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Matthews International (MATW)
NASDAQ:MATW
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Matthews International
(NASDAQ:MATW)
Rating:48Neutral
Price Target:―
Matthews International (MATW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$641.88M
Dividend Yield4.73%
Average Volume (3M)278.82K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-9.04%
EPS Growth-339.31%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength90
IndustryConglomerates
Share Statistics
EPS (TTM)0.34
Shares Outstanding31,008,623
10 Day Avg. Volume257,814
30 Day Avg. Volume278,822
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.44
Price to Sales (P/S)0.00
P/FCF Ratio-92.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.00Price Target Upside98.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 its diverse range of products and services across its three main business segments. In the SGK Brand Solutions segment, the company earns money by providing branding and packaging services to consumer goods companies, which pay for expertise in enhancing their brand image and packaging design. The Memorialization segment makes money by selling memorial products, such as headstones and caskets, to cemeteries and funeral homes, as well as cremation and incineration equipment. The Industrial Technologies segment contributes to the company's earnings by selling marking and coding equipment and providing automation solutions to a variety of industries. Matthews International also benefits from strategic partnerships and long-term contracts with clients in each of its sectors, contributing to stable and recurring revenue streams.
Matthews International Financial Statement Overview
Summary
Matthews International is facing significant financial challenges, with negative EBIT and net income indicating struggles with profitability. Declining margins and revenue further underscore contraction in business activities. The balance sheet shows high leverage and a declining cash flow situation, necessitating 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.45
Neutral
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.50
Neutral
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.40
Negative
| 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
Negative
20.18
Price Trends
20.84
Negative
23.69
Negative
24.03
Negative
Market Momentum
-0.03
Negative
47.78
Neutral
49.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATW, the sentiment is Negative. The current price of 20.18 is above the 20-day moving average (MA) of 20.16, below the 50-day MA of 20.84, and below the 200-day MA of 24.03, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MATW.
Matthews International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.63B | 13.88 | 9.63% | 2.92% | -25.50% | -45.13% | |
64 Neutral | $4.46B | 11.94 | 5.17% | 249.36% | 4.00% | -12.35% | |
59 Neutral | $2.44B | 24.86 | 2.09% | 0.36% | -0.31% | -58.07% | |
58 Neutral | $591.35M | ― | -4.98% | 12.77% | 6.77% | 9.95% | |
58 Neutral | $742.09M | 3.47 | 24.14% | ― | 5.83% | 72.33% | |
55 Neutral | $574.95M | ― | -6.42% | 2.26% | 5.70% | 36.39% | |
48 Neutral | $641.88M | ― | -17.17% | 4.73% | -9.04% | -339.31% |
* Industrials Sector Average
Performance Comparison
MATW
Matthews International
20.18
-7.02
-25.81%
CODI
Compass Diversified Holdings
7.25
-13.55
-65.14%
MDU
Mdu Resources Group
17.13
3.53
25.96%
SEB
Seaboard
2,459.69
-883.51
-26.43%
SPLP
Steel Partners Holdings
38.76
-0.74
-1.87%
FIP
FTAI Infrastructure Incorporation
5.02
-3.34
-39.95%
Matthews International Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q2-2025)
| % Change Since: -0.10%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as significant reengagement in the Energy Solutions segment and progress in strategic transactions, alongside challenges including a decline in revenue and increased net loss. The sentiment is balanced with notable achievements and ongoing difficulties.Q2-2025 Updates
Positive Updates
Energy Solutions Reengagement
Reengaged with multiple battery manufacturers and auto OEMs, issuing quotes in excess of $100 million for dry battery electrode technology solutions.
SGK Transaction Progress
Secured all regulatory approvals for the SGK transaction, expecting $350 million in initial consideration and a total of $400 million, including $250 million in cash.
Warehouse Automation Partnership
Entered into an agreement with Teradyne Inc. to market autonomous robotic solutions, enhancing the warehouse execution software capabilities.
Cost Reduction Efforts
Cost reduction initiatives are on track to generate savings in excess of the initial $50 million projection.
Negative Updates
Year-over-Year Revenue Decline
Consolidated sales for the second quarter were $428 million, down from $471 million in the previous year, primarily due to challenges in the Energy Solutions business.
Memorialization Revenue Decrease
Memorialization revenues were down by 7%, primarily due to volume declines in bronze and granite businesses and the closure of the UK cremation facility.
Increased Net Loss
Reported a net loss of $8.9 million for the quarter compared to a net income of $9 million a year ago, primarily due to lower adjusted EBITDA and higher interest expenses.
Company Guidance
In the Matthews International Second Quarter Fiscal 2025 earnings call, the company provided guidance across various metrics, highlighting strategic initiatives and financial expectations. They reported $428 million in consolidated sales, a decrease from $471 million in the same quarter of 2024, primarily due to challenges in the Energy Solutions segment. Adjusted EBITDA was $51.4 million, lower than the previous year's $56.8 million, though higher than anticipated due to cost reduction efforts. The company issued quotes exceeding $100 million for dry battery electrode (DBE) technology solutions, with significant demand from markets in South Korea, Europe, and North America. Interest in their equipment spans both EV battery production and grid storage, the latter representing a fast-growing market. Additionally, Matthews completed regulatory approvals for the SGK transaction, expecting $350 million in upfront consideration and projecting $300 million from future investments. They updated their 2025 adjusted EBITDA guidance to at least $190 million, reflecting the SGK transaction's impact. Cost reduction initiatives are on track to exceed $50 million, and the company plans to apply SGK transaction proceeds towards debt reduction and potential stock repurchases.Matthews International Corporate Events
M&A TransactionsBusiness Operations and Strategy
Matthews International Completes SGK Brand Solutions Sale
Positive
May 1, 2025
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.
Dividends
Matthews International Announces Quarterly Dividend Payment
Neutral
May 1, 2025
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.
M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Matthews International Awaits SGK Transaction Closure
Neutral
May 1, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.