Matthews International (MATW) AI Stock Analysis

• Market Cap: $864.89M
• Dividend Yield: 3.87%
• Average Volume (3M): 242.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -16.60%
• EPS Growth: 58.86%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.50
• Shares Outstanding: 31,088,732
• 10 Day Avg. Volume: 163,925
• 30 Day Avg. Volume: 242,273
• PEG Ratio: 0.52
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -12.67
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 9.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $1.19B

• Rating: 55 Neutral
• Price Target: $29.00 ▲(16.37% Upside)

The score is held back primarily by weak financial performance (declining revenue, net losses, negative operating cash flow, and high leverage). Offsetting this, technicals are relatively strong with an uptrend across key moving averages and positive MACD, while guidance and recent balance-sheet/strategic actions improve the outlook. Valuation remains constrained by loss-driven negative P/E despite a supportive dividend yield.

Positive Factors

Balance-sheet deleveraging

The sizable $225–232M sale materially reduces gross debt and is earmarked for immediate debt paydown, improving leverage metrics. Lower leverage enhances financial flexibility, reduces interest expense, and gives the company more runway for organic investment and strategic execution over the next 2–6 months.

Memorialization segment strength

Acquisitions like Dodge boosted Memorialization sales and adjusted EBITDA, demonstrating consolidation-led scale. Memorial products tend to have steady, structural demand and recurring service opportunities, providing a durable cash-flow base that supports margins and dividend capacity over a multi-quarter horizon.

Product innovation (Axian printhead)

GS1-certified Axian printhead provides a differentiated technology advantage in high-speed 2D coding, strengthening Brand Solutions' competitive moat. Certification and unique capability can drive durable share gains in a >$2B market, supporting higher-margin, recurring OEM and replacement revenue streams.

Negative Factors

High leverage

Significant leverage and negative ROE raise solvency and flexibility concerns, constraining capital allocation and increasing refinancing risk. Reliance on asset sales to reach leverage targets introduces execution risk; persistent high leverage could impair investment in growth or necessitate further disposals.

Operating cash flow weakness

Negative operating cash flow signals that core operations are not generating sufficient cash, forcing reliance on asset sales or financing. Even with some free cash flow improvement, sustained negative operating cash flow can undermine liquidity over several quarters and pressure the firm's ability to fund capex, dividends, or debt reduction.

Ongoing litigation risk

Protracted litigation over key battery electrode IP creates material execution and commercialization risk for Industrial Technologies. Legal uncertainty can delay market entry, deter partners, incur sizable legal costs, and restrict revenue from a promising technology area over the medium term.

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 multiple key streams. The Memorialization segment earns income primarily from the sales of memorial products and services, driven by demand for burial and cremation services. The Industrial Technologies segment generates revenue through the sale of metal and plastic products, servicing a diverse range of industries, including automotive and consumer goods. The Brand Solutions segment provides revenue from the production and sale of custom packaging and identification solutions, which are critical for brand marketing. Additionally, the company may engage in partnerships with various industries to expand its product offerings and market reach, further contributing to its earnings.

Matthews International Financial Statement Overview

Summary

Weak fundamentals: declining revenue, negative net income and negative operating cash flow. Leverage remains high (riskier balance sheet), partially offset by slight EBIT/EBITDA margin improvement and some free-cash-flow growth.

Income Statement

Matthews International's income statement reveals a challenging financial period with declining revenue and negative net income. The gross profit margin has shown some resilience, but the net profit margin remains negative, indicating ongoing profitability issues. The revenue growth rate has been negative, reflecting a contraction in sales. Despite these challenges, the EBIT and EBITDA margins have improved slightly, suggesting some operational efficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's struggles to generate profit from shareholders' equity. However, the equity ratio is stable, suggesting a balanced asset structure. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis indicates negative operating cash flow, which is concerning for liquidity. However, the free cash flow has shown growth, which is a positive sign. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, indicating that despite net losses, the company is generating some cash flow.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.50B	―	1.50B	1.80B	1.88B	1.76B
Gross Profit	491.42M	―	487.52M	531.88M	547.80M	477.79M
EBITDA	150.25M	―	147.20M	77.14M	187.83M	24.43M
Net Income	-24.47M	―	-24.47M	-59.66M	39.29M	-99.83M
Balance Sheet
Total Assets	1.69B	―	1.69B	1.83B	1.89B	1.88B
Cash, Cash Equivalents and Short-Term Investments	32.43M	―	32.43M	40.82M	42.10M	71.41M
Total Debt	710.83M	―	710.83M	839.16M	864.35M	872.88M
Total Liabilities	1.21B	―	1.21B	1.40B	1.36B	1.40B
Stockholders Equity	480.94M	―	480.94M	437.16M	525.67M	487.08M
Cash Flow
Free Cash Flow	-59.37M	―	-59.37M	34.06M	28.93M	65.54M
Operating Cash Flow	-23.55M	―	-23.55M	79.28M	79.52M	126.86M
Investing Cash Flow	159.59M	―	159.59M	-46.97M	-58.73M	-80.85M
Financing Cash Flow	-144.27M	―	-144.27M	-35.04M	-50.20M	-37.21M

Matthews International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 26.98, below the 50-day MA of 25.59, and above the 200-day MA of 23.27, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEB	73 Outperform	$4.50B	11.45	8.36%	0.21%	10.31%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MDU	57 Neutral	$4.15B	24.62	6.42%	2.76%	-57.80%	-57.40%
MATW	55 Neutral	$864.89M	-35.87	-5.33%	3.87%	-16.60%	58.86%
FIP	48 Neutral	$630.32M	-2.32	-13.99%	1.90%	32.39%	-19.35%
CODI	45 Neutral	$405.52M	-0.98	-41.05%	20.53%	-15.85%	-59.42%
FBYD	42 Neutral	$472.64M	-63.70	28.00%	―	28.46%	-105.62%

Matthews International Corporate Events

Matthews International Reaches Standstill Agreement With Activist Investor

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, ending a potential proxy contest after a lengthy period of engagement on strategic review and corporate governance. In exchange, Matthews will reimburse certain fees and expenses incurred by Barington, while Barington has agreed to standstill and voting commitments through the 2028 annual meeting, aligning its voting with the board’s recommendations and accepting restrictions on proxy solicitations, shareholder proposals and director nominations; company leadership framed the deal as a constructive resolution that supports ongoing efforts to simplify Matthews’ business mix, strengthen its balance sheet, enhance governance and drive long-term shareholder value, while Barington signaled confidence that Matthews’ continuing strategic review and value-creation plan can unlock greater near- and long-term returns for investors.

The most recent analyst rating on (MATW) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International to Redeem Senior Secured Notes

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 company will redeem 100% of these notes on January 22, 2026, at a price equal to 104.313% of the principal amount plus accrued and unpaid interest to, but not including, the redemption date, signaling an active step in managing its capital structure and potentially reducing higher-cost secured debt for the benefit of its balance sheet and stakeholders.

The most recent analyst rating on (MATW) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International divests European packaging unit to streamline

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 debt and pension liabilities, and $7 million in seller financing, with $18 million of cash received at closing and the remaining $4 million due within six months. Management characterized the divestiture—of operations that generated roughly $100 million in annual sales but only break-even adjusted EBITDA over the past two fiscal years—as a step toward a more streamlined business structure and an effort to unlock shareholder value, with all cash proceeds earmarked for immediate debt reduction, signaling a continued focus on balance sheet strengthening and portfolio reshaping for stakeholders.

The most recent analyst rating on (MATW) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Sells Warehouse Automation Business to Duravant

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 of about $232 million, comprising $225.4 million in cash and the buyer’s assumption of certain liabilities. The business, which generated $72 million in sales in fiscal 2025, was sold at what management characterized as a compelling valuation multiple, and Matthews plans to use the after-tax, post-cost proceeds to materially reduce outstanding debt, advancing its goal of a 2.5x net leverage ratio, while its broader strategic review to enhance shareholder value remains ongoing.

The most recent analyst rating on (MATW) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Reports Q4 2025 Financial Results

On November 20, 2025, Matthews International Corporation announced its financial results for the fourth quarter and fiscal year ending September 30, 2025. The company reported consolidated sales of $318.8 million for the fourth quarter and $1.50 billion for the fiscal year. The Memorialization segment saw increased sales due to the acquisition of The Dodge Company and higher sales volumes for bronze memorials. The Industrial Technologies segment faced challenges due to litigation with Tesla, but interest in dry battery electrode solutions remains strong. The company also highlighted the successful performance of Propelis, a joint venture formed from the SGK business divestiture. Matthews plans to reduce its net leverage ratio below 3.0x with the sale of its warehouse automation business and aims for an adjusted EBITDA of at least $180 million for fiscal 2026.

The most recent analyst rating on (MATW) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Increases Quarterly Dividends Again

On November 19, 2025, Matthews International Corporation announced its 32nd consecutive increase in quarterly dividends, now set at $0.255 per share, payable on December 15, 2025. This decision reflects the company’s robust cash flow, particularly from its Memorialization segment, and the anticipated proceeds from the sale of its warehouse automation business, underscoring its commitment to long-term growth and operational efficiency.

The most recent analyst rating on (MATW) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Appoints New Chairman of the Board

On November 19, 2025, Matthews International Corporation announced the election of J. Michael Nauman as the new Chairman of the Board of Directors, succeeding Alvaro Garcia-Tunon after the 2026 Annual Meeting of Shareholders. Nauman, who brings over 35 years of expertise in specialty products and technical fields, is expected to lead Matthews through a transformative period, focusing on sustainable growth and long-term value creation.

The most recent analyst rating on (MATW) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Sells Warehouse Automation Business

On November 12, 2025, Matthews International Corporation announced the sale of its Warehouse Automation business to Duravant LLC for approximately $230 million. This transaction, part of Matthews’ strategic alternatives evaluation, aims to reduce debt and enhance shareholder value. The sale is expected to close by the second quarter of fiscal 2026, pending regulatory approval.

The most recent analyst rating on (MATW) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.