Matthews International (MATW) AI Stock Analysis

• Market Cap: $714.44M
• Dividend Yield: 4.34%
• Average Volume (3M): 276.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -9.04%
• EPS Growth: -339.31%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Conglomerates
• EPS (TTM): 0.34
• Shares Outstanding: 31,008,623
• 10 Day Avg. Volume: 247,936
• 30 Day Avg. Volume: 276,457
• PEG Ratio: <0.01
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 3.75
• 1Y Price Target: $40.00
• Price Target Upside: 76.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $23.50 ▲(3.66%Upside)

Matthews International's stock score is influenced by significant financial challenges, including negative profitability and high leverage. While technical indicators show some positive momentum, valuation issues persist with a negative P/E ratio. The earnings call provided a balanced view of strategic efforts and revenue challenges. The company's high dividend yield offers some appeal amidst the difficulties.

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 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. The Memorialization segment provides bronze and granite memorials, upright granite memorials and monuments, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features, and statues, as well as caskets, and cremation and incineration equipment for the cemetery and funeral home industries. The Industrial Technologies segment provides marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products for the warehousing and industrial industries. Matthews International Corporation was founded in 1850 and is based in Pittsburgh, Pennsylvania.

How the Company Makes Money

Matthews International generates revenue through its diversified portfolio across three main segments. The SGK Brand Solutions segment earns money by providing comprehensive brand management services, including design, digital innovation, and packaging solutions to consumer goods companies. The Memorialization segment derives income from the sale of cemetery and funeral home products, such as bronze and granite memorials, caskets, and cremation equipment. The Industrial Technologies segment contributes to revenue by offering marking and coding solutions, along with automation technologies for supply chain and warehouse management. Key revenue streams include contracts with consumer brands, partnerships with funeral service providers, and sales of industrial technology solutions to manufacturers and logistics companies. The company benefits from a combination of long-term client relationships and a broad geographic presence, which supports sustained earnings.

Matthews International Financial Statement Overview

Summary

Matthews International is facing significant profitability and cash flow challenges, with negative EBIT and net income. Despite some equity strength, high leverage and declining cash flow underscore the need for strategic improvements.

Income Statement

Matthews International's income statement reveals notable challenges. The TTM data shows negative EBIT and net income, indicating struggles with profitability. Margins have deteriorated over time, with a gross profit margin of 30.5% and a net profit margin of -4.6% for the TTM. Revenue has also decreased by 5.1% compared to the previous year, highlighting a contraction in business activities.

Balance Sheet

The balance sheet presents a mixed picture. The company carries a high debt-to-equity ratio of 2.0, indicating significant leverage, which could pose risks in financial stability. However, the equity ratio of 22.3% suggests that a moderate portion of assets is financed by equity. Return on equity is negative, reflecting the company's ongoing profitability challenges.

Cash Flow

Cash flow analysis shows declining free cash flow, with a negative growth rate of -118.4% compared to the previous year. The operating cash flow to net income ratio of 0.31 indicates some operational cash generation but is insufficient to cover net losses. The cash flow situation requires close monitoring as operational challenges persist.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.70B	1.80B	1.88B	1.76B	1.67B	1.50B
	Gross Profit
518.98M	529.71M	577.67M	522.28M	541.83M	497.77M
	EBIT
-31.46M	-12.32M	88.12M	120.97M	42.03M	26.21M
	EBITDA
55.92M	77.14M	195.21M	24.43M	169.71M	46.09M
	Net Income Common Stockholders
-78.77M	-59.66M	39.29M	-99.83M	2.91M	-87.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.25M	40.82M	42.10M	69.02M	49.18M	41.33M
	Total Assets
1.83B	1.83B	1.89B	1.88B	2.03B	2.07B
	Total Debt
874.01M	839.16M	864.35M	798.57M	763.71M	834.53M
	Net Debt
833.76M	798.34M	822.25M	729.55M	714.53M	793.20M
	Total Liabilities
1.42B	1.40B	1.36B	1.40B	1.40B	1.46B
	Stockholders Equity
408.19M	437.16M	525.67M	487.08M	636.40M	611.43M
Cash Flow		Free Cash Flow
-6.29M	34.06M	28.93M	65.54M	128.50M	145.60M
	Operating Cash Flow
24.43M	79.28M	79.52M	126.86M	162.81M	180.45M
	Investing Cash Flow
-15.77M	-46.97M	-58.73M	-80.85M	-12.99M	-2.72M
	Financing Cash Flow
-19.62M	-35.04M	-50.20M	-37.21M	-122.85M	-172.25M

Matthews International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 22.67 is above the 20-day moving average (MA) of 21.55, above the 50-day MA of 20.64, and below the 200-day MA of 23.84, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATW.

Matthews International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDU	68 Neutral	$3.42B	13.09	9.63%	3.10%	-25.50%	-45.13%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
SPLP	63 Neutral	$766.02M	3.71	24.14%	―	5.83%	72.33%
FIP	58 Neutral	$702.34M	―	-6.42%	1.96%	5.70%	36.39%
SEB	54 Neutral	$2.65B	27.01	2.09%	0.33%	-0.31%	-58.07%
MATW	52 Neutral	$714.44M	―	-17.17%	4.34%	-9.04%	-339.31%
CODI	48 Neutral	$475.49M	―	-4.98%	15.82%	6.77%	9.95%

Matthews International Corporate Events

Matthews International Completes SGK Brand Solutions Sale

On May 1, 2025, Matthews International Corporation completed the sale of its SGK Brand Solutions division to a joint venture with SGS & Co, receiving $350 million in consideration, including cash and equity. This transaction is expected to enhance Matthews’ financial flexibility and strategic focus, while the new entity, led by Gary R. Kohl, aims to achieve significant cost synergies and growth opportunities, benefiting Matthews’ minority stake.

Matthews International Announces Quarterly Dividend Payment

On April 30, 2025, Matthews International Corporation announced a quarterly dividend of $0.25 per share on its common stock, payable on May 26, 2025, to stockholders of record as of May 12, 2025.

Matthews International Awaits SGK Transaction Closure

Matthews International reported its fiscal 2025 second-quarter financial results, highlighting consolidated sales of $427.6 million, a decrease from the previous year. The company faced challenges in its engineering business but saw a resurgence in demand for energy storage solutions. The SGK transaction is expected to close in early May 2025, with Matthews receiving $350 million upfront and a 40% interest in the new entity. This transaction is anticipated to significantly reduce the company’s debt and potentially lead to stock repurchases. Despite a net loss of $8.9 million for the quarter, Matthews remains focused on strategic alternatives to unlock shareholder value.