Metal Forgings & Stampings
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 Materials, Electronic Materials, and Precision Optics segments. The Performance Materials 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 Electronic 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.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 3.1% | 2.7% | 1% | 1.7% | 4.3% | 1.3% | 4.8% | 4.9% | 5.7% | 5.2% |
ROA | 6.1% | 3.7% | 4.9% | 7.7% | 7.9% | 0.78% | 4.8% | 7.1% | 7.7% | 5.5% |
ROE | 6.7% | 5.2% | 2.3% | 3.8% | 8.3% | 2.4% | 10% | 11% | 11% | 9.4% |
The average Net Margin over the past 5 years is +3.79%.
The trend of Net Margin over the past 5 years is +0.73%.
The average ROA over the past 5 years is +5.99%.
The trend of ROA over the past 5 years is +0.06%.
The average ROE over the past 5 years is +7.67%.
The trend of ROE over the past 5 years is +1.44%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 0.59 | 0.18 | 0.12 | 0.09 | 0.04 | 1.20 | -37.09 | 11.91 | 13.81 | -56.11 |
Debt Equity | 0.05 | 0.01 | 0.01 | 0.01 | 0.01 | 0.06 | 0.65 | 0.57 | 0.53 | 0.59 |
MIN | ||||||||||
Graham Stability | - | - | 34% | 90% | 100% | 56% | 100% | 100% | 100% | 34% |
The Debt/FCF trailing twelve month is -56.11.
The trend of Debt/FCF over the past 5 years is 1.88.
Graham’s Stability measure stands at 0.34.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 8% | 6.6% | 12% | -5.2% | 1.6% |
Net Income | 21% | 36% | 84% | 11% | 16% |
Stockholders Equity | 8.7% | 9.8% | 11% | 11% | 1% |
FCF | 1.7% | -4.3% | 0.08% | -12% | -4.1% |
The Revenue CAGR over the past 5 years is +6.63%.
The trend of Revenue growth rate over the past 5 years is +1.59%.
The Earnings CAGR over the past 5 years is +35.64%.
The trend of Earnings growth rate over the past 5 years is +15.83%.
The Equity CAGR over the past 5 years is +9.83%.
The trend of Equity growth rate over the past 5 years is +1.03%.
The FCF CAGR over the past 5 years is -4.27%.
The trend of FCF growth rate over the past 5 years is -4.13%.