MATERION Corp (MTRN) stock analysis

P/E above its 5-year median

Materion's P/E of 43.1 is above its own 5-year median of 28.3.

P/E above the industry

Materion's P/E of 43.1 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA above its 5-year median

Materion's EV/EBITDA of 22.2 is above its 5-year median of 16.4.

P/B above the industry

Materion's price-to-book of 4.26 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading above fair value

The share price of $210.51 is above our fair value estimate of $128.03.

Margin of safety under 20%

The price is 64.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -4.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 431% over the last twelve months, against a 5-year average of 37.1% a year.

Growing faster than the industry

Revenue grew 28.1% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance raised

Materion raised its full-year adjusted earnings per share outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 15.9% over the last twelve months, against 19.5% a year earlier.

Return on equity under 15%

Return on equity was 10.5% over the last twelve months and averaged 8.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Materion's return on equity of 10.5% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings grew over 5 years

Net income grew 37.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 4.6% over the last twelve months, against a 5-year average of 4.0%.

Net margin above the industry

Materion's net margin of 4.6% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

High debt

Debt is 40.5% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 6.2% five years ago to 40.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 38.9% of total debt.

Interest not well covered

Operating income covers interest expense 4.8 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.81 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.65; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Materion paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% 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; Materion yields 0.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 11.5% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.