# Materion (MTRN.US)

Canonical: https://gigainvestors.com/s/MTRN

Analysis as of: 2026-10-16T07:30:28.615Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $252.16 per share; close as of 2026-10-15.

Estimated value: low $56.89 per share, central $70.01 per share, high $81.64 per share. Buy at or below the central value $70.01 per share. Valuation as of 2026-10-16T07:30:28.615Z; scenarios are not confidence intervals.

Expected annual return: 4.9% at the stated quote. About 4.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.01×

- FY2021: 0.05×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.03×

- FY2025: 0.06×

- LTM to Jun 2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.2%

- ROIC, second-lowest year: 2.8%

- Typical minus recent gross margin: 2.5 pp

- Typical gross margin (annual median): 19.2%

- Recent gross margin (lower of latest and 3-year median): 16.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 5.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.6%

- FY2017: 6.5%

- FY2018: 13.9%

- FY2019: 12.0%

- FY2020: 1.4%

- FY2021: 7.9%

- FY2022: 10.3%

- FY2023: 11.6%

- FY2024: 2.8%

- FY2025: 8.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $287M

- Net income, five-year total: $335M

- Return on incremental invested capital: 18.9%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.6 pp

- Working capital / revenue, final three-year average: 30.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.39×

- FY2024: 0.01×

- FY2025: 1.21×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.6% vs 8.5%

- Per-share earnings: 1.27 to 3.58 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: $1.8B

- Cumulative retained earnings: $394M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.8%

- Per-share value change: $2.30

- Per-share value, starting three-year median: $1.27

- Per-share value, ending three-year median: $3.58

- Buybacks concentrated in cheaper years (correlation): -0.26

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $564M

- Cumulative net income, 10 years: $462M

- ROIC, first three-year median: 7.6%

- ROIC, last three-year median: 8.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.27

- FY2017: $0.56

- FY2018: $1.01

- FY2019: $2.59

- FY2020: $0.75

- FY2021: $3.50

- FY2022: $4.14

- FY2023: $4.58

- FY2024: $0.28

- FY2025: $3.58

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 10.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.38×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.41×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -7.1%

- FY2018: -6.9%

- FY2019: -5.1%

- FY2020: -8.1%

- FY2021: -1.1%

- FY2022: -1.8%

- FY2023: -2.8%

- FY2024: -4.8%

- FY2025: -1.6%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 19.2% a year for ten years · sales +17.4%

Story as of 2026-10-16T09:59:13.572Z; price observation 2026-10-15.

Price needs cash profits to grow 19.2% a year for ten years

- 2025-07-18: Materion to See Upside From Easing China Tariff Risk, Improving Semiconductor Demand, KeyBanc Says ([finance.yahoo.com](https://finance.yahoo.com/news/materion-see-upside-easing-china-145009950.html))

- 2025-08-01: Surging Earnings Estimates Signal Upside for Materion (MTRN) Stock ([finance.yahoo.com](https://finance.yahoo.com/news/surging-earnings-estimates-signal-upside-162002781.html))

- 2025-10-30: Materion (MTRN): $84 Million One-Off Loss Drives Margin Miss and Premium Valuation Debate ([finance.yahoo.com](https://finance.yahoo.com/news/materion-mtrn-84-million-one-043421696.html))

- 2026-02-16: Why Materion (MTRN) Is Up 5.5% After Q4 Profit Rebound and 2026 Guidance Update ([finance.yahoo.com](https://finance.yahoo.com/news/why-materion-mtrn-5-5-031339078.html))

- 2026-04-29: Materion Corporation Reports Strong First Quarter 2026 Financial Results and Improves Full-Year Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/materion-corporation-reports-strong-first-104700868.html))

- 2026-08-05: Materion Corporation Reports Record Second-Quarter 2026 Financial Results and Raises Full-Year Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/materion-corporation-reports-record-second-104700741.html))

### Sales · FY2025–2026

sales +17.4%; source https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm; observed 2026-02-12.

- FY2017: $1.1B 

- FY2018: $1.2B 

- FY2019: $1.2B 

- FY2020: $1.2B 

- FY2021: $1.5B 

- FY2022: $1.8B 

- FY2023: $1.7B 

- FY2024: $1.7B 

- FY2025: $1.8B 

- FY2026: $2.1B 

### Gross margin · FY2025

gross margin 16.7%; source https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm; observed 2026-02-12.

- FY2016: 19.0% 

- FY2017: 18.7% 

- FY2018: 20.8% 

- FY2019: 22.2% 

- FY2020: 16.4% 

- FY2021: 18.8% 

- FY2022: 19.6% 

- FY2023: 21.0% 

- FY2024: 19.3% 

- FY2025: 16.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in other industrial metals & mining; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm (filed 2026-02-12); FY2025: revenue 1786654000; grossProfit 297717000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MTRN.US: Materion Corporation, together with its subsidiaries, produces advanced engineered materials in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. It provides beryllium and non-beryllium containing alloy systems and custom engineered metal solutions in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, wire, and engineered strip metal products; ToughMet alloys; and SupremEX aluminum silicon carbide metal matrix composite formulation products. The company also operates the bertrandite ore mine and refinery that provides feedstock hydroxide for its beryllium businesses and external sale. In addition, it produces advanced chemicals, microelectronics packaging, precious and non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, and high temperature braze materials. Further, the company designs and manufactures precision thin film coatings, optical filters, and assemblies. In addition, it offers inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics, and engineered clad and plated metal systems. The company sells its products to semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and life sciences through its facilities and service centers, independent distributors and agents, outside distributors, direct sales offices, and independent sales representatives. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in March 2011. Materion Corporation was founded in 1921 and is based in Mayfield Heights, Ohio.

### Why customers stay

Margins ranged from 16.7% to 21% during 2023–25; it earns 8.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 19.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 16.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.07599740008894433],[2017,0.06534475311277305],[2018,0.1393805609349819],[2019,0.11989908837020338],[2020,0.013677647078411296],[2021,0.07937502988325118],[2022,0.10272622124387502],[2023,0.11592403446606303],[2024,0.027766475375135238],[2025,0.08505991250147703]]; median 0.08221747119236411. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 21.5% of cash earnings; earns 18.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 37038000; cash acquisitions 1750000; owner earnings 34353000. Growth capex plus acquisitions / owner earnings = 0.050941693592990424.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 29076000; cash acquisitions 16504000; owner earnings 25126000. Growth capex plus acquisitions / owner earnings = 0.6568494786277163.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 34260000; cash acquisitions 0; owner earnings 22110000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 26528000; cash acquisitions 0; owner earnings 67982000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 58773000; upkeep 44137000; cash acquisitions 392240000; owner earnings 72474000. Growth capex plus acquisitions / owner earnings = 6.223100698181417.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 24172000; upkeep 53436000; cash acquisitions 2971000; owner earnings 85990000. Growth capex plus acquisitions / owner earnings = 0.31565298290498894.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 119876000; cash acquisitions 0; owner earnings 37470000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 6278830.5881572515; upkeep 74529169.41184275; cash acquisitions 0; owner earnings 34830.58815725148. Growth capex plus acquisitions / owner earnings = 180.26771640518635.

- Source: https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 53279000; cash acquisitions 19500000; owner earnings 90618000. Growth capex plus acquisitions / owner earnings = 0.21518903529100178.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Incremental return on capital 0.18900319000485874, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,7496000],[2017,7913000],[2018,8389000],[2019,8856000],[2020,9257000],[2021,9697000],[2022,10160000],[2023,10621000],[2024,11087000],[2025,11510000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 10485000 USD.

### Are managers owners

Insiders own 1.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MTRN.US SharesStats.PercentInsiders = 1.722 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.2% yearly over ten years; actual growth was 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.2655180600572198. Price 252.16; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.876629742182139 → FY2025 4.333301453710788. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $30.30 per share

- 2016-11: $38.35 per share

- 2016-12: $39.60 per share

- 2017-01: $39.30 per share

- 2017-02: $34.85 per share

- 2017-03: $33.55 per share

- 2017-04: $38.05 per share

- 2017-05: $34.20 per share

- 2017-06: $37.40 per share

- 2017-07: $38.45 per share

- 2017-08: $38.20 per share

- 2017-09: $43.15 per share

- 2017-10: $51.35 per share

- 2017-11: $48.90 per share

- 2017-12: $48.60 per share

- 2018-01: $49.70 per share

- 2018-02: $50.40 per share

- 2018-03: $51.05 per share

- 2018-04: $50.75 per share

- 2018-05: $54.55 per share

- 2018-06: $54.15 per share

- 2018-07: $62.70 per share

- 2018-08: $63.80 per share

- 2018-09: $60.50 per share

- 2018-10: $56.83 per share

- 2018-11: $52.88 per share

- 2018-12: $44.99 per share

- 2019-01: $46.93 per share

- 2019-02: $57.78 per share

- 2019-03: $57.06 per share

- 2019-04: $58.03 per share

- 2019-05: $60.45 per share

- 2019-06: $67.81 per share

- 2019-07: $62.13 per share

- 2019-08: $58.84 per share

- 2019-09: $61.36 per share

- 2019-10: $56.84 per share

- 2019-11: $58.86 per share

- 2019-12: $59.45 per share

- 2020-01: $54.30 per share

- 2020-02: $45.34 per share

- 2020-03: $35.01 per share

- 2020-04: $51.74 per share

- 2020-05: $52.50 per share

- 2020-06: $61.49 per share

- 2020-07: $57.42 per share

- 2020-08: $54.59 per share

- 2020-09: $52.03 per share

- 2020-10: $51.19 per share

- 2020-11: $58.30 per share

- 2020-12: $63.72 per share

- 2021-01: $68.19 per share

- 2021-02: $68.48 per share

- 2021-03: $66.24 per share

- 2021-04: $70.81 per share

- 2021-05: $78.85 per share

- 2021-06: $75.35 per share

- 2021-07: $71.36 per share

- 2021-08: $73.03 per share

- 2021-09: $68.64 per share

- 2021-10: $72.18 per share

- 2021-11: $84.66 per share

- 2021-12: $91.94 per share

- 2022-01: $82.85 per share

- 2022-02: $83.55 per share

- 2022-03: $85.74 per share

- 2022-04: $85.15 per share

- 2022-05: $81.98 per share

- 2022-06: $73.73 per share

- 2022-07: $81.94 per share

- 2022-08: $86.31 per share

- 2022-09: $80.00 per share

- 2022-10: $85.71 per share

- 2022-11: $80.56 per share

- 2022-12: $87.51 per share

- 2023-01: $90.25 per share

- 2023-02: $111.68 per share

- 2023-03: $116.00 per share

- 2023-04: $108.31 per share

- 2023-05: $100.34 per share

- 2023-06: $114.20 per share

- 2023-07: $119.14 per share

- 2023-08: $108.79 per share

- 2023-09: $101.91 per share

- 2023-10: $96.98 per share

- 2023-11: $113.11 per share

- 2023-12: $130.13 per share

- 2024-01: $116.97 per share

- 2024-02: $134.32 per share

- 2024-03: $131.75 per share

- 2024-04: $114.94 per share

- 2024-05: $114.38 per share

- 2024-06: $108.13 per share

- 2024-07: $120.43 per share

- 2024-08: $116.04 per share

- 2024-09: $111.86 per share

- 2024-10: $101.63 per share

- 2024-11: $115.62 per share

- 2024-12: $98.88 per share

- 2025-01: $101.00 per share

- 2025-02: $91.36 per share

- 2025-03: $81.60 per share

- 2025-04: $83.01 per share

- 2025-05: $77.43 per share

- 2025-06: $79.37 per share

- 2025-07: $105.30 per share

- 2025-08: $110.80 per share

- 2025-09: $120.81 per share

- 2025-10: $114.63 per share

- 2025-11: $122.19 per share

- 2025-12: $124.32 per share

- 2026-01: $138.28 per share

- 2026-02: $163.06 per share

- 2026-03: $144.65 per share

- 2026-04: $183.81 per share

- 2026-05: $220.04 per share

- 2026-06: $297.39 per share

- 2026-07: $210.84 per share

- 2026-08: $236.08 per share

- 2026-09: $269.59 per share

- 2026-10: $252.16 per share

## Annual estimated value (USD per share)

- FY2016: low $13.50 per share, central $15.28 per share, high $17.65 per share

- FY2017: low $15.95 per share, central $18.03 per share, high $20.78 per share

- FY2018: low $17.02 per share, central $19.85 per share, high $22.74 per share

- FY2019: low $20.34 per share, central $24.62 per share, high $27.94 per share

- FY2020: low $13.87 per share, central $15.77 per share, high $18.30 per share

- FY2021: low $17.60 per share, central $20.03 per share, high $23.26 per share

- FY2022: low $46.09 per share, central $54.58 per share, high $63.52 per share

- FY2023: low $43.74 per share, central $52.27 per share, high $60.86 per share

- FY2024: low $19.80 per share, central $22.53 per share, high $26.16 per share

- FY2025: low $48.26 per share, central $59.39 per share, high $69.26 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1104657/000110465726000011/mtrn-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.