MATTHEWS INTL CORP-CLASS A (MATW) Stock Fundamental Analysis
NASDAQ:MATW - Nasdaq - US5771281012 - Common Stock - Currency: USD
Taking everything into account, MATW scores 2 out of 10 in our fundamental rating. MATW was compared to 83 industry peers in the Commercial Services & Supplies industry. MATW has a bad profitability rating. Also its financial health evaluation is rather negative. MATW has a expensive valuation and it also scores bad on growth. 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.
In multiple years MATW reported negative net income over the last 5 years.
MATW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.31%, MATW is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
MATW has a Return On Equity of -19.30%. This is in the lower half of the industry: MATW underperforms 67.47% of its industry peers.
| 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 (30.46%) which is comparable to the rest of the industry.
MATW's Gross Margin has declined in the last couple of years.
MATW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.46% |
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.
MATW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that MATW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.81, MATW is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.00 is on the high side and indicates that MATW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.00, MATW is doing worse than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACCN/A
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.59 indicates that MATW should not have too much problems paying its short term obligations.
MATW's Current ratio of 1.59 is in line compared to the rest of the industry. MATW outperforms 54.22% of its industry peers.
A Quick Ratio of 1.09 indicates that MATW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, MATW is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
| 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%.
MATW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.10% yearly.
MATW shows a decrease in Revenue. In the last year, the revenue decreased by -9.04%.
The Revenue has been growing slightly by 3.16% on average over the past years.
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
MATW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.38% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.49, the valuation of MATW can be described as correct.
Based on the Price/Earnings ratio, MATW is valued a bit cheaper than 78.31% of the companies in the same industry.
MATW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.23, MATW can be considered very expensive at the moment.
MATW's Price/Forward Earnings is on the same level as the industry average.
MATW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MATW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.76 |
4.3 Compensation for Growth
A cheap valuation may be justified as MATW's earnings are expected to decrease with -17.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
5. Dividend
5.1 Amount
MATW has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 2.52, MATW pays a better dividend. On top of this MATW pays more dividend than 96.39% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
5.2 History
The dividend of MATW has a limited annual growth rate of 4.81%.
MATW has paid a dividend for at least 10 years, which is a reliable track record.
MATW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.81%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
MATW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-40.33%
EPS Next 2Y-40.82%
EPS Next 3Y-17.38%
21.45
-0.48 (-2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.32%
Inst Owner Change-3.47%
Ins Owners4.69%
Ins Owner Change1.51%
Market Cap665.16M
Analysts82.5
Price Target38.76 (80.7%)
Short Float %4.51%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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)-7.32%
PT rev (3m)-7.32%
EPS NQ rev (1m)-40%
EPS NQ rev (3m)-40%
EPS NY rev (1m)-35.14%
EPS NY rev (3m)-35.14%
Revenue NQ rev (1m)-25.06%
Revenue NQ rev (3m)-25.06%
Revenue NY rev (1m)-16.42%
Revenue NY rev (3m)-16.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 28.23 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | 21.62 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.76 |
EPS(TTM)1.59
EY7.41%
EPS(NY)0.76
Fwd EY3.54%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)0.99
OCFY4.62%
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 | 30.46% | ||
| 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-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.03 | ||
| Cap/Depr | 44.47% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 41.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.81 |
F-Score4
WACC8.03%
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-118.73%
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%