DB:BEM

Stock Analysis Report

Executive Summary

Materion Corporation manufactures and sells advanced engineered materials used in consumer electronics, industrial components, defense, medical, automotive electronics, telecommunications infrastructure, energy, commercial aerospace, science, services, and appliance markets worldwide.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Materion's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

BEM

4.6%

DE Metals and Mining

1.7%

DE Market


1 Year Return

16.6%

BEM

-28.5%

DE Metals and Mining

7.2%

DE Market

Return vs Industry: BEM exceeded the German Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: BEM exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

BEMIndustryMarket
7 Day0.9%4.6%1.7%
30 Day-4.9%3.3%2.4%
90 Day-0.3%6.2%2.3%
1 Year17.4%16.6%-27.3%-28.5%10.6%7.2%
3 Year111.3%105.9%-31.8%-34.1%18.4%8.1%
5 Year104.9%94.8%-19.2%-23.7%42.3%22.9%

Price Volatility Vs. Market

How volatile is Materion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Materion undervalued compared to its fair value and its price relative to the market?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEM (€55) is trading below our estimate of fair value (€71.74)

Significantly Below Fair Value: BEM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BEM is poor value based on its PE Ratio (39.4x) compared to the Metals and Mining industry average (9.1x).

PE vs Market: BEM is poor value based on its PE Ratio (39.4x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BEM is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BEM is good value based on its PB Ratio (2.1x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

Future Growth

How is Materion forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEM's forecast earnings growth (28.7% per year) is above the savings rate (0.2%).

Earnings vs Market: BEM's earnings (28.7% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEM's revenue (4.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BEM's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BEM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Materion performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BEM's earnings have declined by -9.9% per year over the past 5 years.

Accelerating Growth: BEM's earnings growth over the past year (38.8%) exceeds its 5-year average (-9.9% per year).

Earnings vs Industry: BEM earnings growth over the past year (38.8%) exceeded the Metals and Mining industry -7.4%.


Return on Equity

High ROE: BEM's Return on Equity (5.3%) is considered low.


Return on Assets

ROA vs Industry: BEM's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: BEM has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Materion's financial position?


Financial Position Analysis

Short Term Liabilities: BEM's short term assets ($454.4M) exceeds its short term liabilities ($125.0M)

Long Term Liabilities: BEM's short term assets (454.4M) exceeds its long term liabilities (117.0M)


Debt to Equity History and Analysis

Debt Level: BEM's debt to equity ratio (0.4%) is considered satisfactory

Reducing Debt: BEM's debt to equity ratio has reduced from 16.3% to 0.4% over the past 5 years.

Debt Coverage: BEM's debt is well covered by operating cash flow (3065%).

Interest Coverage: BEM's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

Inventory Level: BEM has a high level of physical assets or inventory.

Debt Coverage by Assets: BEM's debt is covered by short term assets (assets are 180.610490x debt).


Next Steps

Dividend

What is Materion's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BEM's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: BEM's dividend (0.72%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: BEM is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: BEM is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BEM is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BEM's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Materion's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jugal Vijayvargiya (51yo)

2.6yrs

Tenure

US$4,258,935

Compensation

Mr. Jugal K. Vijayvargiya has been the Chief Executive Officer and President of Materion Corporation since March 03, 2017. Mr. Vijayvargiya had an extensive 26-year international career with Delphi Automot ...


CEO Compensation Analysis

Compensation vs. Market: Jugal's total compensation ($USD4.26M) is about average for companies of similar size in the German market ($USD1.57M).

Compensation vs Earnings: Jugal's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: BEM's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

63yo

Average Age

Experienced Board: BEM's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$233,92730 May 19
Craig Shular
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,127
Max PriceUS$56.68
SellUS$108,96015 May 19
Vinod Khilnani
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,855
Max PriceUS$58.74
SellUS$5,457,66503 May 19
GAMCO Investors, Inc.
EntityCompany
Shares97,000
Max PriceUS$61.60
SellUS$152,37025 Feb 19
Gregory Chemnitz
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares3,000
Max PriceUS$50.98
SellUS$242,57118 Jan 19
Craig Shular
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,939.28
Max PriceUS$40.84
SellUS$201,87101 Nov 18
Gregory Chemnitz
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares4,000
Max PriceUS$50.47

Ownership Breakdown


Management Team

  • Mike Anderson (67yo)

    President of Beryllium Products

    • Tenure: 0yrs
  • Stephen Freeman

    President of International Business Development

    • Tenure: 13.6yrs
  • Greg Chemnitz (61yo)

    VP, General Counsel & Secretary

    • Tenure: 12.1yrs
    • Compensation: US$1.42m
  • Joseph Kelley (46yo)

    CFO & VP of Finance

    • Tenure: 4.8yrs
    • Compensation: US$2.24m
  • Guido Beyss

    President of Europe

    • Tenure: 0yrs
  • Jugal Vijayvargiya (51yo)

    CEO, President & Director

    • Tenure: 2.6yrs
    • Compensation: US$4.26m
  • Ian Tribick

    Chief Technology & Marketing Officer

    • Tenure: 2.2yrs
  • Steve Shamrock

    Vice President of Investor Relations & Corporate Controller

    • Tenure: 2.8yrs
  • Marc Rands

    Vice President of Global Operations

    • Tenure: 1.8yrs
  • Deborah Armstrong

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Craig Shular (66yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$164.87k
  • Bob Phillippy (59yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$222.42k
  • Vinod Khilnani (67yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$233.33k
  • Bob Toth (58yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$165.00k
  • Geoff Wild (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$178.33k
  • N. Reddy (65yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$165.00k
  • Patrick Prevost (64yo)

    Independent Director

    • Tenure: 0.3yrs
  • Darlene J. Solomon (60yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$173.33k
  • Jugal Vijayvargiya (51yo)

    CEO, President & Director

    • Tenure: 2.6yrs
    • Compensation: US$4.26m

Company Information

Materion Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Materion Corporation
  • Ticker: BEM
  • Exchange: DB
  • Founded: 1931
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$1.254b
  • Listing Market Cap: US$1.125b
  • Shares outstanding: 20.40m
  • Website: https://www.materion.com

Number of Employees


Location

  • Materion Corporation
  • 6070 Parkland Boulevard
  • Mayfield Heights
  • Ohio
  • 44124
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTRNNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
BEMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

Materion Corporation manufactures and sells advanced engineered materials used in consumer electronics, industrial components, defense, medical, automotive electronics, telecommunications infrastructure, e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:13
End of Day Share Price2019/10/22 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.