MATTHEWS INTL CORP-CLASS A (MATW) Stock Fundamental Analysis
NASDAQ:MATW - Nasdaq - US5771281012 - Common Stock - Currency: USD
MATW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. MATW may be in some trouble as it scores bad on both profitability and health. MATW has a valuation in line with the averages, but it does not seem to be growing. MATW also has an excellent dividend rating.
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.
In multiple years MATW reported negative net income over the last 5 years.
Each year in the past 5 years MATW had a positive operating cash flow.
1.2 Ratios
MATW has a worse Return On Assets (-3.40%) than 61.45% of its industry peers.
Looking at the Return On Equity, with a value of -14.71%, MATW is doing worse than 63.86% of the companies in the same industry.
With a Return On Invested Capital value of 0.04%, MATW is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
MATW had an Average Return On Invested Capital over the past 3 years of 2.51%. This is significantly below the industry average of 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.4% | ||
| ROE | -14.71% | ||
| ROIC | 0.04% |
ROA(3y)-2.16%
ROA(5y)-2.11%
ROE(3y)-8.88%
ROE(5y)-8.09%
ROIC(3y)2.51%
ROIC(5y)2.14%
1.3 Margins
Looking at the Operating Margin, with a value of 0.04%, MATW is doing worse than 67.47% of the companies in the same industry.
In the last couple of years the Operating Margin of MATW has declined.
MATW has a Gross Margin (29.93%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MATW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.04% | ||
| PM (TTM) | N/A | ||
| GM | 29.93% |
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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MATW has been increased compared to 1 year ago.
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
An Altman-Z score of 1.87 indicates that MATW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.87, MATW is in line with its industry, outperforming 44.58% of the companies in the same industry.
MATW has a debt to FCF ratio of 19.80. This is a negative value and a sign of low solvency as MATW would need 19.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.80, MATW is in line with its industry, outperforming 44.58% of the companies in the same industry.
MATW has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
MATW's Debt to Equity ratio of 1.94 is on the low side compared to the rest of the industry. MATW is outperformed by 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 19.8 | ||
| Altman-Z | 1.87 |
ROIC/WACC0
WACC7.89%
2.3 Liquidity
MATW has a Current Ratio of 1.58. This is a normal value and indicates that MATW is financially healthy and should not expect problems in meeting its short term obligations.
MATW has a Current ratio of 1.58. This is comparable to the rest of the industry: MATW outperforms 57.83% of its industry peers.
MATW has a Quick Ratio of 1.58. This is a bad value and indicates that MATW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.96, MATW is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
MATW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.68%.
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.
MATW shows a decrease in Revenue. In the last year, the revenue decreased by -7.13%.
The Revenue has been growing slightly by 3.16% on average over the past years.
EPS 1Y (TTM)-28.68%
EPS 3Y-12.86%
EPS 5Y-8.1%
EPS Q2Q%-62.16%
Revenue 1Y (TTM)-7.13%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-10.7%
3.2 Future
Based on estimates for the next years, MATW will show a decrease in Earnings Per Share. The EPS will decrease by -8.12% on average per year.
MATW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.20% yearly.
EPS Next Y-21.74%
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
EPS Next 5YN/A
Revenue Next Year-3.23%
Revenue Next 2Y-0.71%
Revenue Next 3Y-9.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 10.06 indicates a reasonable valuation of MATW.
MATW's Price/Earnings ratio is rather cheap when compared to the industry. MATW is cheaper than 84.34% of the companies in the same industry.
MATW is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.78, the valuation of MATW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MATW is valued cheaper than 87.95% of the companies in the same industry.
MATW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
MATW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MATW is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 14.62 |
4.3 Compensation for Growth
A cheap valuation may be justified as MATW's earnings are expected to decrease with -8.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.13%, MATW is a good candidate for dividend investing.
The stock price of MATW dropped by -37.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.58, 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 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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
MATW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-51.56%
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
19.51
-0.39 (-1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.32%
Inst Owner Change0.13%
Ins Owners4.69%
Ins Owner Change14.8%
Market Cap604.22M
Analysts82.5
Price Target41.82 (114.35%)
Short Float %3.23%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend1.03
Dividend Growth(5Y)4.81%
DP-51.56%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.45%
Min EPS beat(2)-39%
Max EPS beat(2)41.9%
EPS beat(4)2
Avg EPS beat(4)12.62%
Min EPS beat(4)-39%
Max EPS beat(4)48.67%
EPS beat(8)5
Avg EPS beat(8)11.5%
EPS beat(12)8
Avg EPS beat(12)8.76%
EPS beat(16)12
Avg EPS beat(16)10.7%
Revenue beat(2)0
Avg Revenue beat(2)-4.14%
Min Revenue beat(2)-7.72%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-7.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)9
Avg Revenue beat(16)1.81%
PT rev (1m)0%
PT rev (3m)10.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.35 | ||
| P/FCF | 14.79 | ||
| P/OCF | 7.41 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.62 |
EPS(TTM)1.94
EY9.94%
EPS(NY)1.99
Fwd EY10.22%
FCF(TTM)1.32
FCFY6.76%
OCF(TTM)2.63
OCFY13.49%
SpS56.43
BVpS13.35
TBVpS-12.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.4% | ||
| ROE | -14.71% | ||
| ROCE | 0.05% | ||
| ROIC | 0.04% | ||
| ROICexc | 0.04% | ||
| ROICexgc | 0.09% | ||
| OM | 0.04% | ||
| PM (TTM) | N/A | ||
| GM | 29.93% | ||
| FCFM | 2.34% |
ROA(3y)-2.16%
ROA(5y)-2.11%
ROE(3y)-8.88%
ROE(5y)-8.09%
ROIC(3y)2.51%
ROIC(5y)2.14%
ROICexc(3y)2.6%
ROICexc(5y)2.21%
ROICexgc(3y)6.57%
ROICexgc(5y)5.73%
ROCE(3y)3.17%
ROCE(5y)2.7%
ROICexcg growth 3Y-51.22%
ROICexcg growth 5Y-43.29%
ROICexc growth 3Y-49.91%
ROICexc growth 5Y-41.4%
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 19.8 | ||
| Debt/EBITDA | 8.5 | ||
| Cap/Depr | 43.39% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.87 |
F-Score4
WACC7.89%
ROIC/WACC0
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)-28.68%
EPS 3Y-12.86%
EPS 5Y-8.1%
EPS Q2Q%-62.16%
EPS Next Y-21.74%
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.13%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-10.7%
Revenue Next Year-3.23%
Revenue Next 2Y-0.71%
Revenue Next 3Y-9.2%
Revenue Next 5YN/A
EBIT growth 1Y-99.19%
EBIT growth 3Y-52.84%
EBIT growth 5Y-45.05%
EBIT Next Year327.96%
EBIT Next 3Y66.58%
EBIT Next 5YN/A
FCF growth 1Y-28.06%
FCF growth 3Y-35.76%
FCF growth 5Y-18.27%
OCF growth 1Y-30.84%
OCF growth 3Y-21.32%
OCF growth 5Y-9.57%