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Matthews International (MATW)
NASDAQ:MATW
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Matthews International
(NASDAQ:MATW)
Rating:53Neutral
Price Target:
$25.00
▲(2.63% Upside)
Matthews International (MATW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$766.69M
Dividend Yield4.01%
Average Volume (3M)202.51K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-11.13%
EPS Growth-351.71%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength73
IndustryConglomerates
Share Statistics
EPS (TTM)0.28
Shares Outstanding30,790,907
10 Day Avg. Volume182,756
30 Day Avg. Volume202,515
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.94
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit2.92
Enterprise Value/Ebitda12.77
Forecast
1Y Price Target
$40.00Price Target Upside64.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Matthews International Business Overview & Revenue Model
Company DescriptionMatthews 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 MoneyMatthews International generates revenue through a combination of product sales and services in its two main segments. In the Memorialization segment, revenue is derived from the sale of memorial products, including custom memorials and urns, which are sold through funeral homes, cemeteries, and directly to consumers. The Industrial Technologies segment earns revenue primarily from the sale of marking and coding systems, which are used in various industries such as food and beverage, consumer products, and pharmaceuticals. Additionally, the company benefits from significant partnerships with distributors and manufacturers that enhance its market reach. Moreover, Matthews International invests in innovation to develop new products and improve existing ones, which contributes to its revenue growth. Overall, the company's diverse product offerings and strategic partnerships play a crucial role in its earnings.
Matthews International Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in debt reduction, strategic divestitures, and segment performance improvements. However, it also highlighted challenges in revenue decline due to the divestiture and ongoing legal disputes affecting the energy business. The overall sentiment is neutral with both positive strides and notable challenges.Q3-2025 Updates
Positive Updates
Value Creation Plan and Divestiture Success
Initial benefits from the value creation plan, including a gain from the divestiture of SGK, now Propelis Group, with a reported 40% ownership. Propelis projects an initial annual adjusted EBITDA of $100 million with identified synergies of $60 million, higher than expected.
Debt Reduction and Financial Stability
Outstanding debt was reduced by $120 million during the current quarter, with further reductions expected. This was achieved through proceeds from the SGK divestiture and cost savings initiatives.
Industrial Technologies Segment Performance
Adjusted EBITDA for the segment increased from $4.2 million a year ago to $9 million, primarily due to benefits from cost reduction actions and higher warehouse automation sales.
Memorialization Segment Stability
Reported modest revenue increase driven by the Dodge acquisition and cost savings initiatives, despite lower sales volumes and higher material costs. The segment's adjusted EBITDA increased from $38.7 million to $42.8 million year-over-year.
Launch of New Printhead Technology
The upcoming launch of the Axiom product, featuring a patented silicon-based print engine, presents a significant opportunity in the approximately $2 billion market for fast-moving consumer goods.
Negative Updates
Revenue Decline Due to SGK Divestiture
Consolidated sales decreased from $428 million to $349 million year-over-year, primarily due to the divestiture of SGK, which impacted the sales by $80.2 million.
Challenges in Energy Business
Lower sales in the energy business, primarily related to ongoing disputes with Tesla, which have led to reduced demand and sales.
Cash Flow Challenges
Cash flow used in operating activities was $15.2 million for the quarter, compared to cash provided by operating activities of $13.5 million a year ago. This was due to costs related to the SGK transaction, restructuring actions, and legal costs from the Tesla dispute.
Company Guidance
In the Matthews International Third Quarter Fiscal 2025 financial results call, the company provided several key metrics and guidance details. Consolidated sales were reported at $349 million, a decrease from $428 million in the same period of fiscal 2024, primarily due to the divestiture of SGK. The adjusted EBITDA for the quarter remained steady at $44.6 million, despite the divestiture, supported by improvements in the Memorialization and Industrial Technologies segments. The company also highlighted a value creation plan resulting in a year-over-year EBITDA increase of 37% when excluding the divested SGK business. Matthews anticipates achieving at least $190 million in adjusted EBITDA for the entire fiscal year 2025, inclusive of their 40% interest in Propelis. They also projected annual adjusted EBITDA of approximately $100 million for Propelis, with synergy capture expected to reach a $40 million run rate by the end of 2026. Additionally, Matthews is progressing with strategic alternatives, expecting to announce conclusions by November, while aiming to reduce corporate costs and debt levels with ongoing divestitures and operational improvements.Matthews International Financial Statement Overview
Summary
Matthews International faces financial challenges with declining revenues, negative profitability, and high leverage. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability and shareholder returns.Income Statement
Matthews International's income statement shows a decline in revenue with a negative revenue growth rate of -4.60% TTM. The company is experiencing negative net profit margins at -4.01% TTM, indicating profitability challenges. Gross profit margin remains moderate at 31.32% TTM, but the negative EBIT and EBITDA margins suggest operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.47 TTM, indicating significant leverage. Return on equity is negative at -14.70% TTM, reflecting poor returns for shareholders. However, the equity ratio stands at 30.12% TTM, providing some stability in asset financing.50
Neutral
Cash Flow
Cash flow analysis shows a concerning decline in free cash flow, with a negative growth rate of 318.16% TTM. The operating cash flow to net income ratio is low at 0.66% TTM, indicating weak cash generation relative to net income. Free cash flow to net income is significantly negative, highlighting cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.63B | 1.80B | 1.88B | 1.76B | 1.67B | 1.50B |
| Gross Profit | 509.10M | 529.71M | 577.67M | 522.28M | 541.83M | 510.17M |
| EBITDA | 116.29M | 77.14M | 187.83M | 24.43M | 165.73M | 47.61M |
| Net Income | -65.16M | -59.66M | 39.29M | -99.83M | 2.91M | -87.16M |
Balance Sheet | ||||||
| Total Assets | 1.71B | 1.83B | 1.89B | 1.88B | 2.03B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 20.38M | 40.82M | 42.10M | 72.37M | 49.18M | 41.33M |
| Total Debt | 753.73M | 839.16M | 864.35M | 872.88M | 846.13M | 907.77M |
| Total Liabilities | 1.19B | 1.40B | 1.36B | 1.40B | 1.40B | 1.46B |
| Stockholders Equity | 513.83M | 437.16M | 525.67M | 487.08M | 636.40M | 611.43M |
Cash Flow | ||||||
| Free Cash Flow | -36.36M | 34.06M | 28.93M | 65.54M | 128.50M | 145.60M |
| Operating Cash Flow | 2.06M | 79.28M | 79.52M | 126.86M | 162.81M | 180.45M |
| Investing Cash Flow | 144.91M | -46.97M | -58.73M | -80.85M | -12.99M | -2.72M |
| Financing Cash Flow | -170.39M | -35.04M | -50.20M | -37.21M | -122.85M | -172.25M |
Matthews International Technical Analysis
Positive
24.36
Price Trends
24.27
Positive
22.49
Positive
24.01
Positive
Market Momentum
0.23
Negative
56.82
Neutral
70.91
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 24.36 is above the 20-day moving average (MA) of 24.25, above the 50-day MA of 24.27, and above the 200-day MA of 24.01, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.81B | 27.69 | 2.92% | 0.23% | 4.70% | -44.60% | |
71 Outperform | $799.54M | 4.20 | 18.71% | ― | 5.04% | 7.61% | |
63 Neutral | $10.73B | 15.32 | 7.39% | 2.01% | 2.86% | -14.57% | |
59 Neutral | $547.72M | ― | -4.98% | 13.83% | 6.77% | 9.95% | |
54 Neutral | $3.29B | 15.31 | 7.98% | 2.87% | -40.60% | -47.10% | |
53 Neutral | $766.69M | ― | -12.81% | 4.01% | -11.13% | -351.71% | |
48 Neutral | $464.95M | ― | -9.32% | 2.23% | 16.07% | 30.39% |
* Industrials Sector Average
Performance Comparison
MATW
Matthews International
24.36
2.28
10.33%
CODI
Compass Diversified Holdings
7.13
-12.37
-63.44%
MDU
Mdu Resources Group
16.06
2.56
18.96%
SEB
Seaboard
3,901.00
816.35
26.46%
SPLP
Steel Partners Holdings
41.55
0.06
0.14%
FIP
FTAI Infrastructure Incorporation
4.00
-4.28
-51.69%
Matthews International Corporate Events
Executive/Board Changes
Matthews International Announces CFO Retirement and Successor
Neutral
Aug 19, 2025
On August 19, 2025, Matthews International Corporation announced the retirement of Steven F. Nicola, its Chief Financial Officer and Treasurer, effective December 31, 2025. Nicola, who has been with the company since 1992 and served as CFO since 2003, played a crucial role in shaping the company’s financial strategy. Daniel E. Stopar, currently the Senior Vice President, Operations Controller & Head of Global Business Services, will succeed Nicola, with duties transitioning on December 1, 2025. Stopar’s appointment is expected to ensure continuity in Matthews’ financial leadership, given his extensive experience in financial and accounting roles within the company.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Matthews International Reports Q3 2025 Earnings Surge
Positive
Aug 6, 2025
On August 5, 2025, Matthews International reported its financial results for the third quarter of fiscal 2025, highlighting a significant increase in GAAP earnings per share to $0.49 from $0.06 a year ago. The company benefited from cost reduction initiatives and the divestiture of its SGK business, which contributed to a $120 million reduction in outstanding debt. Despite a decline in overall sales due to the SGK divestiture, the Memorialization segment saw higher sales, and the Industrial Technologies segment experienced a modest decline due to ongoing litigation impacts. Matthews maintains its fiscal 2025 outlook, expecting further debt reduction and continued strategic evaluation to enhance shareholder value.
Dividends
Matthews International Announces Quarterly Dividend Payment
Positive
Aug 1, 2025
On July 30, 2025, Matthews International Corporation announced a quarterly dividend of $0.25 per share on its common stock, payable on August 25, 2025, to stockholders of record as of August 11, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.
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.