DCF Tool

MTRN

Materion Corp – Nonferrous Metal Die-Casting Foundries
Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies highly engineered advanced enabling materials to global markets. Its unique product portfolio includes high performance alloys, beryllium products, clad metal strip, composite metals, ceramics, inorganic chemicals, microelectronics packaging materials, precision optics, thin film coatings, and thin film deposition materials.
Analysis Results
Intrinsic Value $150.30
Latest Price $104.44
Relative Value 31% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 139 127
2024 163 138
2025 192 148
2026 225 160
2027 265 173
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3920 million. This corresponds to a present value of 2350 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 747 million. Adding in the terminal value gives a total present value of 3100 million.

There are presently 20.6 million outstanding shares, so the intrinsic value per share is 150.3.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 690,448,000
Current Cash 13,101,000
Current Liabilities 238,964,000
Current Debt 21,105,000
Non-Cash Working Capital (NCWC) 459,488,000
Change in NCWC 35,848,000
EBIT 120,953,000
Tax Provision 17,110,000
Depreciation and Amortization 53,436,000
Capital Expenditure -77,608,000
Unlevered Free Cash Flow 112,556,198
Current Assets 627,252,000
Current Cash 14,462,000
Current Liabilities 204,509,000
Current Debt 15,359,000
Non-Cash Working Capital (NCWC) 423,640,000
Change in NCWC 110,466,000
EBIT 78,132,000
Tax Provision 4,851,000
Depreciation and Amortization 44,137,000
Capital Expenditure -102,910,000
Unlevered Free Cash Flow 124,923,372
Current Assets 463,999,000
Current Cash 25,878,000
Current Liabilities 126,884,000
Current Debt 1,937,000
Non-Cash Working Capital (NCWC) 313,174,000
Change in NCWC 67,766,000
EBIT 27,423,000
Tax Provision -7,187,000
Depreciation and Amortization 42,384,000
Capital Expenditure -67,274,000
Unlevered Free Cash Flow 70,299,000
Current Assets 491,987,000
Current Cash 125,007,000
Current Liabilities 122,440,000
Current Debt 868,000
Non-Cash Working Capital (NCWC) 245,408,000
Change in NCWC 15,657,000
EBIT 83,149,000
Tax Provision 11,330,000
Depreciation and Amortization 41,116,000
Capital Expenditure -26,528,000
Unlevered Free Cash Flow 98,196,739
Current Assets 439,353,000
Current Cash 70,645,000
Current Liabilities 139,780,000
Current Debt 823,000
Non-Cash Working Capital (NCWC) 229,751,000
Change in NCWC -13,016,000
EBIT 69,581,000
Tax Provision -4,504,000
Depreciation and Amortization 35,524,000
Capital Expenditure -34,260,000
Unlevered Free Cash Flow 57,829,000
Current Assets 410,943,000
Current Cash 41,844,000
Current Liabilities 127,109,000
Current Debt 777,000
Non-Cash Working Capital (NCWC) 242,767,000
Change in NCWC 18,591,000
EBIT 37,932,000
Tax Provision 24,945,000
Depreciation and Amortization 42,751,000
Capital Expenditure -29,076,000
Unlevered Free Cash Flow 44,200,260
Current Assets 345,284,000
Current Cash 31,464,000
Current Liabilities 90,377,000
Current Debt 733,000
Non-Cash Working Capital (NCWC) 224,176,000
Change in NCWC -10,194,000
EBIT 30,071,000
Tax Provision -425,000
Depreciation and Amortization 45,651,000
Capital Expenditure -37,038,000
Unlevered Free Cash Flow 28,490,000
Current Assets 346,091,000
Current Cash 24,236,000
Current Liabilities 96,483,000
Current Debt 8,998,000
Non-Cash Working Capital (NCWC) 234,370,000
Change in NCWC -35,761,000
EBIT 35,857,000
Tax Provision 10,660,000
Depreciation and Amortization 37,817,000
Capital Expenditure -52,090,000
Unlevered Free Cash Flow -23,103,984
Current Assets 386,694,000
Current Cash 13,150,000
Current Liabilities 104,066,000
Current Debt 653,000
Non-Cash Working Capital (NCWC) 270,131,000
Change in NCWC -8,150,000
EBIT 43,434,000
Tax Provision 12,449,000
Depreciation and Amortization 42,721,000
Capital Expenditure -30,559,000
Unlevered Free Cash Flow 37,464,278
Current Assets 394,505,000
Current Cash 22,774,000
Current Liabilities 129,016,000
Current Debt 35,566,000
Non-Cash Working Capital (NCWC) 278,281,000
Change in NCWC -7,017,000
EBIT 28,546,000
Tax Provision 4,088,000
Depreciation and Amortization 41,649,000
Capital Expenditure -32,624,000
Unlevered Free Cash Flow 25,649,774
Current Assets 400,989,000
Current Cash 16,056,000
Current Liabilities 149,067,000
Current Debt 49,432,000
Non-Cash Working Capital (NCWC) 285,298,000
Change in NCWC 25,379,000
EBIT 36,806,000
Tax Provision 8,978,000
Depreciation and Amortization 37,046,000
Capital Expenditure -44,661,000
Unlevered Free Cash Flow 44,747,627

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