MATTHEWS INTL CORP-CLASS A (MATW)
US5771281012 - Common Stock
Taking everything into account, MATW scores 4 out of 10 in our fundamental rating. MATW was compared to 85 industry peers in the Commercial Services & Supplies industry. MATW has an average financial health and profitability rating. MATW is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MATW had positive earnings in the past year.
MATW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MATW reported negative net income in multiple years.
In the past 5 years MATW always reported a positive cash flow from operatings.
1.2 Ratios
MATW has a Return On Assets (1.74%) which is in line with its industry peers.
MATW has a Return On Equity of 6.53%. This is in the better half of the industry: MATW outperforms 63.10% of its industry peers.
MATW has a Return On Invested Capital of 4.09%. This is comparable to the rest of the industry: MATW outperforms 46.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MATW is significantly below the industry average of 10.04%.
The 3 year average ROIC (3.08%) for MATW is below the current ROIC(4.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 6.53% | ||
| ROIC | 4.09% |
ROA(3y)-1.03%
ROA(5y)-1.8%
ROE(3y)-4.18%
ROE(5y)-6.42%
ROIC(3y)3.08%
ROIC(5y)2.81%
1.3 Margins
MATW's Profit Margin of 1.76% is in line compared to the rest of the industry. MATW outperforms 51.19% of its industry peers.
In the last couple of years the Profit Margin of MATW has declined.
Looking at the Operating Margin, with a value of 4.27%, MATW is in line with its industry, outperforming 45.24% of the companies in the same industry.
MATW's Operating Margin has declined in the last couple of years.
MATW has a Gross Margin of 30.35%. This is comparable to the rest of the industry: MATW outperforms 48.81% of its industry peers.
In the last couple of years the Gross Margin of MATW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 1.76% | ||
| GM | 30.35% |
OM growth 3Y38.88%
OM growth 5Y-11.54%
PM growth 3YN/A
PM growth 5Y-20.79%
GM growth 3Y-2.58%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MATW is destroying value.
Compared to 1 year ago, MATW has more shares outstanding
Compared to 5 years ago, MATW has less shares outstanding
Compared to 1 year ago, MATW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.23 indicates that MATW is not a great score, but indicates only limited risk for bankruptcy at the moment.
MATW has a Altman-Z score of 2.23. This is comparable to the rest of the industry: MATW outperforms 53.57% of its industry peers.
The Debt to FCF ratio of MATW is 23.85, which is on the high side as it means it would take MATW, 23.85 years of fcf income to pay off all of its debts.
MATW has a Debt to FCF ratio (23.85) which is comparable to the rest of the industry.
MATW has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
MATW has a worse Debt to Equity ratio (1.69) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 23.85 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.52
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.88 indicates that MATW should not have too much problems paying its short term obligations.
The Current ratio of MATW (1.88) is better than 69.05% of its industry peers.
A Quick Ratio of 1.15 indicates that MATW should not have too much problems paying its short term obligations.
MATW has a Quick ratio of 1.15. This is comparable to the rest of the industry: MATW outperforms 44.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MATW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.98%.
MATW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.17% yearly.
MATW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.72%.
The Revenue has been growing slightly by 3.25% on average over the past years.
EPS 1Y (TTM)6.98%
EPS 3Y-1.46%
EPS 5Y-6.17%
EPS growth Q2Q6.15%
Revenue 1Y (TTM)6.72%
Revenue growth 3Y7.88%
Revenue growth 5Y3.25%
Revenue growth Q2Q-1.74%
3.2 Future
Based on estimates for the next years, MATW will show a small growth in Earnings Per Share. The EPS will grow by 2.04% on average per year.
MATW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y-8.62%
EPS Next 2Y-0.68%
EPS Next 3Y2.04%
EPS Next 5YN/A
Revenue Next Year1.04%
Revenue Next 2Y1.78%
Revenue Next 3Y2.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 10.59, the valuation of MATW can be described as reasonable.
Based on the Price/Earnings ratio, MATW is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.15, MATW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.29, the valuation of MATW can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MATW indicates a rather cheap valuation: MATW is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. MATW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
63.10% of the companies in the same industry are more expensive than MATW, based on the Enterprise Value to EBITDA ratio.
66.67% of the companies in the same industry are more expensive than MATW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.79 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.68%
EPS Next 3Y2.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, MATW has a reasonable but not impressive dividend return.
MATW's Dividend Yield is rather good when compared to the industry average which is at 2.31. MATW pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, MATW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of MATW has a limited annual growth rate of 3.76%.
MATW has been paying a dividend for at least 10 years, so it has 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)3.76%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
91.82% of the earnings are spent on dividend by MATW. This is not a sustainable payout ratio.
The dividend of MATW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.82%
EPS Next 2Y-0.68%
EPS Next 3Y2.04%
MATTHEWS INTL CORP-CLASS A
NASDAQ:MATW (5/17/2024, 7:12:03 PM)
After market: 29.22 0 (0%)29.22
-0.48 (-1.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap896.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 10.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 6.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.27% | ||
| PM (TTM) | 1.76% | ||
| GM | 30.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.98%
EPS 3Y-1.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.72%
Revenue growth 3Y7.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y