MeritValue

MATERION Corp

MTRNdata completeness 88%17 fiscal years on file
The thesis, from the filings

MATERION Corp earns about 3% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $37.08 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.51B1$1.76B2$1.67B3$1.68B3$1.79B3
Net income$72.5M4$86M5$95.7M6$5.89M6$74.8M6
Operating cash flow$90.2M7$116M8$144.4M9$87.8M9$103.2M9
Capital expenditure$102.9M10$77.6M11$110.6M11$68.6M11—
Free cash flow (derived)−$12.7M7$38.4M8$33.9M9$19.2M9—
Total debt$919.7M12$888.9M13$893.8M14$920.2M15$941.9M15
Cash & equivalents$14.5M16$13.1M17$13.3M18$16.7M19$13.7M19
Diluted shares20.7M20.8M20.9M20.9M20.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$451.07
your share of equity
Profit it earned you last year
$35.78
Free cash flow it threw off
—
Debt you’d be carrying
$450.4

10 shares is a claim on $451.07 of net worth that earned you $35.78 last year, against $450.4 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 4%FY22 4%FY23 4%FY24 -1%FY25 2%

It earned an average 3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.1%
  • fcfBase$33.9M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.1%
  • fcfBase$33.9M
Earnings Power Value
$37.08
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$74.8M
  • growthAssumed0.0%
Graham Number
$60.28
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001104657-24-000019 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001104657-25-000024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001104657-26-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001104657-24-000019 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001104657-25-000024 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104657-26-000011 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001104657-24-000019 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001104657-25-000024 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104657-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001104657-24-000019 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001104657-25-000024 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2021-12-31 · accession 0001104657-23-000019 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2022-12-31 · accession 0001104657-24-000019 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-12-31 · accession 0001104657-25-000024 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-12-31 · accession 0001104657-26-000011 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2021-12-31 · accession 0001104657-23-000019 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-12-31 · accession 0001104657-24-000019 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001104657-25-000024 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001104657-26-000011 (CashAndCashEquivalentsAtCarryingValue)