Mativ Holdings, Inc. (MATV) stock analysis

P/E below its 5-year median

Mativ's P/E of 7.5 is below its own 5-year median of 9.5.

P/E below the industry

Mativ's P/E of 7.5 is below the Paper and Allied Products median of 18.7.

EV/EBITDA below its 5-year median

Mativ's EV/EBITDA of 7.4 is below its 5-year median of 13.9.

P/B above the industry

Mativ's price-to-book of 1.46 is above the Paper and Allied Products median of 1.46.

Trading below fair value

The share price of $12.38 is below our fair value estimate of $22.57.

Margin of safety over 20%

The price is 45.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -0.4% over the last twelve months; the Paper and Allied Products median is 0.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 19.4% over the last twelve months, against 17.8% a year earlier.

Return on equity under 15%

Return on equity was 21.2% over the last twelve months and averaged -14.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Mativ's return on equity of 21.2% is above the Paper and Allied Products median of 0.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 4.6% over the last twelve months, against a 5-year average of -5.1%.

Net margin above the industry

Mativ's net margin of 4.6% is above the Paper and Allied Products median of 0.2%.

High debt

Debt is 209% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 91.3% five years ago to 209%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.0% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.93 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.40; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Mativ paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Mativ yields 3.2%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 24.6% of net income.

Covered by free cash flow

Dividends take 22.8% of free cash flow.