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Materion

NYSE:MTRN
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MTRN
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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. The last earnings update was 22 days ago. More info.


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MTRN Share Price and Events
7 Day Returns
-3.8%
NYSE:MTRN
-3.6%
US Metals and Mining
-2.1%
US Market
1 Year Returns
17.5%
NYSE:MTRN
-30.6%
US Metals and Mining
1.3%
US Market
MTRN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Materion (MTRN) -3.8% 8.8% 9.5% 17.5% 164.3% 87.3%
US Metals and Mining -3.6% -11.5% -15.7% -30.6% 3.6% -21%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • MTRN outperformed the Metals and Mining industry which returned -30.6% over the past year.
  • MTRN outperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
MTRN
Industry
5yr Volatility vs Market
Related Companies

MTRN Value

 Is Materion undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Materion to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Materion.

NYSE:MTRN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MTRN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.946 (1 + (1- 21%) (4.02%))
0.984
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.984 * 5.96%)
8.6%

Discounted Cash Flow Calculation for NYSE:MTRN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Materion is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MTRN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.6%)
2019 52.75 Analyst x4 48.57
2020 59.60 Analyst x4 50.54
2021 71.30 Analyst x1 55.67
2022 94.70 Analyst x1 68.09
2023 90.10 Analyst x1 59.66
2024 87.70 Est @ -2.67% 53.47
2025 86.78 Est @ -1.05% 48.72
2026 86.85 Est @ 0.08% 44.90
2027 87.61 Est @ 0.88% 41.71
2028 88.87 Est @ 1.43% 38.96
Present value of next 10 years cash flows $510.29
NYSE:MTRN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $88.87 × (1 + 2.73%) ÷ (8.6% – 2.73%)
$1,556.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,556.36 ÷ (1 + 8.6%)10
$682.30
NYSE:MTRN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $510.29 + $682.30
$1,192.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,192.59 / 20.35
$58.59
NYSE:MTRN Discount to Share Price
Calculation Result
Value per share (USD) From above. $58.59
Current discount Discount to share price of $63.85
= -1 x ($63.85 - $58.59) / $58.59
-9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Materion is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Materion's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Materion's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MTRN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $1.34
NYSE:MTRN Share Price ** NYSE (2019-05-24) in USD $63.85
United States of America Metals and Mining Industry PE Ratio Median Figure of 46 Publicly-Listed Metals and Mining Companies 9.23x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Materion.

NYSE:MTRN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MTRN Share Price ÷ EPS (both in USD)

= 63.85 ÷ 1.34

47.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Materion is overvalued based on earnings compared to the US Metals and Mining industry average.
  • Materion is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Materion's expected growth come at a high price?
Raw Data
NYSE:MTRN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 47.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
29.9%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 25 Publicly-Listed Metals and Mining Companies 0.58x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

NYSE:MTRN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 47.54x ÷ 29.9%

1.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Materion is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Materion's assets?
Raw Data
NYSE:MTRN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $27.85
NYSE:MTRN Share Price * NYSE (2019-05-24) in USD $63.85
United States of America Metals and Mining Industry PB Ratio Median Figure of 104 Publicly-Listed Metals and Mining Companies 1.43x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:MTRN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MTRN Share Price ÷ Book Value per Share (both in USD)

= 63.85 ÷ 27.85

2.29x

* Primary Listing of Materion.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Materion is overvalued based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Materion's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Materion has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MTRN Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Materion expected to grow at an attractive rate?
  • Materion's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Materion's earnings growth is expected to exceed the United States of America market average.
  • Materion's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MTRN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MTRN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 29.9%
NYSE:MTRN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.1%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MTRN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MTRN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,509 1
2022-12-31 1,417 1
2021-12-31 1,334 1
2020-12-31 1,233 106 69 4
2019-12-31 1,210 98 63 4
NYSE:MTRN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-29 1,206 72 27
2018-12-31 1,208 76 21
2018-09-28 1,218 82 33
2018-06-29 1,215 97 23
2018-03-30 1,202 76 19
2017-12-31 1,139 68 11
2017-09-29 1,065 76 26
2017-06-30 1,020 59 25
2017-03-31 974 68 23
2016-12-31 969 68 26
2016-09-30 949 73 26
2016-07-01 944 79 25
2016-04-01 971 78 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Materion's earnings are expected to grow significantly at over 20% yearly.
  • Materion's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MTRN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Materion Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MTRN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 3.32 3.40 3.21 4.00
2019-12-31 3.08 3.25 2.95 4.00
NYSE:MTRN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-29 1.34
2018-12-31 1.03
2018-09-28 1.66
2018-06-29 1.13
2018-03-30 0.95
2017-12-31 0.57
2017-09-29 1.32
2017-06-30 1.26
2017-03-31 1.17
2016-12-31 1.29
2016-09-30 1.28
2016-07-01 1.25
2016-04-01 1.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Materion will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Materion's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Materion has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MTRN Past Performance

  How has Materion performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Materion's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Materion's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Materion's 1-year earnings growth exceeds its 5-year average (44% vs -9.1%)
  • Materion's earnings growth has not exceeded the US Metals and Mining industry average in the past year (44% vs 44%).
Earnings and Revenue History
Materion's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Materion Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MTRN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 1,205.79 27.19 197.47 15.28
2018-12-31 1,207.82 20.85 196.17 15.19
2018-09-28 1,218.41 33.44 155.12 15.63
2018-06-29 1,215.49 22.80 147.47 14.81
2018-03-30 1,202.25 18.97 146.75 14.49
2017-12-31 1,139.45 11.45 141.63 13.98
2017-09-29 1,065.11 26.46 135.97 13.05
2017-06-30 1,020.46 25.19 138.21 12.85
2017-03-31 974.39 23.42 132.90 12.48
2016-12-31 969.24 25.74 130.75 12.80
2016-09-30 948.95 25.68 124.26 13.22
2016-07-01 943.68 25.02 119.14 12.49
2016-04-01 970.76 28.54 121.30 12.90
2015-12-31 1,025.27 32.16 129.94 12.80
2015-10-02 1,099.66 37.71 137.38 12.81
2015-07-03 1,146.88 42.88 142.97 13.55
2015-04-03 1,157.99 43.78 143.06 13.41
2014-12-31 1,126.89 42.13 136.38 12.85
2014-09-26 1,124.60 33.64 133.12 13.00
2014-06-27 1,108.47 26.07 130.29 12.95
2014-03-28 1,126.64 20.25 128.93 12.66
2013-12-31 1,166.88 20.21 129.67 13.43
2013-09-27 1,184.50 18.44 131.85 13.10
2013-06-28 1,199.67 21.56 132.88 12.93
2013-03-29 1,218.62 25.33 132.41 12.97
2012-12-31 1,273.08 24.66 132.29 12.51
2012-09-28 1,303.74 22.92 129.91 12.45
2012-06-29 1,405.93 28.34 129.40 12.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Materion has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Materion used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Materion's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Materion's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Materion has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MTRN Health

 How is Materion's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Materion's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Materion is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Materion's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Materion's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 8.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Materion Company Filings, last reported 1 month ago.

NYSE:MTRN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 566.88 52.19 41.86
2018-12-31 553.91 18.11 70.65
2018-09-28 536.74 19.00 53.61
2018-06-29 515.74 19.15 42.90
2018-03-30 504.33 3.43 20.21
2017-12-31 494.98 19.68 41.84
2017-09-29 511.99 3.78 22.49
2017-06-30 502.96 26.39 18.50
2017-03-31 497.10 32.36 16.34
2016-12-31 494.09 4.34 31.46
2016-09-30 499.95 16.58 15.81
2016-07-01 492.73 28.71 20.99
2016-04-01 488.15 37.16 18.87
2015-12-31 482.96 13.27 24.24
2015-10-02 475.14 46.27 24.83
2015-07-03 471.46 44.64 20.63
2015-04-03 464.92 51.45 21.94
2014-12-31 459.02 24.27 13.15
2014-09-26 486.38 50.39 19.61
2014-06-27 487.86 80.31 18.06
2014-03-28 478.87 92.94 19.31
2013-12-31 463.32 64.83 22.77
2013-09-27 432.39 88.44 20.16
2013-06-28 426.02 96.14 15.73
2013-03-29 421.11 113.40 20.24
2012-12-31 415.00 94.31 16.06
2012-09-28 430.13 122.48 10.89
2012-06-29 420.53 115.43 15.43
  • Materion's level of debt (9.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (19.3% vs 9.2% today).
  • Debt is well covered by operating cash flow (137.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
X
Financial health checks
We assess Materion's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Materion has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MTRN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.69%
Current annual income from Materion dividends. Estimated to be 0.68% next year.
If you bought $2,000 of Materion shares you are expected to receive $14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Materion's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Materion's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MTRN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MTRN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.44 2.00
2019-12-31 0.43 2.00
NYSE:MTRN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.440 0.668
2019-01-30 0.420 0.744
2018-08-02 0.420 0.777
2018-05-02 0.420 0.751
2018-02-08 0.400 0.774
2017-10-26 0.400 0.804
2017-08-02 0.400 1.002
2017-05-03 0.400 1.100
2017-02-01 0.380 1.087
2016-08-03 0.380 1.143
2016-05-04 0.380 1.516
2016-02-03 0.360 1.377
2015-08-04 0.360 1.243
2015-05-06 0.360 0.999
2015-02-04 0.340 0.891
2014-07-22 0.340 1.013
2014-05-07 0.340 0.954
2014-02-05 0.320 1.010
2013-10-24 0.320 1.119
2013-07-24 0.320 1.049
2013-05-01 0.320 1.107
2013-02-06 0.300 1.083
2012-10-25 0.300 1.286
2012-07-25 0.300 1.363
2012-05-02 0.300 1.361

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Materion is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Materion is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Materion's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Materion's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Materion's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Materion's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Materion afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Materion has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MTRN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jugal Vijayvargiya
COMPENSATION $3,130,165
AGE 50
TENURE AS CEO 2.2 years
CEO Bio

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 Automotive PLC, a leading global technology solutions provider to the automotive and transportation sectors. He served as Senior Vice President and President of Delphi Electronics & Safety at Delphi Automotive PLC since February 2012 until February 21, 2017. He served as an Executive Officer of Delphi. He led Electronics & Safety operations in 14 countries, designing and manufacturing sophisticated automotive electronics and systems. Mr. Vijayvargiya served as the Vice President of The Infotainment & Driver Interface Product Business Unit (PBU) for Delphi E&S since August 2009. He served as the General Director of the Controls & Security PBU since 2006. Earlier, he served as a Global Business Line Executive (BLE) for Body Security & Mechatronics of Delphi Electrical/Electronic Architecture. He began his Delphi career with E&S in 1986. Following several engineering assignments, he transferred to Troy, Mich. in 1996 and progressed through various sales positions. He served as Director of Program Management and became Product Line Manager of Audio Systems in 2002. He moved to Germany in 2003 to direct the integration of one of Delphi's corporate acquisitions. He has been a Director of Materion Corporation since March 03, 2017. Mr. Vijayvargiya received a bachelor's degree in electrical engineering and a master's degree from the Ohio State University.

CEO Compensation
  • Insufficient data for Jugal to compare compensation growth.
  • Jugal's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Materion management team in years:

2.3
Average Tenure
55
Average Age
  • The tenure for the Materion management team is about average.
Management Team

Jugal Vijayvargiya

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
50
TENURE
2.2 yrs

Joseph Kelley

TITLE
CFO & VP of Finance
COMPENSATION
$1M
AGE
45
TENURE
4.3 yrs

Greg Chemnitz

TITLE
VP, General Counsel & Secretary
COMPENSATION
$1M
AGE
60
TENURE
11.7 yrs

Marc Rands

TITLE
Vice President of Global Operations
TENURE
1.3 yrs

Ian Tribick

TITLE
Chief Technology & Marketing Officer
TENURE
1.8 yrs

Steve Shamrock

TITLE
Vice President of Investor Relations & Corporate Controller
TENURE
2.3 yrs

Stephen Freeman

TITLE
President of International Business Development
TENURE
13.2 yrs

Deborah Armstrong

TITLE
Chief Human Resources Officer

Mike Anderson

TITLE
President of Beryllium Products
AGE
66

Al Lubrano

TITLE
President & CEO of Technical Materials Inc
Board of Directors Tenure

Average tenure and age of the Materion board of directors in years:

7.8
Average Tenure
62
Average Age
  • The tenure for the Materion board of directors is about average.
Board of Directors

Vinod Khilnani

TITLE
Non-Executive Chairman
COMPENSATION
$180K
AGE
66
TENURE
1.4 yrs

Jugal Vijayvargiya

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
50
TENURE
2.2 yrs

Geoff Wild

TITLE
Independent Director
COMPENSATION
$160K
AGE
62
TENURE
7.8 yrs

N. Reddy

TITLE
Independent Director
COMPENSATION
$150K
AGE
64
TENURE
19.3 yrs

William Lawrence

TITLE
Independent Director
COMPENSATION
$150K
AGE
73
TENURE
15.8 yrs

Craig Shular

TITLE
Independent Director
COMPENSATION
$150K
AGE
65
TENURE
11 yrs

Darlene J. Solomon

TITLE
Independent Director
COMPENSATION
$155K
AGE
59
TENURE
7.8 yrs

Bob Toth

TITLE
Independent Director
COMPENSATION
$150K
AGE
57
TENURE
6.3 yrs

Bob Phillippy

TITLE
Independent Director
AGE
58
Who owns this company?
Recent Insider Trading
  • Materion insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. May 19 Sell Vinod Khilnani Individual 14. May 19 14. May 19 -1,855 $65.84 $-122,125
03. May 19 Sell GAMCO Investors, Inc. Company 11. Mar 19 02. May 19 -97,000 $68.87 $-6,102,041
25. Feb 19 Sell Gregory Chemnitz Individual 21. Feb 19 21. Feb 19 -3,000 $57.78 $-172,696
18. Jan 19 Sell Craig Shular Individual 16. Jan 19 16. Jan 19 -5,939 $46.57 $-276,592
01. Nov 18 Sell Gregory Chemnitz Individual 01. Nov 18 01. Nov 18 -4,000 $57.50 $-230,000
08. Aug 18 Sell Joseph Kelley Individual 08. Aug 18 08. Aug 18 -5,603 $63.59 $-356,295
08. Aug 18 Buy Joseph Kelley Individual 08. Aug 18 08. Aug 18 2,923 $63.74 $186,312
06. Aug 18 Sell Gregory Chemnitz Individual 03. Aug 18 03. Aug 18 -2,000 $63.31 $-126,617
X
Management checks
We assess Materion's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Materion has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MTRN News

Simply Wall St News

Calculating The Intrinsic Value Of Materion Corporation (NYSE:MTRN)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $52.75 $59.60 $71.30 $94.70 $90.10 $87.70 $86.78 $86.85 $87.61 $88.87 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x1 Analyst x1 Analyst x1 Est @ -2.67% Est @ -1.05% Est @ 0.08% Est @ 0.88% Est @ 1.43% Present Value ($, Millions) Discounted @ 8.65% $48.55 $50.49 $55.59 $67.95 $59.51 $53.31 $48.55 $44.72 $41.52 $38.76 Present Value of 10-year Cash Flow (PVCF)= $508.94m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … NYSE:MTRN Intrinsic value, May 23rd 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Are Insiders Selling Materion Corporation (NYSE:MTRN) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Materion Corporation (NYSE:MTRN). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when the CFO & VP of Finance, Joseph Kelley, sold US$356k worth of shares at a price of US$63.59 per share.

Simply Wall St -

What You Must Know About Materion Corporation's (NYSE:MTRN) Beta Value

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

A Closer Look At Materion Corporation's (NYSE:MTRN) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.038 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Materion Corporation's (NYSE:MTRN) High P/E Ratio Isn't Necessarily A Bad Thing

To keep it practical, we'll show how Materion Corporation's (NYSE:MTRN) P/E ratio could help you assess the value on offer. … Materion has a price to earnings ratio of 55.99, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Materion Corporation (NYSE:MTRN) Struggling With Its 4.0% Return On Capital Employed?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Who Has Been Selling Materion Corporation (NYSE:MTRN) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Materion Corporation (NYSE:MTRN). … However, most countries require that the company discloses such transactions to the market. … The Last 12 Months Of Insider Transactions At Materion.

Simply Wall St -

Calculating The Intrinsic Value Of Materion Corporation (NYSE:MTRN)

How far off is Materion Corporation (NYSE:MTRN) from its intrinsic value? … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Can Materion Corporation (NYSE:MTRN) Improve Its Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.062 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Does Materion Corporation (NYSE:MTRN) Affect Your Portfolio Volatility?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

MTRN Company Info

Description

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. The company operates in four segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Performance Alloys and Composites segment provides copper and nickel products in plate, rod, bar, tube, wire product forms, as well as other customized shapes; thick precision strip products; beryllium hydroxide; and beryllium products, such as beryllium and aluminum metal matrix composites, beryllia ceramics, and bulk metallic glass materials. This segment also produces strip metal products with clad inlay and overlay metals consisting of precious and base metals electroplated systems, electron beam welded systems, contour profiled systems, and solder-coated metal systems. The Advanced Materials segment provides advanced chemicals, microelectronics packaging, precious and non-precious metals, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-fine wires for use in the consumer electronics, industrial components, and telecommunications infrastructure end markets. The Precision Coatings segment produces sputter-coated precision thin film coatings and optical filter materials. Materion Corporation distributes its products through company-owned facilities, and independent distributors and agents. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in 2011. Materion Corporation was founded in 1931 and is headquartered in Mayfield Heights, Ohio.

Details
Name: Materion Corporation
MTRN
Exchange: NYSE
Founded: 1931
$1,299,646,318
20,354,680
Website: http://www.materion.com
Address: Materion Corporation
6070 Parkland Boulevard,
Mayfield Heights,
Ohio, 44124,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MTRN Common Stock New York Stock Exchange US USD 02. Jan 1969
DB BEM Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
2,700
Materion employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:34
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/29
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.