Matthews International (NasdaqGS:MATW) - Share price, News & Analysis

MATW fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	0/6
Financial Health	2/6
Dividends	4/6

MATW Stock Overview

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

Rewards

Trading at 58.5% below our estimate of its fair value

Earnings are forecast to grow 193.22% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 2.85% is not well covered by earnings

Matthews International Competitors

Service Corporation International

NYSE:SCI

US$10.9b

Hillenbrand

NYSE:HI

US$2.9b

Park Lawn

TSX:PLC

CA$1.1b

Carriage Services

NYSE:CSV

US$576.4m

Price History & Performance

Summary of all time highs, changes and price drops for Matthews International
Historical stock prices
Current Share Price	US$30.87
52 Week High	US$39.76
52 Week Low	US$29.00
Beta	1.08
1 Month Change	-2.71%
3 Month Change	-7.13%
1 Year Change	-21.13%
3 Year Change	-11.42%
5 Year Change	-51.65%
Change since IPO	751.59%

Recent News & Updates

Apr 12

Matthews International (NASDAQ:MATW) Could Be Struggling To Allocate Capital

If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...

Shareholder Returns

	MATW	US Commercial Services	US Market
7D	0.9%	-0.4%	-0.5%
1Y	-21.1%	-5.3%	-12.3%

Return vs Industry: MATW underperformed the US Commercial Services industry which returned -5.6% over the past year.

Return vs Market: MATW underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is MATW's price volatile compared to industry and market?
MATW volatility
MATW Average Weekly Movement	4.2%
Commercial Services Industry Average Movement	7.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MATW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MATW's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1850	11,000	Joe Bartolacci	https://www.matw.com

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. It operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. The SGK Brand solutions segment provides brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services for the consumer goods and retail industries.

Matthews International Fundamentals Summary

How do Matthews International's earnings and revenue compare to its market cap?
MATW fundamental statistics
Market Cap	US$966.42m
Earnings (TTM)	-US$22.03m
Revenue (TTM)	US$1.75b

0.6x

P/S Ratio

-43.9x

P/E Ratio

Is MATW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MATW income statement (TTM)
Revenue	US$1.75b
Cost of Revenue	US$1.20b
Gross Profit	US$554.17m
Other Expenses	US$576.19m
Earnings	-US$22.03m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.70
Gross Margin	31.65%
Net Profit Margin	-1.26%
Debt/Equity Ratio	118.6%

How did MATW perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

-63%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MATW ($30.87) is trading below our estimate of fair value ($74.39)

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 US 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 (1.5x) compared to the US Commercial Services industry average (1.8x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

193.2%

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 (1.9%).

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 (1.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: MATW's revenue (1.5% per year) is forecast to grow slower than 20% 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

Past Performance

How has Matthews International performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-47.4%

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 47.4% 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 (30.2%).

Return on Equity

High ROE: MATW has a negative Return on Equity (-3.51%), as it is currently unprofitable.

Financial Health

How is Matthews International's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MATW's short term assets ($612.3M) exceed its short term liabilities ($338.6M).

Long Term Liabilities: MATW's short term assets ($612.3M) do not cover its long term liabilities ($985.2M).

Debt to Equity History and Analysis

Debt Level: MATW's net debt to equity ratio (109.8%) is considered high.

Reducing Debt: MATW's debt to equity ratio has reduced from 134.4% to 118.6% over the past 5 years.

Debt Coverage: MATW's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: MATW's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MATW's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: MATW's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.5%), MATW's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

10.6yrs

Average management tenure

CEO

Joe Bartolacci (61 yo)

16.67yrs

Tenure

US$6,813,304

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.81M) is above average for companies of similar size in the US market ($USD3.94M).

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

Leadership Team

Experienced Management: MATW's management team is seasoned and experienced (10.6 years average tenure).

Board Members

Experienced Board: MATW's board of directors are seasoned and experienced ( 10.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30