Materion Corporation (NYSE:MTRN) Suggested Holdings at 0.03890 of Portfolio

When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock.  Materion Corporation (NYSE:MTRN) has a current target weight (% as a decimal) of 0.03890.  This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group.  This number is based on recent stock volatility for the past 100 days.

When it comes to equity investing, being too confident may be just as detrimental as not being confident enough. Many investors may think they are making all the right moves when the markets are riding high. This may be the case, but sometimes it might be good fortune. Finding confidence to make trades in down market environments may make the difference between a good portfolio and a great portfolio. It can also be quite easy to confuse skill with a long-term bull market. Many bad decisions may still get rewarded when the market keeps heading higher. On the other end of the spectrum, having too much self-doubt may leave an investor with way too many what ifs. Managing confidence in the markets may play a pivotal role when making tough investing decisions. Finding that perfect balance between the needed gusto and the correct amount of caution may help ease the burden moving forward in the equity market.

Materion Corporation (NYSE:MTRN) of the Industrial Engineering sector closed the recent session at 55.190000 with a market value of $1121303.

Taking look at some key returns data we can note the following:

So how has Materion Corporation (NYSE:MTRN) performed in terms of returns?  The ROIC quality score stands at 16.740965 whilet he actual return on invested capital holds at  0.054363.  Materion Corporation’s book to market ratio is at 0.493984 while the book to market mean difference is -0.23817. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Materion Corporation (NYSE:MTRN) has seen free cash flow growth of 0.331880 and has a free cash flow score of 0.869383.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.140977 for Materion Corporation (NYSE:MTRN).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

There is no easy answer when attempting to address the tough question of how to best approach the equity market, especially when facing a turbulent investing climate. There are many different schools of thought when it comes to stock trading. Investors may have to first gauge their appetite for risk in order to build a solid platform on which to construct a legitimate strategy. The wealth of available information has made the road a bit smoother to travel for amateur investors. Making the transition to the next level is most likely on the minds of many dedicated investors. Tracking technicals and fundamentals may also help provide a roadmap to help separate the contenders from the pretenders. As we head into the second half of the year, it remains to be seen which way the market will lean. Investors may have to do all the necessary homework in order to find stocks that will thrive under any market conditions. 

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Materion Corporation (NYSE:MTRN)’s Cash Flow to Capex stands at 2.229247.

Debt

In looking at some Debt ratios, Materion Corporation (NYSE:MTRN) has a debt to equity ratio of 0.03270 and a Free Cash Flow to Debt ratio of 2.325456.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at -1.98815.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Materion Corporation’s ND to MV current stands at -0.046852. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investing in the stock market often requires individuals to gauge how much risk they are willing to take on for potential reward. Piling on too much risk can put the investor out of their comfort zone. On the flip side, taking on too little risk may not provide the opportunity to receive enough returns to achieve previously stated goals. Finding that perfect balance may come with some first-hand experience that includes some trial and error. 

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.12654 for Materion Corporation (NYSE:MTRN).  The one year Growth EBIT ratio stands at -0.38312 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at -0.28656 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.14208.  The one year growth in Net Profit after Tax is 0.82045 and lastly sales growth was 0.06000.

50/200 Simple Moving Average Cross

Materion Corporation (NYSE:MTRN) has a 0.98937 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

There is no shortage of financial news and opinions as we live in the age of the 24 hour news cycle. Headlines and expert opinions seem to be around every corner when dealing with the stock market. Trying to keep up with all the swirling news can make ones head spin. Even though there may be some significant news mixed in, a lot of the headlines may not be worth paying much attention to. Figuring out what information is useful may take some time for the investor to figure out. Once the filter is in place, investors may find it much easier to focus on the important data. Making investment decisions solely based on news headlines may end up causing the portfolio to suffer down the line. 

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