Materion Corporation (MTRN): a likely value trap?

Avoid — still expensive (P/E ~52) after a product quality scandal and a huge revenue miss, with no single new catalyst found for today's drop.

⚠ TRAP Fundamentals56/100

Fell 26% in 7 trading day(s) — now $189.34

Why MTRN dropped

There's no one clean headline explaining today's -9.7%; instead the stock has been grinding down since early July on a combination of a costly Precision Clad Strip 'quality event' that forced a plant shutdown and a $20-25M charge, persistent insider selling, and valuation services flagging the stock as badly overvalued the whole way down from $283 to today's $189.

Fwd P/E 24.9Op margin 5.7%Rev growth 30.8%Debt/equity 58.8%Analyst upside 33.4%

How this scored 56/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 4.0%

✅ Generates cash Free cash flow $-2M

✅ Not drowning in debt Debt/equity 58.8% (limit 200%)

✅ Can pay its bills Current ratio 3.0 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 5/25

Operating margin 5.7% 2/9

Net profit margin 4.0% 2/8

Return on equity 8.3% 1/8

Growth Is it getting bigger, or dying? 21/25

Revenue growth 30.8% 9/9

Earnings growth 8.2% 4/8

Expected profit change 108.2% 8/8

Value Is it cheap right now? 14/25

Forward P/E 24.9 5/10

PEG ratio 1.3 6/8

Analyst target upside 33.4% 4/7

Balance sheet Will it survive? 16/25

Debt / equity 58.8% 8/10

Current ratio 3.0 8/8

Free cash flow $-2M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-30. Research only — not financial advice.