NasdaqGS:MATW

Stock Analysis Report

Executive Summary

Matthews International Corporation provides brand solutions, memorialization products, and industrial products worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Matthews International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MATW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

MATW

3.8%

US Commercial Services

5.3%

US Market


1 Year Return

-33.8%

MATW

-15.7%

US Commercial Services

-10.7%

US Market

Return vs Industry: MATW underperformed the US Commercial Services industry which returned -15.7% over the past year.

Return vs Market: MATW underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

MATWIndustryMarket
7 Day5.9%3.8%5.3%
30 Day-18.4%-20.5%-13.6%
90 Day-36.8%-23.7%-19.8%
1 Year-32.2%-33.8%-12.7%-15.7%-8.9%-10.7%
3 Year-61.1%-63.0%17.7%10.1%15.5%8.0%
5 Year-49.5%-53.0%41.4%26.4%35.2%20.4%

Price Volatility Vs. Market

How volatile is Matthews International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Matthews International undervalued compared to its fair value and its price relative to the market?

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MATW ($24.13) is trading below our estimate of fair value ($36.54)

Significantly Below Fair Value: MATW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MATW is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: MATW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MATW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MATW is good value based on its PB Ratio (1.1x) compared to the US Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is Matthews International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

87.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MATW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: MATW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MATW's is expected to become profitable in the next 3 years.

Revenue vs Market: MATW's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: MATW's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MATW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Matthews International performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MATW is currently unprofitable.

Growing Profit Margin: MATW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MATW is unprofitable, and losses have increased over the past 5 years at a rate of -7% per year.

Accelerating Growth: Unable to compare MATW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MATW is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (2.5%).


Return on Equity

High ROE: MATW has a negative Return on Equity (-7.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Matthews International's financial position?


Financial Position Analysis

Short Term Liabilities: MATW's short term assets ($594.3M) exceed its short term liabilities ($283.3M).

Long Term Liabilities: MATW's short term assets ($594.3M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: MATW's debt to equity ratio (134.7%) is considered high.

Reducing Debt: MATW's debt to equity ratio has increased from 94.3% to 134.7% over the past 5 years.


Balance Sheet

Inventory Level: MATW has a high level of physical assets or inventory.

Debt Coverage by Assets: MATW's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MATW has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MATW has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Matthews International's current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MATW's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: MATW's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

Stable Dividend: MATW's dividends per share have been stable in the past 10 years.

Growing Dividend: MATW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: MATW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Joseph Bartolacci (59yo)

13.42s

Tenure

US$6,919,529

Compensation

Mr. Joseph C. Bartolacci has been the Chief Executive Officer and President of Matthews International Corporation since October 1, 2006 and September 1, 2005 respectively. Mr. Bartolacci served as Principa ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD6.92M) is above average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: Joseph's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Bartolacci
CEO, President & Director13.42yrsUS$6.92m1.08% $8.2m
Steven Nicola
CFO & Corporate Secretary16.25yrsUS$3.05m0.45% $3.4m
Brian Walters
Senior VP & General Counsel11yrsUS$1.20m0.12% $901.0k
Brian Dunn
Executive Vice President of Strategy & Corporate Development5.67yrsUS$1.72m0.17% $1.3m
Steven Gackenbach
Group President of Memorialization8.42yrsUS$1.24m0.28% $2.1m
Gregory Babe
CTO & Director9.25yrsUS$1.34m0.11% $868.4k
Davor Brkovich
Chief Information Officerno datano data0.0059% $44.3k
William Wilson
Senior Director of Corporate Development & Investor Relationsno datano datano data
Marcy Campbell
Senior Vice President of Human Resources5.25yrsno data0.049% $369.4k
Edward Brady
Head of Global Business Servicesno datano data0.022% $167.4k

8.4yrs

Average Tenure

59yo

Average Age

Experienced Management: MATW's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Bartolacci
CEO, President & Director13.42yrsUS$6.92m1.08% $8.2m
Gregory Babe
CTO & Director9.25yrsUS$1.34m0.11% $868.4k
John Turner
Independent Chairman of the Board10yrsUS$310.00k0.10% $785.6k
Alvaro Garcia-Tunon
Independent Director10.42yrsUS$225.00k0.087% $659.4k
Morgan O'Brien
Independent Director8.67yrsUS$220.00k0.053% $403.2k
David Schawk
Director5.67yrsUS$1.42m0.90% $6.8m
Terry Dunlap
Independent Director5yrsUS$210.00k0.028% $211.2k
Katherine Dietze
Independent Director11.67yrsUS$220.00k0.078% $592.1k
Don Quigley
Independent Director4.42yrsUS$210.00k0.021% $155.6k
Jerry Whitaker
Independent Director8.67yrsUS$220.00k0.043% $322.4k

9.0yrs

Average Tenure

62yo

Average Age

Experienced Board: MATW's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MATW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Matthews International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Matthews International Corporation
  • Ticker: MATW
  • Exchange: NasdaqGS
  • Founded: 1850
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$756.907m
  • Shares outstanding: 31.29m
  • Website: https://www.matw.com

Number of Employees


Location

  • Matthews International Corporation
  • Two NorthShore Center
  • Pittsburgh
  • Pennsylvania
  • 15212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MATWNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 1994
MW1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 1994

Biography

Matthews International Corporation provides brand solutions, memorialization products, and industrial products worldwide. The company’s SGK Brand Solutions segment provides brand development and graphic design services, such as visual intellectual properties, packaging, and content creation; brand deployment and activation services, including design and production of merchandising exhibits and shopper experiences in digital and printed media channels; and consulting services to brand owners on workflow best practices, management and technologies, printing quality, measurement, and consistency. This segment also produces digital packaging artwork files, and pre-media graphics services for print and digital channels, as well as image carriers comprising printing plates and gravure cylinders; and develops digital tools. Its Memorialization segment manufactures and markets a range of memorialization products for use in cemeteries, funeral homes, and crematories. This segment offers cast bronze memorials, flush bronze and granite memorials, upright granite memorials and monuments, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features and statues, caskets, community and family mausoleums, bronze plaques, letters, emblems, vases, lights, and photo ceramics, as well as architectural products to identify or commemorate people, places, events, and accomplishments. The company’s Industrial Technologies segment designs, manufactures, and distributes marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. This segment serves manufacturers, suppliers, and distributors of durable goods and building products; consumer goods manufacturers; and pharmaceutical producers. Matthews International Corporation was founded in 1850 and is based in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:40
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.