MATTHEWS INTL CORP-CLASS A (MATW) Stock Fundamental Analysis
NASDAQ:MATW - Nasdaq - US5771281012 - Common Stock - Currency: USD
MATW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. MATW has a bad profitability rating. Also its financial health evaluation is rather negative. MATW is valued expensive and it does not seem to be growing. Finally MATW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MATW had positive earnings in the past year.
In the past year MATW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MATW reported negative net income in multiple years.
Each year in the past 5 years MATW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.31%, MATW is doing worse than 61.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of -19.30%, MATW is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.31% | ||
| ROE | -19.3% | ||
| ROIC | N/A |
ROA(3y)-2.16%
ROA(5y)-2.11%
ROE(3y)-8.88%
ROE(5y)-8.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of MATW has declined.
MATW has a Gross Margin (30.31%) which is in line with its industry peers.
MATW's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for MATW so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.31% |
OM growth 3Y-53.96%
OM growth 5Y-46.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.1%
GM growth 5Y-3.52%
2. Health
2.1 Basic Checks
MATW does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MATW has more shares outstanding
The number of shares outstanding for MATW has been reduced compared to 5 years ago.
The debt/assets ratio for MATW is higher compared to a year ago.
2.2 Solvency
MATW has an Altman-Z score of 1.82. This is not the best score and indicates that MATW is in the grey zone with still only limited risk for bankruptcy at the moment.
MATW's Altman-Z score of 1.82 is in line compared to the rest of the industry. MATW outperforms 45.24% of its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that MATW has dependencies on debt financing.
MATW has a Debt to Equity ratio of 2.00. This is in the lower half of the industry: MATW underperforms 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACCN/A
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.59 indicates that MATW should not have too much problems paying its short term obligations.
MATW has a Current ratio of 1.59. This is comparable to the rest of the industry: MATW outperforms 53.57% of its industry peers.
MATW has a Quick Ratio of 1.09. This is a normal value and indicates that MATW is financially healthy and should not expect problems in meeting its short term obligations.
MATW's Quick ratio of 1.09 is on the low side compared to the rest of the industry. MATW is outperformed by 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
MATW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.39%.
Measured over the past years, MATW shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.10% on average per year.
Looking at the last year, MATW shows a decrease in Revenue. The Revenue has decreased by -9.04% in the last year.
Measured over the past years, MATW shows a small growth in Revenue. The Revenue has been growing by 3.16% on average per year.
EPS 1Y (TTM)-42.39%
EPS 3Y-12.86%
EPS 5Y-8.1%
EPS Q2Q%-50.72%
Revenue 1Y (TTM)-9.04%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-9.25%
3.2 Future
Based on estimates for the next years, MATW will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.38% on average per year.
Based on estimates for the next years, MATW will show a very negative growth in Revenue. The Revenue will decrease by -13.90% on average per year.
EPS Next Y-49.24%
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
EPS Next 5YN/A
Revenue Next Year-19.12%
Revenue Next 2Y-20.03%
Revenue Next 3Y-13.9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.57, which indicates a correct valuation of MATW.
Based on the Price/Earnings ratio, MATW is valued a bit cheaper than 77.38% of the companies in the same industry.
MATW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
MATW is valuated quite expensively with a Price/Forward Earnings ratio of 30.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MATW is on the same level as its industry peers.
MATW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 30.48 |
4.2 Price Multiples
MATW's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
MATW's earnings are expected to decrease with -17.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, MATW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.50, MATW pays a better dividend. On top of this MATW pays more dividend than 92.86% of the companies listed in the same industry.
MATW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of MATW has a limited annual growth rate of 4.81%.
MATW has been paying a dividend for at least 10 years, so it has a reliable track record.
MATW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.81%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
The earnings of MATW are negative and hence is the payout ratio. MATW will probably not be able to sustain this dividend level.
DP-40.33%
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
23.16
+0.12 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change0.77%
Ins Owners4.49%
Ins Owner Change1.58%
Market Cap718.19M
Analysts82.5
Price Target38.76 (67.36%)
Short Float %4.98%
Short Ratio6.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.03
Dividend Growth(5Y)4.81%
DP-40.33%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.64%
Min EPS beat(2)-39%
Max EPS beat(2)-12.28%
EPS beat(4)1
Avg EPS beat(4)-2.61%
Min EPS beat(4)-39%
Max EPS beat(4)41.9%
EPS beat(8)4
Avg EPS beat(8)7%
EPS beat(12)7
Avg EPS beat(12)7.35%
EPS beat(16)11
Avg EPS beat(16)8.86%
Revenue beat(2)0
Avg Revenue beat(2)-5.74%
Min Revenue beat(2)-7.72%
Max Revenue beat(2)-3.76%
Revenue beat(4)0
Avg Revenue beat(4)-4.72%
Min Revenue beat(4)-7.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-2.82%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)8
Avg Revenue beat(16)1.32%
PT rev (1m)0%
PT rev (3m)-7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 30.48 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 23.35 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.67 |
EPS(TTM)1.59
EY6.87%
EPS(NY)0.76
Fwd EY3.28%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)0.99
OCFY4.28%
SpS54.95
BVpS13.16
TBVpS-4.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.31% | ||
| ROE | -19.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.31% | ||
| FCFM | N/A |
ROA(3y)-2.16%
ROA(5y)-2.11%
ROE(3y)-8.88%
ROE(5y)-8.09%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.17%
ROCE(5y)2.7%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-53.96%
OM growth 5Y-46.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.1%
GM growth 5Y-3.52%
F-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.27 | ||
| Cap/Depr | 44.47% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 42.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.82 |
F-Score3
WACC7.66%
ROIC/WACCN/A
Cap/Depr(3y)53.01%
Cap/Depr(5y)42.79%
Cap/Sales(3y)2.9%
Cap/Sales(5y)2.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.39%
EPS 3Y-12.86%
EPS 5Y-8.1%
EPS Q2Q%-50.72%
EPS Next Y-49.24%
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.04%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-9.25%
Revenue Next Year-19.12%
Revenue Next 2Y-20.03%
Revenue Next 3Y-13.9%
Revenue Next 5YN/A
EBIT growth 1Y-120.74%
EBIT growth 3Y-52.84%
EBIT growth 5Y-45.05%
EBIT Next Year274.35%
EBIT Next 3Y60.88%
EBIT Next 5YN/A
FCF growth 1Y-120.75%
FCF growth 3Y-35.76%
FCF growth 5Y-18.27%
OCF growth 1Y-68.9%
OCF growth 3Y-21.32%
OCF growth 5Y-9.57%