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ZYBERNO

Stock Report

Updated Aug 30, 2026

MATERION CORPORATION (MTRN)

Industrial • NYSE

$237.74

Materion Corporation is an American manufacturer of highly engineered advanced materials headquartered in Mayfield Heights, Ohio. The company produces beryllium-containing alloys and composites, precision coatings, and specialty materials for aerospace, defense, semiconductor, energy, industrial, and medical imaging applications, with beryllium copper alloys as a key product used in electronics and defense.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

37.0/100

WEAK BUSINESS

MATERION CORPORATION (MTRN) scores 37/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full MTRN quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-19.3%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full MTRN valuation analysis · → View full MTRN Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):POOR (9.4%)

Debt-to-Equity (Solvency Risk):GOOD (0.50x)

Operating Margin (Operational Efficiency):POOR (6.0%)

Return on Capital (Capital Efficiency):POOR (7.7%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

MATERION CORPORATION (MTRN) stock report — Zyberno Score 37/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, MATERION CORPORATION (MTRN) shows a Brina Gap of -19.3%, which weakens the case: based on the company's ROIC (7.7%) and reinvestment rate (3.4%), the business can fundamentally grow at 0.3% — but the current enterprise value implies the market expects 19.5%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:237.74

Market Cap:$4.95B

Valuation Multiples (4)

P/E Ratio:

55.55x

📊 Click to view full MTRN P/E analysis →

P/B Ratio:4.98x

P/S Ratio:2.36x

Peg Ratio:0.67x

Enterprise Metrics (3)

Enterprise Value:$5.37B

Ev Ebitda Ratio:28.30x

Pfcf Ratio:99.07x

Price Action & Momentum (3)

12-1 Momentum:

+129.8% (98th pctile)

📈 Click to view full MTRN Momentum analysis →

Momentum Percentile:98 / 100

% of 52-Week High:78.1%

B. Profitability Assessment

Return Metrics (7)

ROE:

9.4%

📊 Click to view full MTRN ROE analysis →

ROA:4.9%

Roic:

7.7%

📊 Click to view full MTRN ROIC analysis →

Reinvestment Rate:3.4%

Fundamental Growth Rate (g):0.3%

Market-Implied Growth Rate:19.5%

Brina Gap:

-19.3%

☷ Click to view full MTRN Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:6.0%

Net Margin Ttm:4.3%

Ebitda Margin:9.0%

TTM Performance (3)

Gross Margin Ttm:16.0%

Operating Margin Ttm:6.0%

Net Margin Ttm:4.3%

Yield Metrics (2)

Earnings Yield:$1.80

Dividend Yield:0.2%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+1.03

📊 Click to view full MTRN Earnings Surprise analysis →

EPS Surprise vs Expected:49.9%

Latest Earnings Filed:2026-08-05

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):7.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-5.2%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):2.9%

Operating Cash Flow Growth Rate (Linear):-11.6%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-5.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.94x

Quick Ratio:1.29x

Cash Ratio:0.07x

Leverage Analysis (3)

Debt To Equity Ttm:0.50x

Debt-to-Equity Ratio:0.50x

Debt To Ebitda:2.32x

Coverage Ratios (2)

Interest Coverage Ratio:3.58x

Times Interest Earned:3.58

Capital Structure (4)

Working Capital:574,164,000.00

Cash And Cash Equivalents:19,987,000.00

Long Term Debt:$423.21M

Net Debt:$420.70M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $2.10B

Linear Growth: 7.0%

📊 Click to view full MTRN Revenue analysis & methodology →

Cost Of Revenue Ttm:$1.76B

Profitability Breakdown (2)

Gross profit TTM: $335.97M

Linear Growth: -1.8%

📊 Click to view full MTRN Gross Profit analysis & methodology →

Operating income TTM: $125.67M

Linear Growth: -5.9%

📊 Click to view full MTRN Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $90.12M

Linear Growth: -5.2%

📊 Click to view full MTRN Net Income analysis & methodology →

Income Before Tax:$96.85M

Ebitda Ttm:189,785,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:25,742,000.00

Sga Expense:151,094,000.00

Income Tax Expense:$14.00M

Interest Expense:30,649,000.00

Expense Ratios (3)

R And D To Revenue Percentage:4.2%

Sga To Revenue Percentage:24.6%

Ebitda Margin:9.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.87B

Current Assets:$869.96M

Ppe Net:531,687,000.00

Goodwill:280,186,000.00

Intangible Assets:$99.89M

Liability Structure (4)

Total Liabilities:875,830,000.00

Current Liabilities:295,792,000.00

Long Term Debt:$423.21M

Short Term Debt:$17.48M

Equity & Capital (3)

Equity:$994.87M

Retained Earnings:$964.47M

Common Stock:380,134,000.00

Working Capital Items (3)

Accounts Receivable:260,779,000.00

Inventory:487,444,000.00

Accounts Payable:192,292,000.00

Special Items (2)

Contract Liabilities:41,100,000.00

Stock Based Compensation:5,200,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $83.43M

Linear Growth: -11.6%

Free cash flow TTM: $49.96M

Linear Growth: 2.9%

📊 Click to view full MTRN Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$15.35M

Financing Activities (3)

Financing Cash Flow:$22.38M

Dividends Paid Ttm:11,731,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$1.57M

Non-Cash Items (1)

Depreciation Amortization Ttm:64,117,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):4.34

Eps diluted TTM: $4.28

Linear Growth: -5.7%

📊 Click to view full MTRN EPS analysis & methodology →

Earnings Per Share Ttm:$4.33

Revenue & Cash Per Share (2)

Sales Per Share Ttm:100.78

Operating Cash Flow Per Share:$4.96

Book Value & Capital (2)

Book Value Per Share:$47.78

Cash Per Share:0.96

Dividend Policy (1)

Dividend Payout Ratio:15.13x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.14x

Working Capital Turnover Ttm:3.65x

Receivables Management (2)

Receivables Turnover Ttm:8.05x

Days Sales Outstanding Ttm:45.36

Inventory Management (2)

Inventory Turnover Ttm:3.62x

Days Inventory Outstanding Ttm:100.96

Payables & Cash Cycle (2)

Days Payable Outstanding:39.83

Cash Conversion Cycle:106.49

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:85.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:3.4%

Fundamental Growth Rate (g):0.3%

Market-Implied Growth Rate:19.5%

Brina Gap:

-19.3%

☷ Click to view full MTRN Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):7.0%

Net Income Growth Rate (Linear):-5.2%

Operating Income Growth Rate (Linear):-5.9%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):2.9%

Operating Cash Flow Growth Rate (Linear):-11.6%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-1.8%

Book Value Growth Rate (Linear):6.3%

C. Company Profile & Context

Corporate Information (6)

Symbol:MTRN

Company Name:MATERION CORPORATION

Sector:Industrial

Industry:Metal Forgings & Stampings

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:premium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:20.82M

Shares Outstanding Basic:20.82M

Shares Outstanding Diluted:21.08M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-30 07:15:48 UTC

Data Timestamp:2026-08-30T07:15:48.273107