NasdaqGS:MATW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued average dividend payer.


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


Market Performance


7 Day Return

9.4%

NasdaqGS:MATW

1.0%

US Commercial Services

0.8%

US Market


1 Year Return

-28.6%

NasdaqGS:MATW

4.7%

US Commercial Services

1.9%

US Market

MATW underperformed the Commercial Services industry which returned 4.1% over the past year.

MATW underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

MATWIndustryMarket
7 Day9.4%1.0%0.8%
30 Day19.1%0.3%3.4%
90 Day5.2%-0.04%2.1%
1 Year-27.1%-28.6%8.6%4.7%4.2%1.9%
3 Year-35.4%-38.3%67.3%55.9%46.7%37.2%
5 Year-11.6%-17.3%102.1%81.9%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Matthews International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Matthews International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Matthews International is good value based on earnings compared to the US Commercial Services industry average.

Matthews International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Matthews International is good value based on expected growth next year.


Price Based on Value of Assets

Matthews International is good value based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is Matthews International expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Matthews International's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

Matthews International's earnings are expected to grow significantly at over 20% yearly.

Matthews International's revenue growth is positive but not above the United States of America market average.

Matthews International's earnings growth is expected to exceed the United States of America market average.

Matthews International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Matthews International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Matthews International performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Matthews International's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Matthews International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Matthews International's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

Matthews International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Matthews International used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Matthews International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Matthews International's financial position?


Financial Position Analysis

Matthews International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Matthews International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Matthews International's level of debt (115.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (63.4% vs 115.5% today).

Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield and Payments Analysis

Matthews International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Matthews International's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Matthews International's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

Joseph Bartolacci (59yo)

12.9yrs

Tenure

US$6,564,838

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

Joseph's remuneration is higher than average for companies of similar size in United States of America.

Joseph's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.9yrs

Average Tenure

61yo

Average Age

The average tenure for the Matthews International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.5yrs

Average Tenure

62yo

Average Age

The tenure for the Matthews International board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$40,93021 Nov 18
David Schawk
EntityIndividual
Role
Member of the Board of Directors
Group President of SGK Brand Solutions & Director
Shares1,000
Max PriceUS$40.93

Ownership Breakdown


Management Team

  • David Schawk (63yo)

    Group President of SGK Brand Solutions & Director

    • Tenure: 5.2yrs
    • Compensation: US$1.42m
  • Steven Nicola (59yo)

    CFO & Corporate Secretary

    • Tenure: 15.8yrs
    • Compensation: US$2.50m
  • David Beck (67yo)

    VP & Controller

    • Tenure: 16yrs
  • Brian Dunn (62yo)

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 5.2yrs
    • Compensation: US$1.33m
  • Joseph Bartolacci (59yo)

    CEO, President & Director

    • Tenure: 12.9yrs
    • Compensation: US$6.56m
  • Paul Rahill (62yo)

    President of Environmental Solutions Division

    • Tenure: 16.9yrs
    • Compensation: US$593.82k
  • Brian Walters (50yo)

    Senior VP & General Counsel

    • Tenure: 10.6yrs
    • Compensation: US$1.20m
  • Greg Babe (61yo)

    CTO & Director

    • Tenure: 8.8yrs
    • Compensation: US$1.34m
  • Marcy Campbell (56yo)

    Senior Vice President of Human Resources

    • Tenure: 4.8yrs
  • Edward Brady (61yo)

    Chief Information Officer

    • Tenure: 3.7yrs

Board Members

  • John Turner (73yo)

    Chairman of the Board

    • Tenure: 9.6yrs
    • Compensation: US$310.00k
  • Alvaro Garcia-Tunon (67yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$226.50k
  • Morgan O'Brien (59yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$220.00k
  • David Schawk (63yo)

    Group President of SGK Brand Solutions & Director

    • Tenure: 5.2yrs
    • Compensation: US$1.42m
  • Terry Dunlap (60yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$211.50k
  • Wendy Dietze (61yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$220.00k
  • Joseph Bartolacci (59yo)

    CEO, President & Director

    • Tenure: 12.9yrs
    • Compensation: US$6.56m
  • Don Quigley (63yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$210.00k
  • Jerry Whitaker (68yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$220.00k
  • Greg Babe (61yo)

    CTO & Director

    • Tenure: 8.8yrs
    • Compensation: US$1.34m

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$1.164b
  • Shares outstanding: 31.49m
  • 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 de ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:46
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.