NasdaqGS:MATW

Stock Analysis Report

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Market Cap

US$1.1b

Last Updated

2021/08/03 23:37 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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 is not significantly more volatile than the rest 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.


Market Performance


7 Day Return

1.2%

MATW

0.8%

US Commercial Services

-0.4%

US Market


1 Year Return

57.8%

MATW

31.2%

US Commercial Services

34.4%

US Market

Return vs Industry: MATW exceeded the US Commercial Services industry which returned 31.2% over the past year.

Return vs Market: MATW exceeded the US Market which returned 34.4% over the past year.


Shareholder returns

MATWIndustryMarket
7 Day1.2%0.8%-0.4%
30 Day-2.7%3.1%-0.4%
90 Day-18.3%5.0%4.0%
1 Year60.8%57.8%32.7%31.2%36.5%34.4%
3 Year-29.5%-34.2%52.9%43.2%62.0%51.9%
5 Year-38.0%-43.6%127.6%105.8%121.8%97.2%

Long-Term 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?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MATW ($34.07) is trading below our estimate of fair value ($58.59)

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


Price To Earnings Ratio

PE vs Industry: MATW is poor value based on its PE Ratio (76.9x) compared to the US Commercial Services industry average (34.8x).

PE vs Market: MATW is poor value based on its PE Ratio (76.9x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: MATW is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MATW is good value based on its PB Ratio (1.7x) compared to the US Commercial Services industry average (2.6x).


Future Growth

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

61.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MATW's forecast earnings growth (61.3% per year) is above the savings rate (2%).

Earnings vs Market: MATW's earnings (61.3% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MATW's revenue (1.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MATW's revenue (1.3% 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?

-46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MATW has a large one-off loss of $55.8M impacting its June 30 2021 financial results.

Growing Profit Margin: MATW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MATW's earnings have declined by 46.5% per year over the past 5 years.

Accelerating Growth: MATW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MATW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (11.3%).


Return on Equity

High ROE: MATW's Return on Equity (2.2%) is considered low.


Financial Health

How is Matthews International's financial position?


Financial Position Analysis

Short Term Liabilities: MATW's short term assets ($620.7M) exceed its short term liabilities ($329.5M).

Long Term Liabilities: MATW's short term assets ($620.7M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MATW's debt to equity ratio (125.4%) is considered high.

Reducing Debt: MATW's debt to equity ratio has reduced from 133.3% to 125.4% over the past 5 years.

Debt Coverage: MATW's debt is well covered by operating cash flow (20.8%).

Interest Coverage: MATW's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

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

2.52%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 04 2021Ex Dividend DateAug 06 2021Dividend Pay DateAug 23 202117 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MATW's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MATW's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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: With its high payout ratio (194.2%), MATW's dividend payments are not well covered by earnings.


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?

11.2yrs

Average management tenure


CEO

Joseph Bartolacci (61 yo)

14.83yrs

Tenure

US$6,577,867

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 ($USD6.58M) is above average for companies of similar size in the US market ($USD2.42M).

Compensation vs Earnings: Joseph's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MATW's management team is seasoned and experienced (11.2 years average tenure).


Board Members

Experienced Board: MATW's board of directors are seasoned and experienced ( 10.1 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.


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$1.077b
  • Shares outstanding: 31.61m
  • Website: https://www.matw.com

Number of Employees


Location

  • Matthews International Corporation
  • Two NorthShore Center
  • Pittsburgh
  • Pennsylvania
  • 15212-5851
  • United States

Listings


Biography

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. The company’s SGK Brand Solutions segment offers brand management and pre-media...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:37
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.