Materion Corporation Fundamental Analysis
Materion Corporation (MTRN) shows weak financial fundamentals with a PE ratio of 59.41, profit margin of 3.99%, and ROE of 8.17%. The company generates $1.9B in annual revenue with moderate year-over-year growth of 6.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MTRN's fundamental strength across five key dimensions:
Efficiency Score
WeakMTRN struggles to generate sufficient returns from assets.
Valuation Score
ModerateMTRN shows balanced valuation metrics.
Growth Score
ExcellentMTRN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMTRN maintains a strong and stable balance sheet.
Profitability Score
WeakMTRN struggles to sustain strong margins.
Key Financial Metrics
Is MTRN Expensive or Cheap?
P/E Ratio
MTRN trades at 59.41 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MTRN's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Materion Corporation at 4.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.39 times EBITDA. This signals the market has high growth expectations.
How Well Does MTRN Make Money?
Net Profit Margin
For every $100 in sales, Materion Corporation keeps $3.99 as profit after all expenses.
Operating Margin
Core operations generate 6.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.17 in profit for every $100 of shareholder equity.
ROA
Materion Corporation generates $4.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Materion Corporation generates limited operating cash flow of $80.73M, signaling weaker underlying cash strength.
Free Cash Flow
Materion Corporation generates weak or negative free cash flow of $6.74M, restricting financial flexibility.
FCF Per Share
Each share generates $0.32 in free cash annually.
FCF Yield
MTRN converts 0.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MTRN Stacks Against Its Sector Peers
| Metric | MTRN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.41 | 25.01 | Worse (Expensive) |
| ROE | 8.17% | 1002.00% | Weak |
| Net Margin | 3.99% | -107149.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.38 | Weak (High Leverage) |
| Current Ratio | 3.04 | 6.20 | Strong Liquidity |
| ROA | 4.07% | -5669.00% (disorted) | Weak |
MTRN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Materion Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.83%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
374.19%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
0.11%
Industry Style: Cyclical, Commodity, Value
Growing