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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 215 days ago. More info.


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MTRN Share Price and Events
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 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

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 3%
Equity Risk Premium S&P Global 7.1%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.957 (1 + (1- 21%) (1.6%))
0.969
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.969 * 7.05%)
9.78%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MTRN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 34.08 51.55 67.90 77.00 76.03
Source Analyst x4 Analyst x2 Analyst x1 Analyst x1 Est @ -1.26%
Present Value
Discounted (@ 9.78%)
31.04 42.77 51.32 53.01 47.68
Present value of next 5 years cash flows $225.82
NYSE:MTRN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $76.03 × (1 + 2.95%) ÷ (9.78% – 2.95%)
$1,145.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,145.72 ÷ (1 + 9.78%)5
$718.50
NYSE:MTRN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $225.82 + $718.50
$944.32
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $944.32 / 20.24
$46.67
NYSE:MTRN Discount to Share Price
Calculation Result
Value per share (USD) From above. $46.67
Current discount Discount to share price of $58.85
= -1 x ($58.85 - $46.67) / $46.67
-26.1%

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 (2018-06-29) in USD $1.13
NYSE:MTRN Share Price ** NYSE (2018-09-18) in USD $58.85
United States of America Metals and Mining Industry PE Ratio Median Figure of 83 Publicly-Listed Metals and Mining Companies 11.37x
United States of America Market PE Ratio Median Figure of 3,820 Publicly-Listed Companies 19.87x

* 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)

= 58.85 ÷ 1.13

51.94x

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 51.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
23.7%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 49 Publicly-Listed Metals and Mining Companies 1.34x
United States of America Market PEG Ratio Median Figure of 2,650 Publicly-Listed Companies 1.41x

*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

= 51.94x ÷ 23.7%

2.19x

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 (2018-06-29) in USD $25.49
NYSE:MTRN Share Price * NYSE (2018-09-18) in USD $58.85
United States of America Metals and Mining Industry PB Ratio Median Figure of 261 Publicly-Listed Metals and Mining Companies 1.31x
United States of America Market PB Ratio Median Figure of 6,378 Publicly-Listed Companies 1.94x
NYSE:MTRN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 58.85 ÷ 25.49

2.31x

* 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
23.7%
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 3%.
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 23.7%
NYSE:MTRN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 4.4%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 10.8%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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 (2 months 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
2022-12-31 1,495 1
2021-12-31 1,404 1
2020-12-31 1,299 58 2
2019-12-31 1,264 77 51 4
2018-12-31 1,227 87 44 4
NYSE:MTRN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2015-12-31 1,025 91 32
2015-10-02 1,100 84 38
2015-07-03 1,147 83 43

*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 4.4% 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 (2 months 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 2 months 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
2022-12-31
2021-12-31
2020-12-31 2.80 2.80 2.80 1.00
2019-12-31 2.45 2.50 2.41 4.00
2018-12-31 2.14 2.18 2.10 4.00
NYSE:MTRN Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 1.60
2015-10-02 1.87
2015-07-03 2.12

*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?

  • Materion's last earnings update was 215 days ago.
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 and the most recent earnings are below average.
  • Materion's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Materion's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
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 2 months 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
2018-06-29 1,215.49 22.80 146.25 14.81
2018-03-30 1,202.25 18.97 145.70 14.49
2017-12-31 1,139.45 11.45 140.76 13.98
2017-09-29 1,065.11 26.46 140.32 13.05
2017-06-30 1,020.46 25.19 138.21 12.85
2017-03-31 974.39 23.42 132.72 12.48
2016-12-31 969.24 25.74 129.68 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
2012-03-30 1,505.56 34.28 130.60 11.76
2011-12-31 1,526.73 39.98 129.59 11.08
2011-09-30 1,548.29 51.85 130.72 9.83

*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 has improved its use of capital 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 21.3x 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 2 months ago.

NYSE:MTRN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-29 515.74 19.15 42.90
2018-03-30 504.33 3.43 20.21
2017-12-31 494.98 3.60 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
2012-03-30 412.10 118.38 15.15
2011-12-31 405.98 81.41 12.26
2011-09-30 428.34 112.30 8.97
  • Materion's level of debt (3.7%) 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 (22.5% vs 3.7% today).
  • Debt is well covered by operating cash flow (505.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24.7x 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
0.71%
Current annual income from Materion dividends. Estimated to be 0.73% 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 (1.36%).
  • Materion's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
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 49 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2649 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 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

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
2022-12-31
2021-12-31
2020-12-31 0.46 1.00
2019-12-31 0.43 2.00
2018-12-31 0.42 2.00
NYSE:MTRN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-02 0.420 0.674
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, image provided by Google.
Jugal Vijayvargiya
COMPENSATION $3,130,165
AGE 50
TENURE AS CEO 1.5 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 compensation is higher than average for a company of this size and profit level.
Management Team Tenure

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

1.7
Average Tenure
55
Average Age
  • The average tenure for the Materion management team is less than 2 years, this suggests a new team.
Management Team

Jugal Vijayvargiya

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

Joseph Kelley

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

Greg Chemnitz

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

Marc Rands

TITLE
Vice President of Global Operations
TENURE
0.7 yrs

Ian Tribick

TITLE
Chief Technology & Marketing Officer
TENURE
1.1 yrs

Steve Shamrock

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

Stephen Freeman

TITLE
President of International Business Development
TENURE
12.5 yrs

Mike Anderson

TITLE
President of Beryllium Products
AGE
66

Al Lubrano

TITLE
President & CEO of Technical Materials Inc

Alex Boulton

TITLE
President of Brush Resources Inc
Board of Directors Tenure

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

7.2
Average Tenure
63
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
0.8 yrs

Jugal Vijayvargiya

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

Geoff Wild

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

N. Mohan Reddy

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

William Lawrence

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

Craig Shular

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

Darlene J. Solomon

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

Bob Toth

TITLE
Independent Director
COMPENSATION
$150K
AGE
57
TENURE
5.6 yrs
Recent Insider Trading
  • Materion insiders have sold more shares than they have bought in the past 3 months.
Who owns this company?
X
Management checks
We assess Materion's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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

External News
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Simply Wall St News

Materion Corporation (NYSE:MTRN): Risks You Need To Consider Before Buying

The first type is company-specific risk, which can be diversified away by investing in other companies to reduce exposure to one particular stock. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … The most widely used metric to quantify a stock's market risk is beta, and the market as a whole represents a beta of one.

Simply Wall St -

Should You Be Worried When Materion Corporation’s (NYSE:MTRN) Insiders Sell?

some insider selling over the past three months, with insiders divesting from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

Should You Sell Materion Corporation (NYSE:MTRN) At This PE Ratio?

and want to begin learning the link between Materion Corporation (NYSE:MTRN)’s fundamentals and stock market performance. … Materion Corporation (NYSE:MTRN) is trading with a trailing P/E of 59x, which is higher than the industry average of 12.5x. … While this makes MTRN appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Materion Corporation's (NYSE:MTRN) Earnings Dropped -19.12%, Did Its Industry Show Weakness Too?

After looking at Materion Corporation's (NYSE:MTRN) latest earnings announcement (30 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Although revenue growth in the past couple of years, has been negative, earnings growth has been deteriorating by even more, implying that Materion has been growing its expenses. … I recommend you continue to research Materion to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for MTRN’s future growth?

Simply Wall St -

Is Materion Corporation (NYSE:MTRN) Worth $51.9 Based On Its Intrinsic Value?

In this article I am going to calculate the intrinsic value of Materion Corporation (NYSE:MTRN) by projecting its future cash flows and then discounting them to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $28.88 $43.77 $69.50 $72.40 $74.80 Source Analyst x4 Analyst x3 Analyst x1 Analyst x1 Analyst x1 Present Value Discounted @ 10.1% $26.23 $36.11 $52.08 $49.28 $46.24 Present Value of 5-year Cash Flow (PVCF)= $210 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $75 × (1 + 2.5%) ÷ (10.1% – 2.5%) = $1,005 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,005 / ( 1 + 10.1%)5 = $621 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $831.

Simply Wall St -

MTRN Company Info

Map
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 through Performance Alloys and Composites, Advanced Materials, and Precision Coatings segments. The Performance Alloys and Composites segment provides copper and nickel manufactured in plate, rod, bar, tube, wire product forms, and 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 metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-fine wire. Its products are used 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 a combination of 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
$1,197,962,675
20,235,856
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: 2018/09/18 21:03
End of day share price update: 2018/09/18 00:00
Last estimates confirmation: 2018/08/20
Last earnings update: 2018/06/29
Last annual earnings update: 2017/12/31


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.