One-glance verdict
Overvalued
$63.38 our estimate vs market $251.67
Wall Street consensus: $303.75 (379.3% higher than our fair-value estimate)
297% above our estimate, beyond the bull case
Fundamentals snapshot
Materion Corporation
MTRN · NYQ · Basic Materials · Other Industrial Metals & Mining
Current price
$251.67
52-week range
$109.61 - $304.58
Market cap
$5.24B
Balance sheet
Stretched
3.69x Stretched
Net debt $490.76M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 17.4% last year.
- Reward Returns 9.5% on equity, ahead of 50% of its peers.
- Risk Net debt grew 5.5% over 3 years.
- Risk Insider ownership is only 1.7% (peer median: 3.0%).
What this company does
Materion Corporation
Materion Corporation creates advanced, custom-engineered materials like special metal alloys and precision coatings. These materials are essential, high-tech building blocks for products in major industries such as aerospace, defense, and consumer electronics. Because their components are so specialized and necessary, Materion is a key part of the supply chain (the network of companies needed to make and sell a product) for many complex technologies.
How the company got here
Materion's story begins in 1921 as Brush Laboratories, a company focused on the unique metal beryllium. Over the decades, it grew by finding new uses for this strong, lightweight material, including in early spacecraft for NASA. After changing its name from Brush Wellman to Materion in 2011, the company signaled a broader focus on a wide range of advanced materials, not just beryllium. Through acquisitions, it has expanded into new technologies and now serves industries like electronics, aerospace, and defense worldwide.
What it actually does
Materion is a company that creates highly specialized materials that are essential ingredients in other companies' complex products. You won't find their brand on a store shelf, but their materials are critical components inside things like smartphones, cars, and medical devices. They develop and produce things like high-performance metal alloys (a mix of metals with special properties), advanced chemicals, and precision optical coatings (very thin layers of material that control light). These materials are chosen when standard ones aren't strong enough, can't handle high temperatures, or don't have the right electrical or optical properties for demanding jobs.
Performance Materials
This is the company's largest and original business, built around specialty metals. It provides advanced metal alloys, including those containing beryllium, in various forms like strips, rods, and plates. Customers in the aerospace, automotive, and industrial sectors buy these materials to make parts that need to be exceptionally strong, reliable, and perform well under extreme conditions, such as aircraft landing gear or electrical connectors in cars. This segment also produces technical ceramics and special metal composites for high-tech applications.
Electronic Materials
This segment is a key supplier to the semiconductor industry, which makes computer chips. It produces ultra-pure metals and chemicals that are used to create the microscopic circuits on a silicon wafer (the foundation of a computer chip). Companies that manufacture semiconductors, batteries, and other electronic components pay Materion for these crucial, high-purity materials. This part of the business also makes specialized packaging that protects sensitive microelectronics.
Precision Optics
This division creates highly advanced, very thin coatings that control how light behaves. These coatings are applied to glass or other surfaces to create optical filters and assemblies for a wide range of products. Customers in the defense, life sciences, and automotive industries use these components for things like sensors in self-driving cars, guidance systems, and scientific instruments. For example, they make filters that allow specific colors of light to pass through while blocking others, which is critical for many types of sensors and cameras.
What management is betting on now
Materion's leadership is focused on supplying critical materials for major technology trends, or 'megatrends'. They are heavily invested in the growth of the semiconductor market, especially for advanced chips used in artificial intelligence (AI) and cloud computing. The company is also prioritizing growth in the aerospace and defense sectors, where high-performance materials are essential for things like satellites and rocket components. Finally, they see big opportunities in the global shift toward clean energy and electrification, providing materials for next-generation batteries and nuclear power.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$58.33M
FY2025 Q1
$3.18M
FY2026 Q2
$-19.60M
Revenue
$613.91M
Net income
$38.76M
Diluted EPS
1.84
Operating cash flow
$74.81M
Free cash flow
—
Fetching…
Sources
Revenue
$549.82M
Net income
$19.37M
Diluted EPS
0.92
Operating cash flow
$-4.31M
Free cash flow
$-19.60M
Fetching…
Sources
Revenue
$489.75M
Net income
$6.57M
Diluted EPS
0.30
Operating cash flow
$19.52M
Free cash flow
—
Fetching…
Sources
Revenue
$444.81M
Net income
$25.41M
Diluted EPS
1.22
Operating cash flow
$18.28M
Free cash flow
—
Fetching…
Sources
Revenue
$431.66M
Net income
$25.14M
Diluted EPS
1.21
Operating cash flow
$49.94M
Free cash flow
—
Fetching…
Sources
Revenue
$420.33M
Net income
$17.70M
Diluted EPS
0.85
Operating cash flow
$15.50M
Free cash flow
$3.18M
Fetching…
Sources
Revenue
$436.87M
Net income
$-48.85M
Diluted EPS
-2.34
Operating cash flow
$76.25M
Free cash flow
$58.33M
Fetching…
Sources
Is it cheap or expensive?
Fair value $63.38 vs current price $251.67
Wall Street consensus is the average analyst price target: $303.75 (379.3% higher than our fair-value estimate).
Our most-likely fair value is $63.38 a share — about 74.8% below today's price of $251.67, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $490.8M. Interest coverage 3.7x.
Net debt
$490.76M
Interest coverage
3.69x
Materion Corporation's profit covers its interest bill about 3.7 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
MTRN
BASELINE
Materion Corporation
Total debt $511.60M Interest coverage 3.69x This is the baseline the peer rows are being compared against.
Total debt $2.12B Interest coverage 6.41x +74% vs MTRN Carries about 1.7x more debt cushion than MTRN.
Total debt $981.62M Interest coverage -4.61x -100% vs MTRN This peer has almost no interest-payment cushion compared with MTRN.
Total debt $1.92B Interest coverage 4.47x +21% vs MTRN Carries about 1.2x more debt cushion than MTRN.
Total debt $1.07B Interest coverage 3.81x +3% vs MTRN Has roughly the same debt cushion as MTRN.
Total debt $28.50M Interest coverage 43.42x +1,077% vs MTRN Carries about 11.8x more debt cushion than MTRN.
What you should know
The case for and against MTRN
3 Rewards
2 Risks
Rewards
-
Revenue grew 17.4% last year.
-
Returns 9.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 5.5% over 3 years.
-
Insider ownership is only 1.7% (peer median: 3.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
58.80x
Forward P/E
29.84x
P/B
5.27x
P/S
2.50x
EV/EBITDA
27.91x
PEG ratio
1.28x
Profitability
How much profit each dollar creates
Gross margin
16.0%
Operating margin
8.6%
Net margin
4.3%
ROE
9.5%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
2.94x
Quick ratio
0.95x
Total debt
$511.60M
Total cash
$20.84M
Growth
How the business has been compounding
Revenue TTM
$2.10B
Revenue 5Y CAGR
4.3%
EPS TTM
4.28
EPS 5Y CAGR
-4.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$108.31M
Free CF TTM
$19.17M
FCF margin
0.9%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
13.2%
Last ex-div date
2026-08-20