Matthews International (MATW) AI Stock Analysis

• Market Cap: $819.24M
• Dividend Yield: 3.87%
• Average Volume (3M): 196.96K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 1.05
• Revenue Growth: -16.60%
• EPS Growth: 58.86%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.19
• Shares Outstanding: 31,126,081
• 10 Day Avg. Volume: 270,414
• 30 Day Avg. Volume: 196,959
• 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: 1.62
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 5.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $27.00 ▲(8.35% Upside)

The score is held back primarily by weak cash flow (TTM cash burn) and declining revenue, despite improving margins and a better leverage profile. Earnings-call takeaways were moderately positive due to FY2026 EBITDA guidance and balance-sheet transformation, while technicals are neutral and valuation is mixed (high P/E partly offset by a strong dividend yield).

Positive Factors

Balance Sheet Strength

Management materially repaired the capital structure: net debt fell to ~ $500M and the company redeemed $300M of 8.625% notes, lowering annual interest expense by ~$12M. Achieving sub‑3x leverage and pension de‑risking improves financial flexibility and reduces refinancing risk over the medium term.

Stable Memorialization Cash Flows

The Memorialization segment generated durable, margin‑supporting revenue with a 7% sales lift and improved adjusted EBITDA. Its recurring demand (caskets, memorial products) plus the accretive Dodge acquisition enhances predictable cash generation and underpins dividends and core cash flow stability.

Propelis Strategic Asset

The 40% Propelis stake provides a meaningful optionality channel: higher current EBITDA run‑rate, targeted >$60M synergies (including ~$20M from SAP), and a $50M preferred with 10% PIK. Expected exit in 18–24 months could deliver cash proceeds or deconsolidation benefits, bolstering longer‑term leverage relief.

Negative Factors

Weak Cash Generation

Trailing‑12‑month operating and free cash flows are negative, creating a cash burn that heightens financing reliance on asset sales and joint‑venture proceeds. Persistent negative cash conversion would constrain reinvestment, limit margin improvement initiatives, and pressure dividend sustainability if not reversed.

Revenue Contraction

Large YoY revenue decline largely from divestitures has materially shrunk the top line and scale. While strategic, the reduced revenue base impairs operating leverage, makes fixed costs more burdensome, and raises the bar for organic growth to replace lost sales and support past profit levels.

Industrial Tech Volatility

Industrial Technologies swung to a loss amid weaker engineering sales and tooling divestitures, showing earnings sensitivity to project timing and volumes. Coupled with Energy Solutions order timing risk, this operational volatility undermines predictability of consolidated EBITDA and complicates durable margin recovery.

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

Profitability and gross margin improved in the TTM period and leverage metrics look better versus prior years, but revenue is down (-7.8%) and cash generation is a major weakness with negative TTM operating cash flow and free cash flow (cash burn increases financing risk).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-7.8%), but profitability improved versus recent annual results: net margin is positive (~1.6%) after losses in FY2024 and FY2025 annual. Gross margin is also higher in TTM (~34%) than the prior few years (~27–33%), supporting earnings recovery. Offsetting this, overall growth has been negative recently and the company’s profit profile remains thin, leaving results sensitive to cost pressure and volume declines.

Balance Sheet

Leverage has improved in TTM: debt is roughly in line with equity (debt-to-equity ~1.0) versus meaningfully higher leverage in prior annual periods (~1.6–1.9). Equity has also risen from the FY2024 trough, and TTM return on equity is modestly positive (~4.7%) following negative returns in FY2024–FY2025 annual. The key weakness is that leverage is still material for a modest-margin business, which can limit flexibility if earnings weaken again.

Cash Flow

Cash generation is the main concern: TTM operating cash flow and free cash flow are both negative (about -$51M and -$82M), indicating the business is currently consuming cash. While the latest annual period also showed negative operating and free cash flow, earlier years (FY2022–FY2024) produced positive cash flow, suggesting volatility rather than a consistently cash-strong model. The current negative cash flow trend increases reliance on financing and heightens risk if the downturn persists.

Breakdown	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.50B	―	1.80B	1.88B	1.76B
Gross Profit	487.52M	―	531.88M	547.80M	477.79M
EBITDA	147.20M	―	77.14M	187.83M	24.43M
Net Income	-24.47M	―	-59.66M	39.29M	-99.83M
Balance Sheet
Total Assets	1.69B	―	1.83B	1.89B	1.88B
Cash, Cash Equivalents and Short-Term Investments	32.43M	―	40.82M	42.10M	71.41M
Total Debt	764.12M	―	839.16M	864.35M	872.88M
Total Liabilities	1.21B	―	1.40B	1.36B	1.40B
Stockholders Equity	480.94M	―	437.16M	525.67M	487.08M
Cash Flow
Free Cash Flow	-59.37M	―	34.06M	28.93M	65.54M
Operating Cash Flow	-23.55M	―	79.28M	79.52M	126.86M
Investing Cash Flow	159.59M	―	-46.97M	-58.73M	-80.85M
Financing Cash Flow	-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: Positive
• 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 27.04, below the 50-day MA of 26.32, and above the 200-day MA of 23.71, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 31.96 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	$5.11B	12.94	8.36%	0.21%	10.31%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MDU	59 Neutral	$4.30B	25.34	6.42%	2.76%	-57.80%	-57.40%
FIP	56 Neutral	$682.65M	-2.43	-13.99%	1.90%	32.39%	-19.35%
MATW	52 Neutral	$819.24M	37.84	4.73%	3.87%	-16.60%	58.86%
CODI	45 Neutral	$492.80M	-1.19	-41.05%	20.53%	-15.85%	-59.42%
FBYD	42 Neutral	$328.10M	-56.00	28.00%	―	28.46%	-105.62%

Matthews International Corporate Events

Matthews International posts strong Q1 results, streamlining operations

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 segment, aided by the acquisition of The Dodge Company, inflationary price realization, and productivity initiatives. During the quarter, the company completed the divestitures of its warehouse automation and European packaging businesses—fully exiting controlling interests in its former Brand Solutions segment—using $225.4 million in proceeds to help reduce consolidated debt by $174 million and later redeem $300 million of high‑coupon notes, actions aimed at lowering interest expense, simplifying the business, and enhancing shareholder value while maintaining its fiscal 2026 adjusted EBITDA outlook of at least $180 million and continuing a strategic review of alternatives.

The most recent analyst rating on (MATW) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

Matthews International Declares Quarterly Dividend, Signals Stability

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, 2026. The move underscores the company’s continued return of capital to shareholders and signals financial stability at a time when Matthews is pursuing long-term growth through its Industrial Technologies and Memorialization segments and managing its strategic investment in brand solutions provider Propelis.

The most recent analyst rating on (MATW) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Matthews International stock, see the MATW Stock Forecast page.

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.