declines. Challenges include sector-specific weaknesses and increased costs, but strategic moves like acquisitions and divestitures indicate long-term growth potential.
Q3-2024 Updates
Positive Updates
Revenue and Adjusted EBITDA Performance
Mattr delivered $250 million in revenue and $37 million in adjusted EBITDA for Q3 2024, with adjusted earnings per share of $0.23.
Strategic Acquisitions and Divestitures
Announced the planned acquisition of AmerCable, expected to be immediately and materially accretive. Pending sale of the last remaining pipe coating business to Vallourec.
Water Products Business Record
The water products business set a new quarterly revenue record, driven by strong demand for storage and treatment solutions.
Connection Technologies Segment Growth
The Connection Technologies segment set a new Q3 revenue record, nearly 10% higher year-over-year, driven by industrial sector demand.
Positive Market Share Gains
Flexpipe's share gains within the U.S. and Canadian onshore markets resulted in revenue gains despite market downturns.
Negative Updates
Decreased Adjusted EBITDA
Adjusted EBITDA from continuing operations decreased by 26.9% compared to the previous year, primarily due to changes in product and customer mix and higher warranty costs.
Challenges in Composites Technologies
Sequential revenue decline in Composite Technologies due to reduced international Flexpipe sales and unfavorable customer mix in Xerxes.
Anticipated Weakness in Key Sectors
Continued weakness in North American onshore oilfield, Eurozone industrial, and global automotive markets expected to persist into 2025.
Seasonal and Market-Driven Slowdowns
Projected seasonal slowing in Q4 2024, with reduced revenue and EBITDA expected due to macroeconomic factors affecting oilfield and automotive sectors.
Under-absorption Costs
Increased under-absorption costs due to slower-than-expected ramp-up of new manufacturing facilities, impacting margins.
Company Guidance
During the third quarter of 2024 earnings call for MATR.TO, significant guidance was provided regarding the company's financial and operational outlook. Mattr reported consolidated revenue of $250 million, an adjusted EBITDA of $37 million, and adjusted earnings per share of $0.23. The company highlighted strategic moves, such as the establishment of two new manufacturing sites in the Composite Technologies segment and the planned acquisition of AmerCable, expected to be immediately accretive. Mattr anticipates continued weakness in the North American oilfield and global automotive markets into 2025, alongside elevated North American critical infrastructure demand. To optimize operations, a $20 million annual cost reduction plan is underway, primarily targeting the fixed cost base. The company remains focused on long-term goals to double revenue by 2030 and achieve EBITDA margins above 20%, supported by investments in technology and operational efficiency.

Mattr Financial Statement Overview

Summary
Mattr faces structural challenges with fluctuating revenues and profitability. The balance sheet is stable but carries increased leverage, and negative free cash flow raises liquidity concerns. Strategic improvements are needed for better financial stability.
Income Statement
55
Neutral
The income statement reveals a mixed performance with fluctuating revenues and profitability. Gross profit margin has declined over the years, indicating pressure on cost management. Net income has been volatile with alternating profits and losses, reflecting operational challenges. Recent EBIT and EBITDA margins are stable but below industry peers, suggesting limited efficiency improvements.
Balance Sheet
65
Positive
The balance sheet shows a moderate financial position with a stable equity base. The debt-to-equity ratio has increased, indicating higher leverage which could pose risks if not managed carefully. Return on equity has been negative due to net losses, but the equity ratio remains robust, providing some buffer against liabilities.
Cash Flow
50
Neutral
Cash flow analysis highlights concerns with negative free cash flow in the latest period, indicating potential liquidity issues. Operating cash flow has decreased, reflecting challenges in sustaining positive cash generation. The free cash flow to net income ratio is unfavorable, pointing to inefficiencies in translating earnings into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
885.32M925.27M1.26B1.14B1.18B
Gross Profit
243.84M296.44M364.70M318.12M322.54M
EBIT
40.12M81.54M68.95M-45.23M-261.34M
EBITDA
85.07M121.27M147.78M29.86M-117.87M
Net Income Common Stockholders
-3.73M87.19M-29.99M-79.11M-234.17M
Balance SheetCash, Cash Equivalents and Short-Term Investments
375.24M334.06M263.99M124.45M214.51M
Total Assets
1.63B1.28B1.55B1.27B1.53B
Total Debt
640.37M232.46M270.27M346.58M505.55M
Net Debt
265.13M-101.60M6.28M222.13M291.04M
Total Liabilities
908.38M548.62M849.44M625.68M808.90M
Stockholders Equity
721.10M730.16M699.38M639.27M712.70M
Cash FlowFree Cash Flow
-59.05M48.35M161.02M39.61M20.42M
Operating Cash Flow
51.35M124.61M211.10M64.68M44.44M
Investing Cash Flow
-154.99M109.82M19.50M3.83M106.57M
Financing Cash Flow
259.84M-161.78M-111.65M-163.53M-36.86M

Mattr Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.66
Price Trends
50DMA
9.88
Negative
100DMA
10.57
Negative
200DMA
12.06
Negative
Market Momentum
MACD
-0.09
Negative
RSI
47.41
Neutral
STOCH
76.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MATR, the sentiment is Negative. The current price of 9.66 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 9.88, and below the 200-day MA of 12.06, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MATR.

Mattr Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSTCW
75
Outperform
C$822.46M8.5519.44%4.08%2.15%-5.97%
TSPSI
75
Outperform
C$965.75M13.5214.68%4.25%12.43%-44.90%
TSNOA
66
Neutral
$704.58M16.539.52%1.81%19.57%-26.98%
64
Neutral
C$282.17M151.92-3.90%-5.98%-121.37%
TSCFW
62
Neutral
C$292.02M16.153.00%-5.50%-88.55%
58
Neutral
C$599.50M11.396.02%-5.02%9.46%
57
Neutral
$7.14B3.09-4.49%5.67%0.82%-49.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MATR
Mattr
9.66
-6.84
-41.45%
TSE:NOA
North American Construction Group
24.42
-4.03
-14.16%
TSE:TCW
Trican Well Service
4.43
-0.13
-2.89%
TSE:PSI
Pason Systems
12.38
-4.38
-26.13%
TSE:STEP
STEP Energy Services
3.92
-0.39
-9.05%
TSE:CFW
Calfrac Well Services
3.42
-0.69
-16.79%

Mattr Corporate Events

M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Mattr Corp. Reports Strong Shareholder Support and Growth Prospects
Positive
May 20, 2025

Mattr Corp. announced the voting results from its recent Annual Meeting, where shareholders overwhelmingly supported all business items, including the election of the board of directors. The company is experiencing strong customer adoption of its new technologies and sees significant growth opportunities, particularly with its recent acquisition of AmerCable. This positions Mattr to potentially deliver increased shareholder returns in the future.

The most recent analyst rating on (TSE:MATR) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on Mattr stock, see the TSE:MATR Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Mattr Corp Reports Robust Q1 2025 Results with Strategic Acquisition
Positive
May 14, 2025

Mattr Corp reported strong financial performance for the first quarter of 2025, highlighted by the acquisition of AmerCable, which contributed significantly to the company’s revenue and operational growth. The company’s revenue reached $343 million with a net income of $53 million, driven by substantial increases in both the Connection Technologies and Composite Technologies segments. The acquisition of AmerCable and increased customer adoption of new technologies have positioned Mattr for continued growth, despite geopolitical uncertainties and upcoming US tariff changes.

The most recent analyst rating on (TSE:MATR) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on Mattr stock, see the TSE:MATR Stock Forecast page.

Shareholder Meetings
Mattr Corp. Announces Hybrid Format for Annual Meeting
Neutral
Apr 10, 2025

Mattr Corp. announced its upcoming Annual Meeting, scheduled for May 15, 2025, which will be conducted in a hybrid format allowing shareholders to participate either in person or via a live webcast. The company is utilizing ‘notice-and-access’ provisions to reduce physical mailing of meeting materials, reflecting a commitment to efficiency and sustainability in shareholder communications.

M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Mattr Corp. Reports 2024 Financial Results and Strategic Acquisition
Neutral
Mar 13, 2025

Mattr Corp. reported a full-year 2024 revenue of $960 million with a net loss of $4 million, and a significant acquisition of AmerCable for $280 million to bolster its Connection Technologies segment. Despite a decrease in Adjusted EBITDA from Continuing Operations, the company is strategically positioned for growth with new manufacturing facilities and share repurchases, aiming to enhance margins and reduce volatility.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.