NasdaqGS:MATW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

MATW

-1.9%

US Commercial Services

-0.8%

US Market


1 Year Return

-36.9%

MATW

7.8%

US Commercial Services

18.0%

US Market

Return vs Industry: MATW underperformed the US Commercial Services industry which returned 6.9% over the past year.

Return vs Market: MATW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MATWIndustryMarket
7 Day2.1%-1.9%-0.8%
30 Day10.7%5.2%6.8%
90 Day21.9%10.9%8.9%
1 Year-34.9%-36.9%9.5%7.8%20.7%18.0%
3 Year-59.9%-62.5%50.5%40.9%41.5%32.1%
5 Year-55.0%-58.7%113.4%91.5%84.6%63.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MATW ($23.85) is trading below our estimate of fair value ($55.63)

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 (1.2x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

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

110.2%

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 (2.2%).

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 (0.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MATW's revenue (0.7% 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


Next Steps

Past Performance

How has Matthews International performed over the past 5 years?

-35.2%

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 35.2% 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 (-9.7%).


Return on Equity

High ROE: MATW has a negative Return on Equity (-27.68%), 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 ($569.7M) exceed its short term liabilities ($305.0M).

Long Term Liabilities: MATW's short term assets ($569.7M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: MATW's debt to equity ratio (142.6%) is considered high.

Reducing Debt: MATW's debt to equity ratio has increased from 92.5% to 142.6% over the past 5 years.

Debt Coverage: MATW's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: MATW is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MATW's dividend (3.52%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MATW's dividend (3.52%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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?

11.7yrs

Average management tenure


CEO

Joseph Bartolacci (60 yo)

14yrs

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 ($USD6.92M) is above average for companies of similar size in the US market ($USD2.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Bartolacci
CEO, President & Director14yrsUS$6.92m1.08%
$ 8.1m
Steven Nicola
CFO & Corporate Secretary16.83yrsUS$3.05m0.45%
$ 3.3m
Brian Walters
Senior VP & General Counsel11.67yrsUS$1.20m0.12%
$ 888.4k
Brian Dunn
Executive Vice President of Strategy & Corporate Development6.25yrsUS$1.72m0.17%
$ 1.3m
Steven Gackenbach
Group President of Memorialization9yrsUS$1.24m0.28%
$ 2.1m
Gregory Babe
CTO & Director9.92yrsUS$1.34m0.11%
$ 856.2k
Davor Brkovich
Chief Information Officerno datano data0.0059%
$ 43.6k
William Wilson
Senior Director of Corporate Development & Investor Relationsno datano datano data
Marcy Campbell
Senior Vice President of Human Resources5.92yrsno data0.049%
$ 364.2k
Edward Brady
Head of Global Business Servicesno datano data0.029%
$ 212.7k
David Beck
VP & Controller17.08yrsno datano data
C. Dempe
President of IDL Worldwide33.75yrsno datano data

11.7yrs

Average Tenure

60.5yo

Average Age

Experienced Management: MATW's management team is seasoned and experienced (11.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Bartolacci
CEO, President & Director14yrsUS$6.92m1.08%
$ 8.1m
Gregory Babe
CTO & Director9.92yrsUS$1.34m0.11%
$ 856.2k
John Turner
Independent Chairman of the Board10.67yrsUS$310.00k0.10%
$ 774.6k
Alvaro Garcia-Tunon
Independent Director11yrsUS$225.00k0.087%
$ 650.1k
Morgan O'Brien
Independent Director9.25yrsUS$220.00k0.053%
$ 397.6k
David Schawk
Director6.25yrsUS$1.42m0.90%
$ 6.7m
Terry Dunlap
Independent Director5.67yrsUS$210.00k0.028%
$ 208.2k
Katherine Dietze
Independent Director12.25yrsUS$220.00k0.078%
$ 583.8k
Don Quigley
Independent Director5.08yrsUS$210.00k0.021%
$ 153.5k
Jerry Whitaker
Independent Director9.25yrsUS$220.00k0.043%
$ 318.0k
Lillian Etzkorn
Directorno datano datano data

9.6yrs

Average Tenure

62yo

Average Age

Experienced Board: MATW's board of directors are considered experienced (9.6 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$745.668m
  • Shares outstanding: 31.26m
  • 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 Analysis2020/10/23 00:28
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.