Materion Corporation (MTRN)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that earns high returns on capital and throws off cash, bought at a sensible price. Materion is a specialized advanced-materials producer with four segments and about 3,000 employees. Its recent figures are impressive: in fiscal Q2 2026, the quarter ended 2026-07-03, revenue was $613.9M, net income $38.8M, and diluted EPS $1.84, against $431.7M, $25.1M, and $1.21 in fiscal Q2 2025, the quarter ended 2025-06-27. That is real momentum. The balance sheet looks reasonably sturdy, with D/E of 0.51, FairStock's Altman Z-Score of 5.39, and FairStock's Piotroski F-Score of 7/9. But the quality of the economics is not yet compelling. FairStock calculates ROE at 9.46% and ROCE at 4.60%, and trailing free cash flow is only $32.4M, a 0.6% FCF yield on a $5.7B market cap. The Lynch category is cyclical - earnings follow the economic cycle - and filed full-year figures show why: net income was $95.7M in fiscal year 2023, $5.9M in fiscal year 2024, and $74.8M in fiscal year 2025. At the 2026-10-13 close of $271.84, FairStock's P/E is 63.22, P/B is 5.69, and EV/EBITDA is 30.75. Its Graham Number is $67.97, leaving a margin of safety of -299.94%. A PEG of 0.56 may look attractive, but that profit growth is off a depressed base. I see a decent niche business with cyclical earnings and a price that already discounts a lot of recovery. I would want a much wider gap between price and intrinsic value before calling it compelling.

In plain English: Materion makes advanced engineered materials, including metals and alloys, for industrial customers. Its latest quarter showed much stronger sales and profit than a year earlier, but the business is cyclical and full-year profits have swung a lot. At the latest price, the shares look expensive compared with the company's current earnings, book value, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer