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Materion Corp

Materion Corp

MTRN
$257.51USD↑+2.32%+5.84 today

MARKET CAP

5.4B

P/E (TTM)

41.2x

FWD P/E

31.2x

DAY RANGE

$254 – $260

52W RANGE

$110
$305

AI Summary

Stalk
Buy NowMedium

MTRN is exhibiting a Bullish Pivot Point recovery within a Stage 2 advance, clearing short-EMAs and the 50 SMA with no downside follow-through, indicating structural repair and resumed momentum. Medium-term bias remains bullish under mean-reversion eligibility, and the recent hold above rising EMAs offers a favorable entry for continuation toward prior highs. A failure back below the 50 SMA on increased volume would negate this setup.

  • ↑10% YoY growth in value-added sales drives revenue momentum
  • ↑Order backlog surged 20% YoY, setting an all-time high
  • ↓Forward P/E of 57.9x versus materials average 20.1x suggests overvaluation
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The case for & against

Bull & Bear analysis

Bullish

Materion Corporation (NYSE: MTRN) is a leading provider of advanced materials catering to high-growth sectors such as aerospace, defense, energy, and semiconductor industries. Positioned strategically within these industries, Materion specializes in performance materials, electronic materials, and precision optics, allowing it to benefit from rising demands in artificial intelligence (AI) and advanced technology integrations. Despite recent operational challenges, Materion's strong order backlog indicates a promising growth outlook.

Bull says

  • ↑10% YoY growth in value-added sales drives revenue momentum
  • ↑Order backlog surged 20% YoY, setting an all-time high
  • ↑Electronic materials segment delivered 28.3% EBITDA margin
  • ↑$75M defense funding boosts capacity expansion post-2026
  • ↑$300M in RFQs and AI/semiconductor trends underpin growth
  • ↑Strong momentum and liquidity factors support share upside

Bear says

  • ↓Forward P/E of 57.9x versus materials average 20.1x suggests overvaluation
  • ↓Stock dropped 18% last week amid heavy selling pressure
  • ↓China operations revenue fell 20% on tariff headwinds
  • ↓Persistent inventory and quality issues may hamper execution
  • ↓$75M CapEx plan carries execution and ROI risks
  • ↓Weak growth and dividend factor scores highlight downside

Investment themes with MTRN

Infrastructure Development↓ -1.13%

DE · HWM · TT

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 02-20-2025neutral

Transcript signals

Bull points

  • value added sales were $186 million, up 5% compared to prior year, and up 10% sequentially. This record quarter and year-over-year increase was driven by strength across the aerospace and defense end markets, including meaningful contributions from space applications.
  • we expect aerospace and defense to remain strong in 2024, and we'll remain on track with the expansion of our precision clad strip facility, which is expected to ramp in the latter part of 2024.
  • We delivered our third consecutive year of record value added sales, adjusted EBITDA, and adjusted earnings per share.

Bear points

  • value added sales, which exclude the impact of pass-through precious metal costs were $289.7 million down slightly from prior year, but up 7% sequentially.
  • Despite strength in aerospace and defense, semiconductor and industrial remain challenged as Jubal outlined.
  • Value added sales were $77.7 million, down 21% compared to the prior year, as a result of the significant weakness in the semiconductor market.
Read full transcript analysis ›