Matthews International Corp (MATW)
NASDAQ:MATW
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Matthews International
(NASDAQ:MATW)
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Rating:56Neutral
Price Target:
$29.00
▲(16.37% Upside)
Action:Reiterated
Date:05/03/26
The score is held back primarily by weak financial performance, especially negative TTM operating/free cash flow and contracting revenue, despite some margin recovery and modest deleveraging. Technical momentum is supportive with the stock trading above key moving averages and a positive MACD. The latest earnings call was constructive with reaffirmed EBITDA guidance and identifiable catalysts, while valuation support comes mainly from the ~3.5% dividend yield given the non-meaningful P/E.
Positive Factors
Memorialization strength
Memorialization is a durable core business with stable end-market demand, strong pricing and improving productivity. Its >$175M annualized adjusted EBITDA run-rate and sequential sales growth provide predictable cash and earnings support, helping offset weaknesses in other segments over the next 2–6 months.
Negative Factors
Negative operating cash flow
TTM negative operating and free cash flow represent a meaningful reversal from prior years and limit internal funding for capex, debt paydown, and dividends. Persistent cash deficits force reliance on asset sales, JV distributions, or borrowing, increasing financial and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Memorialization strength
Memorialization is a durable core business with stable end-market demand, strong pricing and improving productivity. Its >$175M annualized adjusted EBITDA run-rate and sequential sales growth provide predictable cash and earnings support, helping offset weaknesses in other segments over the next 2–6 months.
Read all positive factors
Matthews International (MATW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$837.79M
Dividend Yield3.87%
Average Volume (3M)221.31K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-28.90%
EPS GrowthN/A
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.32
Shares Outstanding31,202,438
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 Cap1.72
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit3.30
Enterprise Value/Ebitda6.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.8
Revenue Forecast (FY)$1.09B
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:Apr 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a constructive strategic and financial narrative: management has materially repaired the balance sheet, achieved meaningful interest savings, demonstrated continued strength and accretive M&A in the Memorialization segment, secured operational and commercial milestones for Propellus, Axiom, and DBE (including favorable arbitration). These positive developments were offset by near-term revenue and EBITDA declines driven largely by intentional divestitures and transitional costs, an expanded operating cash outflow in H1, and ongoing execution risk in Industrial Technologies. Given that most negatives are structural/transitional while several high-impact positive catalysts (debt reduction, Propellus upside, Axiom commercialization, DBE IP win) are in motion, the tone of the call is more positive than negative.Positive Updates
Significant Balance Sheet Improvement & Interest Savings
Completed early redemption of $300M senior secured notes; total long-term debt down to $579M from $822M a year ago (reduction of ~$243M, ~29.6% YoY). Net debt ~ $543M and net debt decreased $135M since FY2025 end. Annual interest expense reduced by approximately $10M due to retiring high-cost notes.
Negative Updates
Sharp Year‑over‑Year Revenue Decline
Consolidated revenues for Q2 were $259M vs $428M a year ago, a decline of ~$169M (~-39.5%), primarily driven by deliberate divestitures (SGK, warehouse automation, European packaging & tooling) that reduced quarter sales by approximately $166M.
Read all updates
Q2-2026 Updates
Positive
Negative
Significant Balance Sheet Improvement & Interest Savings
Completed early redemption of $300M senior secured notes; total long-term debt down to $579M from $822M a year ago (reduction of ~$243M, ~29.6% YoY). Net debt ~ $543M and net debt decreased $135M since FY2025 end. Annual interest expense reduced by approximately $10M due to retiring high-cost notes.
Read all positive updates
Company Guidance
Management reaffirmed full-year fiscal 2026 adjusted EBITDA guidance of at least $180 million (inclusive of its 40% Propellus interest), forecasting a stronger second half driven by Memorialization, Industrial Technologies converting its pipeline, and Propellus synergies; Memorialization is operating at an annualized adjusted EBITDA run-rate well above $175 million (Q2 sales $215.3M; Q2 adjusted EBITDA $48.8M; YTD sales $419M and YTD adjusted EBITDA $88M) and Dodge is adding roughly $10M of sales per quarter with an expected adjusted purchase price under $50M and EBITDA contribution exceeding $12M. Propellus is expected to unlock over $25M of the >$60M identified synergies from its SAP migration, is performing above a $100M EBITDA run-rate with an expected ~ $130M run-rate into 2027, and an exit is targeted in 12–18 months (partial preferred redemption expected near term). Industrial Technologies has a $25M awarded order plus about $75M of orders in active pursuit, Axiom’s total addressable market is now ~ $3B (though not material to 2026 revenue), management expects Q3–Q4 to generate positive operating cash flow, and balance-sheet actions have reduced total long-term debt to $579M (net debt ~$543M) with annual interest expense down roughly $10M.Matthews International Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.50B | 1.80B | 1.88B | 1.76B | 1.67B |
| Gross Profit | 436.77M | 507.59M | 531.88M | 547.80M | 477.79M | 474.90M |
| EBITDA | 220.07M | 150.85M | 77.14M | 187.83M | 24.43M | 165.73M |
| Net Income | 9.71M | -24.47M | -59.66M | 39.29M | -99.83M | 2.91M |
Balance Sheet | ||||||
| Total Assets | 1.53B | 1.69B | 1.83B | 1.89B | 1.88B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 36.09M | 32.43M | 40.82M | 42.10M | 71.41M | 49.18M |
| Total Debt | 635.50M | 764.12M | 839.16M | 864.35M | 872.88M | 846.13M |
| Total Liabilities | 1.02B | 1.21B | 1.40B | 1.36B | 1.40B | 1.40B |
| Stockholders Equity | 512.22M | 480.94M | 437.16M | 525.67M | 487.08M | 636.40M |
Cash Flow | ||||||
| Free Cash Flow | -99.15M | -59.37M | 34.06M | 28.93M | 65.54M | 128.50M |
| Operating Cash Flow | -72.30M | -23.55M | 79.28M | 79.52M | 126.86M | 162.81M |
| Investing Cash Flow | 403.14M | 159.59M | -46.97M | -58.73M | -80.85M | -12.99M |
| Financing Cash Flow | -346.22M | -144.27M | -35.04M | -50.20M | -37.21M | -122.85M |
Matthews International Technical Analysis
Positive
24.92
Price Trends
26.38
Positive
26.31
Positive
25.03
Positive
Market Momentum
0.11
Positive
47.38
Neutral
16.78
Positive
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 27.67, below the 50-day MA of 26.38, and below the 200-day MA of 25.03, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.78 is Positive, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $4.46B | 11.89 | 11.47% | 0.21% | 6.56% | 501.77% | |
64 Neutral | $4.70B | 13.17 | 6.80% | 2.76% | -45.41% | -28.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $837.79M | -9.30 | 1.89% | 3.87% | -28.90% | ― | |
54 Neutral | $904.34M | -4.81 | -46.27% | 20.53% | 7.52% | -1.67% | |
52 Neutral | $508.10M | -1.28 | -41.74% | 1.90% | 72.20% | -267.01% | |
43 Neutral | $1.08B | 46.67 | 137.09% | ― | 167.61% | ― |
* Industrials Sector Average
MATW
Matthews International
26.94
7.05
35.41%
CODI
Compass Diversified Holdings
11.94
4.11
52.49%
MDU
Mdu Resources Group
22.29
5.20
30.46%
SEB
Seaboard
4,811.30
2,343.66
94.98%
FBYD
Falcon's Beyond Global
13.28
5.90
79.88%
FIP
FTAI Infrastructure Incorporation
4.23
-0.94
-18.17%
Matthews International Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsM&A TransactionsPrivate Placements and Financing
Matthews International Reports Q2 Results, Maintains 2026 Outlook
Positive
May 1, 2026
Matthews International reported its fiscal 2026 second-quarter results on April 30, 2026, highlighting higher sales and adjusted EBITDA in its Memorialization segment, aided by the accretive acquisition of The Dodge Company and ongoing productivit...
Business Operations and StrategyDividends
Matthews International Declares Quarterly Cash Dividend for Shareholders
Positive
Apr 30, 2026
On April 29, 2026, Matthews International Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.255 per share on its common stock. The dividend will be paid on May 25, 2026, to shareholders of record as of May ...
Business Operations and StrategyExecutive/Board Changes
Matthews International Details Phased Memorialization Leadership Transition
Neutral
Apr 10, 2026
On April 8, 2026, Matthews International Corporation entered into an Employment and Transition Agreement with Steven D. Gackenbach, under which he will continue serving full time as Group President, Memorialization through September 30, 2026 befor...
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...
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.