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

2.0%

MATW

0.9%

US Commercial Services

1.8%

US Market


1 Year Return

-17.7%

MATW

16.8%

US Commercial Services

7.3%

US Market

Return vs Industry: MATW underperformed the US Commercial Services industry which returned 16.8% over the past year.

Return vs Market: MATW underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

MATWIndustryMarket
7 Day2.0%0.9%1.8%
30 Day4.1%1.8%-0.7%
90 Day5.7%1.6%0.06%
1 Year-16.0%-17.7%21.2%16.8%9.7%7.3%
3 Year-37.7%-40.5%71.7%59.9%46.3%36.9%
5 Year-14.5%-20.0%102.3%82.0%64.5%46.5%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MATW ($35.6) is trading below our estimate of fair value ($80.71)

Significantly Undervalued: MATW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MATW is good value based on its PE Ratio (17.9x) compared to the Commercial Services industry average (25.5x).

PE vs Market: MATW is poor value based on its PE Ratio (17.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MATW is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MATW is good value based on its PB Ratio (1.3x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MATW's forecast earnings growth (23.5% per year) is above the savings rate (2.7%).

Earnings vs Market: MATW's earnings (23.5% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: MATW's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% 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

High 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?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MATW's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: MATW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MATW had negative earnings growth (-35.6%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.4%).


Return on Equity

High ROE: MATW's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: MATW's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: MATW's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Matthews International's financial position?


Financial Position Analysis

Short Term Liabilities: MATW's short term assets ($614.4M) exceeds its short term liabilities ($314.0M)

Long Term Liabilities: MATW's short term assets (614.4M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: MATW's debt to equity ratio (115.5%) is considered high

Reducing Debt: MATW's debt to equity ratio has increased from 63.4% to 115.5% over the past 5 years.

Debt Coverage: MATW's debt is not well covered by operating cash flow (15.7%).

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


Balance Sheet

Inventory Level: MATW has a low level of unsold assets or inventory.

Debt Coverage by Assets: MATW's 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?

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MATW's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MATW's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 reasonably low payout ratio (40.2%), MATW's dividend payments are 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

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

8.0yrs

Average management tenure


CEO

Joseph Bartolacci (59yo)

13yrs

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

Compensation vs. Market: Joseph's total compensation ($USD6.56M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

8.0yrs

Average Tenure

61yo

Average Age

Experienced Management: MATW's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

62yo

Average Age

Experienced Board: MATW's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

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


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: 5.3yrs
    • Compensation: US$1.42m
  • Steven Nicola (59yo)

    CFO & Corporate Secretary

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

    VP & Controller

    • Tenure: 16.1yrs
  • Brian Dunn (62yo)

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 5.3yrs
    • Compensation: US$1.33m
  • Joseph Bartolacci (59yo)

    CEO, President & Director

    • Tenure: 13yrs
    • Compensation: US$6.56m
  • Paul Rahill (62yo)

    President of Environmental Solutions Division

    • Tenure: 17yrs
    • Compensation: US$593.82k
  • Brian Walters (50yo)

    Senior VP & General Counsel

    • Tenure: 10.7yrs
    • Compensation: US$1.20m
  • Greg Babe (61yo)

    CTO & Director

    • Tenure: 8.9yrs
    • Compensation: US$1.34m
  • Marcy Campbell (56yo)

    Senior Vice President of Human Resources

    • Tenure: 4.9yrs
  • Edward Brady (61yo)

    Chief Information Officer

    • Tenure: 3.8yrs

Board Members

  • John Turner (73yo)

    Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$310.00k
  • Alvaro Garcia-Tunon (67yo)

    Director

    • Tenure: 10yrs
    • Compensation: US$226.50k
  • Morgan O'Brien (59yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$220.00k
  • David Schawk (63yo)

    Group President of SGK Brand Solutions & Director

    • Tenure: 5.3yrs
    • Compensation: US$1.42m
  • Terry Dunlap (60yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$211.50k
  • Wendy Dietze (61yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$220.00k
  • Joseph Bartolacci (59yo)

    CEO, President & Director

    • Tenure: 13yrs
    • Compensation: US$6.56m
  • Don Quigley (63yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$210.00k
  • Jerry Whitaker (68yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$220.00k
  • Greg Babe (61yo)

    CTO & Director

    • Tenure: 8.9yrs
    • 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$1.111b
  • 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 Analysis2019/10/18 23:37
End of Day Share Price2019/10/18 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.