Materion Corporation Intrinsic Value Calculation – MATERION CORPORATION Reports Q2 Earnings Results for FY2023
August 4, 2023
🌥️Earnings Overview
On August 2 2023, MATERION CORPORATION ($NYSE:MTRN) reported their financial results for the second quarter of FY2023 ending on June 30 2023. The company saw a total revenue of USD 398.6 million, a 10.5% drop from the previous year. Despite this, net income rose 3.5% to USD 24.1 million in the same period.
Market Price
The stock opened at $110.6 and closed at $107.9, a decrease of 7.7% from the previous day’s closing price of $116.9. Overall, the quarter saw a decrease in revenue compared to the same period in the previous year. The decline in revenue was attributed to a combination of reduced production due to the ongoing pandemic and weaker demand for certain products.
In addition, MATERION CORPORATION also announced that it would be taking proactive steps to reduce costs and improve operational efficiency in order to offset some of the current challenges. This includes launching new initiatives to focus on cost cutting and streamlining operations across the business. Despite the decline in revenue, the company’s CEO expressed confidence in the company’s long-term growth prospects. He pointed to the company’s diverse portfolio of materials and products, as well as its commitment to innovation, as factors that will help them remain competitive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Materion Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 1.7k | 98.39 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Materion Corporation. More…
| Operations | Investing | Financing |
| 165.06 | -101.81 | -77.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Materion Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.74k | 890.59 | 41.11 |
Key Ratios Snapshot
Some of the financial key ratios for Materion Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.5% | 37.7% | 8.5% |
| FCF Margin | ROE | ROA |
| 3.6% | 10.9% | 5.2% |
Analysis – Materion Corporation Intrinsic Value Calculation
We at GoodWhale have conducted an analysis of MATERION CORPORATION‘s fundamentals, and determined that its fair value share price is around $89.5, which is calculated by our proprietary Valuation Line. Currently, MATERION CORPORATION’s stock is trading at $107.9, which is overvalued by 20.6%. This suggests that investors are potentially exaggerating the company’s prospects and the stock is trading at a premium. More…
Peers
Materion Corp, Advanced Technology & Materials Co Ltd, Toho Titanium Co Ltd, and Anhui Xinke New Materials Co Ltd are all in competition with each other to be the leading supplier of titanium and other materials. All four companies are striving to develop new and innovative ways to produce titanium and other materials faster, cheaper, and with fewer emissions.
– Advanced Technology & Materials Co Ltd ($SZSE:000969)
Advanced Technology & Materials Co Ltd has a market cap of 8.11B as of 2022, a Return on Equity of 4.03%. The company manufactures and sells a variety of products, including electronic components, semiconductors, and optoelectronic devices. It also provides services such as research and development, design, and packaging.
– Toho Titanium Co Ltd ($TSE:5727)
Toho Titanium Co. Ltd. engages in the production and sale of titanium products. It operates through the Titanium and Other Products segments. The Titanium segment offers titanium sponge, titanium ingots, titanium mill products, and titanium products for industrial applications. The Other Products segment includes zircon products, hafnium products, and rare metals. The company was founded by Kichinosuke Taguchi on August 1, 1950 and is headquartered in Tokyo, Japan.
– Anhui Xinke New Materials Co Ltd ($SHSE:600255)
Anhui Xinke New Materials Co., Ltd. is engaged in the research, development, production and sales of rare earth, new inorganic functional materials and new energy products. The Company operates its business through three segments. The Rare Earth and New Inorganic Functional Materials segment is engaged in the research and development, production and sales of rare earth smelting and separation, new inorganic functional materials and new energy products. The Chemical Products Segment is engaged in the research and development, production and sales of chemical products. The Others segment is engaged in the provision of technical services. The Company’s products include rare earth oxides, rare earth metals, rare earth alloys, new inorganic functional materials and new energy products, among others.
Summary
Materion Corporation reported their earnings results for the second quarter of FY2023, ending June 30, 2023. The company saw a 10.5% decrease in total revenue compared to the same period the previous year, sitting at USD 398.6 million. Net income, however, increased by 3.5%, landing at USD 24.1 million. Investors responded negatively to the results, with the stock price dropping the same day.
Despite the decrease in revenue, investors should be encouraged by the 3.5% increase in net income as this indicates that the company is still able to generate profits. With the potential for additional cost savings and increased sales, Materion Corporation could be a strong investment opportunity.
