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Materion Corporation (MTRN)

Company Dividend Discount ModelIndustry: Industrial MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$12.35 - $21.51$16.27
Multi-Stage$13.83 - $15.11$14.46
Blended Fair Value$15.36
Current Price$119.43
Upside-87.14%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.60%4.91%0.530.510.490.460.440.420.400.380.360.34
YoY Growth--4.39%4.54%4.77%4.75%4.53%5.57%6.02%5.56%5.10%3.89%
Dividend Yield--0.64%0.39%0.42%0.53%0.65%1.20%0.70%0.74%1.07%1.30%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)19.40
(-) Cash Dividends Paid (M)11.40
(=) Cash Retained (M)8.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.882.421.45
Cash Retained (M)8.008.008.00
(-) Cash Required (M)-3.88-2.42-1.45
(=) Excess Retained (M)4.125.576.54
(/) Shares Outstanding (M)20.9020.9020.90
(=) Excess Retained per Share0.200.270.31
LTM Dividend per Share0.550.550.55
(+) Excess Retained per Share0.200.270.31
(=) Adjusted Dividend0.740.810.86
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.91%3.91%4.91%
Fair Value$12.35$16.27$21.51
Upside / Downside-89.66%-86.38%-81.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)19.4020.1620.9521.7622.6223.5024.21
Payout Ratio58.77%65.01%71.26%77.51%83.75%90.00%92.50%
Projected Dividends (M)11.4013.1014.9316.8718.9421.1522.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.91%3.91%4.91%
Year 1 PV (M)11.9012.0112.13
Year 2 PV (M)12.3012.5412.78
Year 3 PV (M)12.6212.9913.37
Year 4 PV (M)12.8613.3713.89
Year 5 PV (M)13.0413.6814.36
PV of Terminal Value (M)226.35237.56249.21
Equity Value (M)289.07302.16315.74
Shares Outstanding (M)20.9020.9020.90
Fair Value$13.83$14.46$15.11
Upside / Downside-88.42%-87.90%-87.35%

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