Matthews International Corp (MATW)
NASDAQ:MATW
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Matthews International
(NASDAQ:MATW)
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Rating:57Neutral
Price Target:
$27.00
â–²(8.35% Upside)
Action:ReiteratedDate:03/10/26
The score is held back primarily by weak cash flow (negative TTM operating and free cash flow) and declining revenue, despite improving margins and a healthier leverage profile. Valuation is a clear positive (low P/E and ~3.9% yield), while technicals are broadly neutral and the latest earnings call adds moderate support via FY2026 EBITDA guidance and balance-sheet progress, tempered by segment weakness and cash/timing risks.
Positive Factors
Leverage reduction
Management materially repaired the balance sheet via divestiture proceeds and a $300M note redemption, cutting leverage and expected interest costs. This durable improvement lowers refinancing risk, increases financial flexibility for capex or opportunistic M&A, and supports steadier cash flow over the medium term.
Negative Factors
Negative cash flow
Sustained negative operating and free cash flow increases reliance on asset sales and financing to fund operations and returns. This constrains reinvestment, heightens refinancing and timing risk if divestiture proceeds or Propelis realizations are delayed, and reduces the margin for error in execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage reduction
Management materially repaired the balance sheet via divestiture proceeds and a $300M note redemption, cutting leverage and expected interest costs. This durable improvement lowers refinancing risk, increases financial flexibility for capex or opportunistic M&A, and supports steadier cash flow over the medium term.
Read all positive factors
Matthews International (MATW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$789.98M
Dividend Yield3.87%
Average Volume (3M)221.31K
Price to Earnings (P/E)4.7
Beta (1Y)1.05
Revenue Growth-16.60%
EPS Growth58.86%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-0.19
Shares Outstanding31,126,081
10 Day Avg. Volume256,107
30 Day Avg. Volume221,314
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.56
Price to Sales (P/S)0.50
P/FCF Ratio-12.67
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda5.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.14
Revenue Forecast (FY)$1.13B
Matthews International Business Overview & Revenue Model
Company Description
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 solu...
How the Company Makes Money
Matthews International makes money primarily by selling products and services across its operating segments. In its Memorialization businesses, revenue is generated from manufacturing and selling memorial products (including caskets and cemetery m...
Matthews International Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call highlights a successful balance sheet transformation — notably achieving sub-3x leverage, large accretive divestitures (warehouse automation and Saueressig), substantial pension de-risking and interest savings — and continued strength in the Memorialization business and product innovation (Axian). Offsetting these positives are a substantial YoY revenue decline driven by planned divestitures, a drop in consolidated adjusted EBITDA, a swing to losses in Industrial Technologies, and near-term uncertainty/timing risk in Energy Solutions order flow. Management provided constructive guidance (adjusted EBITDA at least $180M) and tangible paths to further cash realization (Propelis upside, SAP synergies, dividend restore), but several operational and cash timing risks remain.Positive Updates
Balance Sheet Repair — Leverage Target Achieved
Net debt reduced to roughly $500M (outstanding debt $537M; net debt $506M at 12/31/25). Company achieved target to bring leverage below 3x within 12 months following divestitures and debt actions.
Negative Updates
Large YoY Consolidated Revenue Decline
Consolidated sales for Q1 fiscal 2026 were $285M versus $402M a year ago, a decline of ~29% YoY, primarily due to divestitures (SGK and European packaging/tooling), which reduced comparable sales by approximately $120M in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Balance Sheet Repair — Leverage Target Achieved
Net debt reduced to roughly $500M (outstanding debt $537M; net debt $506M at 12/31/25). Company achieved target to bring leverage below 3x within 12 months following divestitures and debt actions.
Read all positive updates
Company Guidance
Matthews guided to at least $180 million of adjusted EBITDA for fiscal 2026 (inclusive of its 40% Propelis interest), noting Q1 revenue of ~$284–285M and adjusted EBITDA of $35.2M (vs. $402M and $40M a year ago); the company has cut net debt to roughly $500M (outstanding debt $537M, net debt $506M) after ~$240M of divestiture cash proceeds (warehouse automation sale $225M — ~15x adjusted EBITDA and ~11x after‑tax, ~$170M net after ~$40M tax; European packaging/tooling proceeds ≈ $30M), executed early redemption of $300M of 8.625% notes to reduce annual interest expense by ~$12M, and reduced pension liabilities to well below $10M from >$300M (previously $125M unfunded). Management highlighted Propelis as a key cash-and-waiting asset — a 40% stake in a business running at an EBITDA run rate materially above the prior $100M expectation, a >$60M synergy target (including ~$20M from an SAP migration), a $50M preferred with 10% PIK (possible principal repayment as soon as Q3) and an anticipated exit in 18–24 months — and reiterated FY items including Energy Solutions revenue of ~$30–35M, CapEx of about $25M, Q1 operating cash use of $52M, expected $5–10M working capital benefit later in the year, a $0.255 quarterly dividend and 206,123 shares repurchased at an average $25.04 (with cash EBITDA ex‑Propelis implied near $130M).Matthews International Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
54
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.50B | 1.80B | 1.88B | 1.76B | 1.67B |
| Gross Profit | 469.95M | 487.52M | 531.88M | 547.80M | 477.79M | 474.90M |
| EBITDA | 227.64M | 147.20M | 77.14M | 187.83M | 24.43M | 165.73M |
| Net Income | 22.63M | -24.47M | -59.66M | 39.29M | -99.83M | 2.91M |
Balance Sheet | ||||||
| Total Assets | 1.55B | 1.69B | 1.83B | 1.89B | 1.88B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 31.36M | 32.43M | 40.82M | 42.10M | 71.41M | 49.18M |
| Total Debt | 586.36M | 764.12M | 839.16M | 864.35M | 872.88M | 846.13M |
| Total Liabilities | 1.01B | 1.21B | 1.40B | 1.36B | 1.40B | 1.40B |
| Stockholders Equity | 543.22M | 480.94M | 437.16M | 525.67M | 487.08M | 636.40M |
Cash Flow | ||||||
| Free Cash Flow | -82.08M | -59.37M | 34.06M | 28.93M | 65.54M | 128.50M |
| Operating Cash Flow | -50.53M | -23.55M | 79.28M | 79.52M | 126.86M | 162.81M |
| Investing Cash Flow | 395.60M | 159.59M | -46.97M | -58.73M | -80.85M | -12.99M |
| Financing Cash Flow | -349.34M | -144.27M | -35.04M | -50.20M | -37.21M | -122.85M |
Matthews International Technical Analysis
Positive
24.92
Price Trends
25.83
Negative
25.71
Negative
24.58
Positive
Market Momentum
-0.15
Negative
49.65
Neutral
71.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATW, the sentiment is Positive. The current price of 24.92 is below the 20-day moving average (MA) of 25.14, below the 50-day MA of 25.83, and above the 200-day MA of 24.58, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 71.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATW.
Matthews International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.66B | 8.64 | 10.05% | 0.21% | 10.31% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.09B | 173.56 | 257.49% | ― | 28.46% | -105.62% | |
57 Neutral | $789.98M | 4.71 | 4.65% | 3.87% | -16.60% | 58.86% | |
57 Neutral | $4.36B | 20.95 | 6.94% | 2.76% | -57.80% | -57.40% | |
56 Neutral | $646.28M | -1.57 | -40.36% | 20.53% | -15.85% | -59.42% | |
52 Neutral | $595.54M | -1.54 | -13.99% | 1.90% | 32.39% | -19.35% |
* Industrials Sector Average
MATW
Matthews International
25.38
6.33
33.26%
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8.59
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-47.07%
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21.32
6.10
40.04%
SEB
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5,906.78
3,382.72
134.02%
FBYD
Falcon's Beyond Global
11.28
3.57
46.30%
FIP
FTAI Infrastructure Incorporation
5.04
1.44
39.96%
Matthews International Corporate Events
Business Operations and StrategyLegal Proceedings
Matthews International Secures Favorable Ruling on Battery Technology
Positive
Mar 10, 2026
On March 10, 2026, Matthews International Corporation reported that an arbitrator’s interim decision on February 13, 2026 reaffirmed the company’s right to develop, produce, market, and sell its proprietary dry battery electrode soluti...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Matthews International Shareholders Approve Governance Overhaul, New Chair
Positive
Feb 19, 2026
At its February 19, 2026 annual meeting, Matthews International shareholders approved a comprehensive overhaul of the company’s Articles of Incorporation, including declassifying the board by 2028, adopting a majority-of-votes-cast standard ...
Business Operations and StrategyPrivate Placements and Financing
Matthews International Amends Loan Agreement, Extends Term Debt
Neutral
Feb 17, 2026
On February 11, 2026, Matthews International Corporation amended its Third Amended and Restated Loan and Security Agreement, reducing the revolving credit facility limit to $700 million from $750 million and introducing additional mandatory reduct...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Matthews International posts strong Q1 results, streamlining operations
Positive
Feb 4, 2026
On February 3, 2026, Matthews International reported strong results for its first quarter of fiscal 2026, posting GAAP earnings per share of $1.39 versus a loss a year earlier, driven by higher sales and improved margins in its Memorialization seg...
Business Operations and StrategyDividends
Matthews International Declares Quarterly Dividend, Signals Stability
Positive
Jan 29, 2026
On January 28, 2026, Matthews International Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.255 per share on its common stock, payable on February 23, 2026, to shareholders of record as of February 9, 202...
Business Operations and StrategyShareholder Meetings
Matthews International Reaches Standstill Agreement With Activist Investor
Positive
Jan 15, 2026
On January 15, 2026, Matthews International Corporation announced an agreement with activist investor Barington Capital and its affiliates under which Barington will withdraw its director nominations for the company’s 2026 annual meeting, en...
Business Operations and Strategy
Matthews International to Redeem Senior Secured Notes
Positive
Jan 12, 2026
On January 12, 2026, Matthews International Corporation announced that it had issued a notice of redemption for all of its outstanding 8.625% Senior Secured Second Lien Notes due 2027, totaling $300 million in aggregate principal amount. The compa...
Business Operations and StrategyM&A Transactions
Matthews International divests European packaging unit to streamline
Positive
Jan 7, 2026
On January 7, 2026, Matthews International Corporation announced it had closed the sale of its European roto-gravure packaging and tooling businesses for total consideration of $41 million, comprising $22 million in cash, $12 million of assumed de...
Business Operations and StrategyM&A Transactions
Matthews International Sells Warehouse Automation Business to Duravant
Positive
Dec 31, 2025
On December 31, 2025, Matthews International Corporation completed the divestiture of its Warehouse Automation business, including interests in Matthews Automation Solutions, LLC and certain related assets, to Duravant LLC for total consideration ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.