- Materion has been delivering improving business momentum across a wider set of end-markets, but the shares have been underperforming.
- Second quarter value-added revenue grew 31% and EBITDA rose 89%, with management raising guidance for the rest of the year.
- Materion is leveraged to long-term growth in semiconductor volumes, a commercial aerospace recovery, and increasing electrification of cars, as well as strong near-term markets like construction and mining.
- The key to the Materion bull case is that management's focus on more differentiated, higher-value, and higher-margin products and end-markets will drive a significant upturn in margins.
- If Materion can produce 6% long-term revenue growth and drive that strong margin leverage, these shares can deliver a double-digit long-term annualized return from here.
For further details see:
Materion's Lagging Share Price Performance Getting More Interesting