Materion Corporation
Find Ratings ReportsMATERION CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. MATERION CORP has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.63% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 421.04 | 434.58 |
EBITDA ($mil) | 45.06 | 57.0 |
EBIT ($mil) | 29.94 | 42.78 |
Net Income ($mil) | 19.47 | 28.76 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 13.29 | 13.1 |
Total Assets ($mil) | 1762.73 | 1691.98 |
Total Debt ($mil) | 501.29 | 514.8 |
Equity ($mil) | 885.05 | 799.99 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 21.7 | 25.21 |
EBITDA Margin | 10.7 | 13.11 |
Operating Margin | 7.11 | 9.84 |
Sales Turnover | 0.94 | 1.04 |
Return on Assets | 5.42 | 5.08 |
Return on Equity | 10.81 | 10.75 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.78 | 2.89 |
Debt/Capital | 0.36 | 0.39 |
Interest Expense | 8.5 | 7.58 |
Interest Coverage | 3.52 | 5.64 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 20.65 | 20.54 |
Div / share | 0.13 | 0.13 |
EPS | 0.93 | 1.38 |
Book value / share | 42.87 | 38.94 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 92293.0 | 85321.0 |
BUY. This stock's P/E ratio indicates a significant premium compared to an average of 15.23 for the Primary Metal Manufacturing subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.03 indicates a significant discount versus the S&P 500 average of 4.68 and a premium versus the subsector average of 1.56. The price-to-sales ratio is well below the S&P 500 average, but well above the subsector average. Upon assessment of these and other key valuation criteria, MATERION CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MTRN 28.37 | Peers 15.23 | MTRN 18.57 | Peers 9.34 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MTRN is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MTRN is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MTRN 18.56 | Peers 11.93 | MTRN 0.76 | Peers 0.43 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MTRN is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MTRN trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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MTRN 3.03 | Peers 1.56 | MTRN 10.62 | Peers 0.85 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MTRN is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MTRN is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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MTRN 1.61 | Peers 0.92 | MTRN -5.24 | Peers -2.96 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MTRN is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MTRN significantly trails its peers on the basis of sales growth. |
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