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Mattr Corp. (TSE:MATR)
TSX:MATR
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Mattr
(TSX:MATR)
51Neutral
Positive Factors
Earnings
MATR's Q4/24 results were slightly above expectations, indicating a stronger performance than anticipated.
Growth Profile
The company's long-term growth profile remains solid, particularly its ongoing manufacturing additions and recent acquisition.
Manufacturing Capacity
Moving more manufacturing capacity to the U.S. should lower risks associated with tariff-related exposure.
Negative Factors
Margins
Margins were impacted by some added costs and a less favourable product mix.
Operational Costs
Costs continue to weigh on operational performance, posing challenges for the company.
Revenue
Revenue of $120 million rose 7% while EBITDA margins of 8% decreased ~900 bps Y/Y.
Mattr (MATR) vs. S&P 500 (SPY)
Market Cap
C$642.07M
Dividend YieldN/A
Average Volume (3M)355.65K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-24.05%
EPS Growth-105.22%
CountryCA
Employees1,810
SectorEnergy
Sector Strength84
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.06
Shares Outstanding62,701,874
10 Day Avg. Volume395,871
30 Day Avg. Volume355,648
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.80
Price to Cash Flow (P/CF)3.90
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.00Price Target Upside41.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Mattr Business Overview & Revenue Model
Company DescriptionMattr Corp. operates as a material sciences company that serves the infrastructure, energy, and transportation markets worldwide. It operates through three segments: Composite Systems, Automotive and Industrial, and Pipeline and Pipe Services. The Composite Systems segment manufactures flexible composite that are used for oil and gas gathering, and other applications; fiberglass reinforced plastic underground storage tanks for the retail fuel, water and wastewater, and oil and gas markets. The Automotive and Industrial segment manufactures heat-shrinkable products, including thin, medium, and heavy-walled tubing; sleeves and molded products, as well as heat-shrink accessories and equipment; and low-voltage wires and cables for control, instrumentation, thermocouple, power, and industrial applications. The Pipeline and Pipe Services segment offers ultrasonic and radiographic pipeline girth weld inspection services to pipeline operators and construction contractors. The company was formerly known as Shaw Industries Ltd. and changed its name to Shawcor Ltd. in 2001. Shawcor Ltd. was founded in 1930 and is headquartered in Toronto, Canada.
How the Company Makes MoneyMattr generates revenue through the sale of its advanced materials and technology solutions to businesses across telecommunications, energy, and infrastructure sectors. Its key revenue streams include licensing its proprietary technologies, direct sales of its products, and providing specialized consulting services. Significant partnerships with industry leaders and investments in research and development also contribute to its earnings by expanding its market reach and enhancing product offerings.
Mattr Financial Statement Overview
Summary
Mattr faces structural challenges with fluctuating revenues and profitability. The balance sheet is stable but carries increased leverage, and negative free cash flow raises liquidity concerns. Strategic improvements are needed for better financial stability.Income Statement
The income statement reveals a mixed performance with fluctuating revenues and profitability. Gross profit margin has declined over the years, indicating pressure on cost management. Net income has been volatile with alternating profits and losses, reflecting operational challenges. Recent EBIT and EBITDA margins are stable but below industry peers, suggesting limited efficiency improvements.55
Neutral
Balance Sheet
The balance sheet shows a moderate financial position with a stable equity base. The debt-to-equity ratio has increased, indicating higher leverage which could pose risks if not managed carefully. Return on equity has been negative due to net losses, but the equity ratio remains robust, providing some buffer against liabilities.65
Positive
Cash Flow
Cash flow analysis highlights concerns with negative free cash flow in the latest period, indicating potential liquidity issues. Operating cash flow has decreased, reflecting challenges in sustaining positive cash generation. The free cash flow to net income ratio is unfavorable, pointing to inefficiencies in translating earnings into cash.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 885.32M | 925.27M | 1.26B | 1.14B | 1.18B | Gross Profit |
| 243.84M | 296.44M | 364.70M | 318.12M | 322.54M | EBIT |
| 40.12M | 81.54M | 68.95M | -45.23M | -261.34M | EBITDA |
| 85.07M | 121.27M | 147.78M | 29.86M | -117.87M | Net Income Common Stockholders |
| -3.73M | 87.19M | -29.99M | -79.11M | -234.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 375.24M | 334.06M | 263.99M | 124.45M | 214.51M | Total Assets |
| 1.63B | 1.28B | 1.55B | 1.27B | 1.53B | Total Debt |
| 640.37M | 232.46M | 270.27M | 346.58M | 505.55M | Net Debt |
| 265.13M | -101.60M | 6.28M | 222.13M | 291.04M | Total Liabilities |
| 908.38M | 548.62M | 849.44M | 625.68M | 808.90M | Stockholders Equity |
| 721.10M | 730.16M | 699.38M | 639.27M | 712.70M |
| Cash Flow | Free Cash Flow | |||
| -59.05M | 48.35M | 161.02M | 39.61M | 20.42M | Operating Cash Flow |
| 51.35M | 124.61M | 211.10M | 64.68M | 44.44M | Investing Cash Flow |
| -154.99M | 109.82M | 19.50M | 3.83M | 106.57M | Financing Cash Flow |
| 259.84M | -161.78M | -111.65M | -163.53M | -36.86M |
Mattr Technical Analysis
Neutral
10.60
Price Trends
11.04
Negative
12.14
Negative
13.60
Negative
Market Momentum
-0.10
Negative
49.04
Neutral
21.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MATR, the sentiment is Neutral. The current price of 10.6 is above the 20-day moving average (MA) of 10.38, below the 50-day MA of 11.04, and below the 200-day MA of 13.60, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MATR.
Mattr Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$31.87B | 45.20 | 9.33% | 0.61% | 11.98% | 22.53% | |
73 Outperform | C$554.63M | 21.29 | 8.37% | 1.40% | 2.41% | -16.76% | |
71 Outperform | C$1.56B | 9.74 | 8.50% | 4.82% | -4.75% | 68.04% | |
58 Neutral | $9.12B | 5.24 | -7.59% | 7.51% | 0.53% | -65.25% | |
51 Neutral | C$642.07M | ― | -0.40% | ― | -24.05% | -105.22% | |
51 Neutral | C$1.06B | ― | -5.87% | 4.49% | -8.64% | -136.62% |
* Energy Sector Average
Performance Comparison
TSE:MATR
Mattr
10.60
-6.69
-38.69%
STN
Stantec
83.68
3.07
3.81%
TSE:ARE
Aecon Group Inc.
16.94
0.25
1.50%
TSE:BDI
Black Diamond
8.77
0.06
0.69%
TSE:TCL.A
Transcontinental
18.79
5.26
38.88%
TSE:WSP
WSP Global
246.86
39.73
19.18%
Mattr Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 12.41% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strategic progress and market share gains despite revenue and EBITDA declines. Challenges include sector-specific weaknesses and increased costs, but strategic moves like acquisitions and divestitures indicate long-term growth potential.Highlights
Revenue and Adjusted EBITDA Performance
Mattr delivered $250 million in revenue and $37 million in adjusted EBITDA for Q3 2024, with adjusted earnings per share of $0.23.
Strategic Acquisitions and Divestitures
Announced the planned acquisition of AmerCable, expected to be immediately and materially accretive. Pending sale of the last remaining pipe coating business to Vallourec.
Water Products Business Record
The water products business set a new quarterly revenue record, driven by strong demand for storage and treatment solutions.
Connection Technologies Segment Growth
The Connection Technologies segment set a new Q3 revenue record, nearly 10% higher year-over-year, driven by industrial sector demand.
Positive Market Share Gains
Flexpipe's share gains within the U.S. and Canadian onshore markets resulted in revenue gains despite market downturns.
Lowlights
Decreased Adjusted EBITDA
Adjusted EBITDA from continuing operations decreased by 26.9% compared to the previous year, primarily due to changes in product and customer mix and higher warranty costs.
Challenges in Composites Technologies
Sequential revenue decline in Composite Technologies due to reduced international Flexpipe sales and unfavorable customer mix in Xerxes.
Anticipated Weakness in Key Sectors
Continued weakness in North American onshore oilfield, Eurozone industrial, and global automotive markets expected to persist into 2025.
Seasonal and Market-Driven Slowdowns
Projected seasonal slowing in Q4 2024, with reduced revenue and EBITDA expected due to macroeconomic factors affecting oilfield and automotive sectors.
Under-absorption Costs
Increased under-absorption costs due to slower-than-expected ramp-up of new manufacturing facilities, impacting margins.
Company Guidance
During the third quarter of 2024 earnings call for MATR.TO, significant guidance was provided regarding the company's financial and operational outlook. Mattr reported consolidated revenue of $250 million, an adjusted EBITDA of $37 million, and adjusted earnings per share of $0.23. The company highlighted strategic moves, such as the establishment of two new manufacturing sites in the Composite Technologies segment and the planned acquisition of AmerCable, expected to be immediately accretive. Mattr anticipates continued weakness in the North American oilfield and global automotive markets into 2025, alongside elevated North American critical infrastructure demand. To optimize operations, a $20 million annual cost reduction plan is underway, primarily targeting the fixed cost base. The company remains focused on long-term goals to double revenue by 2030 and achieve EBITDA margins above 20%, supported by investments in technology and operational efficiency.Mattr Corporate Events
M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Mattr Corp. Reports 2024 Financial Results and Strategic Acquisition
Neutral
Mar 13, 2025
Mattr Corp. reported a full-year 2024 revenue of $960 million with a net loss of $4 million, and a significant acquisition of AmerCable for $280 million to bolster its Connection Technologies segment. Despite a decrease in Adjusted EBITDA from Continuing Operations, the company is strategically positioned for growth with new manufacturing facilities and share repurchases, aiming to enhance margins and reduce volatility.
Financial Disclosures
Mattr Corp. Announces 2025 Earnings Release Schedule
Neutral
Feb 19, 2025
Mattr Corp. has announced its earnings release schedule and related conference calls for the financial periods up to the fourth quarter of 2025. The company will provide detailed financial results and host conference calls/webcasts to discuss these results after market close on specified dates. This announcement is likely to keep stakeholders informed and engaged with Mattr’s financial performance and strategic direction throughout the upcoming quarters.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.