Materion Corp

MTRN

Metal Forgings & Stampings

Mkt Cap

$2.358B

PE

28.23

Debt

$524.4M

Cash

$13.1M

EV

$2.87B

FCF

-$9.346M

Market Cap

$2.358B

P/E Ratio

28.23

Debt

$524.4M

Cash

$13.1M

EV

$2.87B

FCF

-$9.346M

Charts data: {"Earnings":[{"time":"2014-12-30","value":41721000},{"time":"2015-12-30","value":32158000},{"time":"2016-12-30","value":25740000},{"time":"2017-12-30","value":11451000},{"time":"2018-12-30","value":20846000},{"time":"2019-12-30","value":50660000},{"time":"2020-12-30","value":15462000},{"time":"2021-12-30","value":72474000},{"time":"2022-12-30","value":85990000},{"time":"2023-12-30","value":95702000}],"Sales":[{"time":"2014-12-30","value":1126890000},{"time":"2015-12-30","value":1025272000},{"time":"2016-12-30","value":969236000},{"time":"2017-12-30","value":1139447000},{"time":"2018-12-30","value":1207815000},{"time":"2019-12-30","value":1185424000},{"time":"2020-12-30","value":1176274000},{"time":"2021-12-30","value":1510644000},{"time":"2022-12-30","value":1757109000},{"time":"2023-12-30","value":1665187000}],"Net Margins":[{"time":"2014-12-30","value":0.037023134467428054},{"time":"2015-12-30","value":0.0313653352476221},{"time":"2016-12-30","value":0.02655699953365331},{"time":"2017-12-30","value":0.010049611785366059},{"time":"2018-12-30","value":0.01725926569880321},{"time":"2019-12-30","value":0.042735763743605666},{"time":"2020-12-30","value":0.01314489651220719},{"time":"2021-12-30","value":0.04797556538800671},{"time":"2022-12-30","value":0.048938341332267946},{"time":"2023-12-30","value":0.057472223840325444}],"Assets":[{"time":"2014-12-30","value":762069000},{"time":"2015-12-30","value":742640000},{"time":"2016-12-30","value":741298000},{"time":"2017-12-30","value":791084000},{"time":"2018-12-30","value":800341000},{"time":"2019-12-30","value":852670000},{"time":"2020-12-30","value":1057860000},{"time":"2021-12-30","value":1607479000},{"time":"2022-12-30","value":1691979000},{"time":"2023-12-30","value":1762726000}],"Stockholders Equity":[{"time":"2014-12-30","value":458133000},{"time":"2015-12-30","value":482957000},{"time":"2016-12-30","value":494089000},{"time":"2017-12-30","value":494981000},{"time":"2018-12-30","value":553906000},{"time":"2019-12-30","value":610677000},{"time":"2020-12-30","value":655630000},{"time":"2021-12-30","value":720440000},{"time":"2022-12-30","value":799990000},{"time":"2023-12-30","value":885053000}],"ROE":[{"time":"2014-12-30","value":0.09106744111426159},{"time":"2015-12-30","value":0.06658563805887481},{"time":"2016-12-30","value":0.052095877463371985},{"time":"2017-12-30","value":0.023134221313545367},{"time":"2018-12-30","value":0.03763454448949822},{"time":"2019-12-30","value":0.08295711153359304},{"time":"2020-12-30","value":0.023583423577322574},{"time":"2021-12-30","value":0.1005968574759869},{"time":"2022-12-30","value":0.10748884361054513},{"time":"2023-12-30","value":0.1081313774429328}],"ROA":[{"time":"2014-12-30","value":0.07473995136923298},{"time":"2015-12-30","value":0.060955510072174944},{"time":"2016-12-30","value":0.03656289373504313},{"time":"2017-12-30","value":0.04876726112524081},{"time":"2018-12-30","value":0.07683724812298758},{"time":"2019-12-30","value":0.07857670611139128},{"time":"2020-12-30","value":0.007822396158281814},{"time":"2021-12-30","value":0.04810327226669835},{"time":"2022-12-30","value":0.0707780652123933},{"time":"2023-12-30","value":0.07740511003979064}]}

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.

Sector

10-Q
9/29/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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6/28/19
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3/29/19
10-K
12/31/18
10-Q
9/28/18
10-Q
6/29/18
10-Q
3/30/18
10-K
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 18%

Earnings Stability 49%

Competitiveness and MOAT

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

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%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.79%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.73%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.99%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.06%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +7.67%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.44%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

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%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -56.11.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.88.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.34.

Growth

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.

Earnings growth has been increasing in past years.

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%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.63%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.59%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +35.64%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +15.83%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.83%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.03%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -4.27%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.13%.