DB:BEM

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Executive Summary

Materion Corporation manufactures and sells advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center markets in the United States, Asia, Europe, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


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

Stable Share Price: BEM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

BEM

1.6%

DE Metals and Mining

0.1%

DE Market


1 Year Return

-25.7%

BEM

18.5%

DE Metals and Mining

6.2%

DE Market

Return vs Industry: BEM underperformed the German Metals and Mining industry which returned 18.5% over the past year.

Return vs Market: BEM underperformed the German Market which returned 6.2% over the past year.


Shareholder returns

BEMIndustryMarket
7 Day1.9%1.6%0.1%
30 Day-8.5%3.7%1.5%
90 Day-18.1%16.4%5.3%
1 Year-25.1%-25.7%21.1%18.5%8.7%6.2%
3 Year39.4%36.3%-24.6%-29.9%6.4%-2.3%
5 Year67.8%59.9%11.9%-1.3%36.6%18.0%

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?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEM (€43) is trading below our estimate of fair value (€56.35)

Significantly Below Fair Value: BEM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BEM is poor value based on its PE Ratio (48.6x) compared to the XE Metals and Mining industry average (12.8x).

PE vs Market: BEM is poor value based on its PE Ratio (48.6x) compared to the German market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: BEM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BEM is overvalued based on its PB Ratio (1.7x) compared to the XE Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Materion forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

70.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEM's forecast earnings growth (70.2% per year) is above the savings rate (0.2%).

Earnings vs Market: BEM's earnings (70.2% per year) are forecast to grow faster than the German market (27.7% per year).

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

Revenue vs Market: BEM's revenue (4.7% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: BEM's revenue (4.7% 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?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEM has a large one-off loss of $30.5M impacting its June 26 2020 financial results.

Growing Profit Margin: BEM's current net profit margins (1.9%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: BEM's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: BEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BEM had negative earnings growth (-30.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-15.6%).


Return on Equity

High ROE: BEM's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Materion's financial position?


Financial Position Analysis

Short Term Liabilities: BEM's short term assets ($656.4M) exceed its short term liabilities ($268.5M).

Long Term Liabilities: BEM's short term assets ($656.4M) exceed its long term liabilities ($167.8M).


Debt to Equity History and Analysis

Debt Level: BEM's debt to equity ratio (25.1%) is considered satisfactory.

Reducing Debt: BEM's debt to equity ratio has increased from 9.6% to 25.1% over the past 5 years.

Debt Coverage: BEM's debt is well covered by operating cash flow (69.6%).

Interest Coverage: BEM's interest payments on its debt are well covered by EBIT (26.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEM's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.17%).

High Dividend: BEM's dividend (0.88%) is low compared to the top 25% of dividend payers in the German market (3.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BEM has been paying a dividend for less than 10 years.

Growing Dividend: BEM's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.6%), BEM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Jugal Vijayvargiya (52 yo)

3.5yrs

Tenure

US$5,082,700

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 ($USD5.08M) is above average for companies of similar size in the German market ($USD1.31M).

Compensation vs Earnings: Jugal's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jugal Vijayvargiya
CEO, President & Director3.5yrsUS$5.08m0.11%
$ 1.0m
Gregory Chemnitz
VP, General Counsel & Secretary13yrsUS$1.66m0.10%
$ 905.5k
Stephen Shamrock
Interim CFO0.17yrno datano data
Marc Rands
Vice President of Global Operations2.67yrsno datano data
Ian Tribick
President of Precision Coatings & Chief Technology Officer3.08yrsno datano data
Steven Holt
Chief Information Officer2.83yrsno datano data
Stephen Freeman
President of International Business Development14.5yrsno datano data
Allen Reid
Chief Human Resources Officer0.25yrno datano data
Guido Beyss
President of Europeno datano datano data
Michael Anderson
President of Beryllium Productsno datano datano data
Alfonso Lubrano
President & CEO of Technical Materials Incno datano datano data
Alex Boulton
President of Brush Resources Incno datano datano data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: BEM's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jugal Vijayvargiya
CEO, President & Director3.5yrsUS$5.08m0.11%
$ 1.0m
Craig Shular
Independent Director12.33yrsUS$164.93k0.016%
$ 142.2k
Robert Phillippy
Independent Director2.67yrsUS$164.93k0.0072%
$ 63.7k
Vinod Khilnani
Independent Non-Executive Chairman2.67yrsUS$235.00k0.058%
$ 519.7k
Robert Toth
Independent Director7.58yrsUS$165.00k0.098%
$ 870.6k
N. Reddy
Independent Director20.67yrsUS$165.00kno data
Emily Liggett
Independent Director0.58yrno data0.0079%
$ 70.5k
Patrick Prevost
Independent Director1.25yrsUS$204.95kno data
Darlene J. Solomon
Independent Director9.17yrsUS$175.00k0.11%
$ 940.4k

3.5yrs

Average Tenure

65yo

Average Age

Experienced Board: BEM's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BEM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.057b
  • Listing Market Cap: US$890.739m
  • Shares outstanding: 20.32m
  • 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 semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center mar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 03:31
End of Day Share Price2020/09/18 00:00
Earnings2020/06/26
Annual Earnings2019/12/31


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.