MATTHEWS INTL CORP-CLASS A (MATW) Stock Fundamental Analysis
NASDAQ:MATW - Nasdaq - US5771281012 - Common Stock - Currency: USD
Taking everything into account, MATW scores 3 out of 10 in our fundamental rating. MATW was compared to 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 correctly, but it does not seem to be growing. Finally MATW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MATW was profitable.
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
With a Return On Assets value of -3.25%, MATW is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
The Return On Equity of MATW (-13.65%) is worse than 67.07% of its industry peers.
MATW has a Return On Invested Capital of 0.25%. This is in the lower half of the industry: MATW underperforms 67.07% 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 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.25% | ||
| ROE | -13.65% | ||
| ROIC | 0.25% |
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 0.25%, MATW is doing worse than 67.07% of the companies in the same industry.
MATW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.50%, MATW is in line with its industry, outperforming 48.78% of the companies in the same industry.
MATW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.25% | ||
| PM (TTM) | N/A | ||
| GM | 29.5% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MATW is destroying value.
MATW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MATW has less shares outstanding
Compared to 1 year ago, MATW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.92 indicates that MATW is not a great score, but indicates only limited risk for bankruptcy at the moment.
MATW's Altman-Z score of 1.92 is in line compared to the rest of the industry. MATW outperforms 46.34% of its industry peers.
The Debt to FCF ratio of MATW is 22.79, which is on the high side as it means it would take MATW, 22.79 years of fcf income to pay off all of its debts.
MATW has a Debt to FCF ratio of 22.79. This is comparable to the rest of the industry: MATW outperforms 41.46% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that MATW has dependencies on debt financing.
MATW has a worse Debt to Equity ratio (1.76) than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 22.79 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.03
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.45 indicates that MATW should not have too much problems paying its short term obligations.
MATW's Current ratio of 1.45 is in line compared to the rest of the industry. MATW outperforms 46.34% of its industry peers.
MATW has a Quick Ratio of 1.45. 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 0.91, MATW is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for MATW have decreased strongly by -28.68% in the last year.
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 -4.53% 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)-28.68%
EPS 3Y-12.86%
EPS 5Y-8.1%
EPS Q2Q%-62.16%
Revenue 1Y (TTM)-4.53%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-10.7%
3.2 Future
The Earnings Per Share is expected to decrease by -8.12% on average over the next years.
The Revenue is expected to decrease by -9.20% on average over the next years.
EPS Next Y-21.74%
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
EPS Next 5YN/A
Revenue Next Year-0.27%
Revenue Next 2Y-6.13%
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
MATW is valuated correctly with a Price/Earnings ratio of 12.50.
84.15% of the companies in the same industry are more expensive than MATW, based on the Price/Earnings ratio.
MATW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 12.16, the valuation of MATW can be described as correct.
Based on the Price/Forward Earnings ratio, MATW is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MATW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
MATW's Enterprise Value to EBITDA ratio is in line with the industry average.
63.41% 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 | 22.05 | ||
| EV/EBITDA | 15.1 |
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
MATW has a Yearly Dividend Yield of 4.06%, which is a nice return.
In the last 3 months the price of MATW has falen by -21.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MATW's Dividend Yield is rather good when compared to the industry average which is at 2.12. MATW pays more dividend than 92.68% of the companies in the same industry.
MATW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 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-52.65%
EPS Next 2Y-4.14%
EPS Next 3Y-8.12%
24.25
-0.36 (-1.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.32%
Inst Owner Change0.54%
Ins Owners4.69%
Ins Owner Change13.34%
Market Cap751.02M
Analysts82.5
Price Target41.82 (72.45%)
Short Float %2.57%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend1.03
Dividend Growth(5Y)4.81%
DP-52.65%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.41%
Min EPS beat(2)-1.08%
Max EPS beat(2)41.9%
EPS beat(4)2
Avg EPS beat(4)21.88%
Min EPS beat(4)-1.96%
Max EPS beat(4)48.67%
EPS beat(8)5
Avg EPS beat(8)15.9%
EPS beat(12)9
Avg EPS beat(12)14.16%
EPS beat(16)13
Avg EPS beat(16)16.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.69%
Min Revenue beat(2)-6.81%
Max Revenue beat(2)-0.57%
Revenue beat(4)1
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-6.81%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.52%
Revenue beat(12)6
Avg Revenue beat(12)1.08%
Revenue beat(16)10
Avg Revenue beat(16)2.64%
PT rev (1m)10.81%
PT rev (3m)13.89%
EPS NQ rev (1m)-13.46%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.5%
EPS NY rev (3m)-2.92%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.42 | ||
| P/FCF | 22.05 | ||
| P/OCF | 9.47 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)1.94
EY8%
EPS(NY)1.99
Fwd EY8.22%
FCF(TTM)1.1
FCFY4.54%
OCF(TTM)2.56
OCFY10.56%
SpS57.98
BVpS14.12
TBVpS-12.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.25% | ||
| ROE | -13.65% | ||
| ROCE | 0.31% | ||
| ROIC | 0.25% | ||
| ROICexc | 0.26% | ||
| ROICexgc | 0.65% | ||
| OM | 0.25% | ||
| PM (TTM) | N/A | ||
| GM | 29.5% | ||
| FCFM | 1.9% |
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-Score3
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 22.79 | ||
| Debt/EBITDA | 7.76 | ||
| Cap/Depr | 47.71% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 0.09 | ||
| Cash Conversion | 79.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.92 |
F-Score3
WACC7.9%
ROIC/WACC0.03
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)-4.53%
Revenue growth 3Y2.43%
Revenue growth 5Y3.16%
Sales Q2Q%-10.7%
Revenue Next Year-0.27%
Revenue Next 2Y-6.13%
Revenue Next 3Y-9.2%
Revenue Next 5YN/A
EBIT growth 1Y-95.01%
EBIT growth 3Y-52.84%
EBIT growth 5Y-45.05%
EBIT Next Year327.12%
EBIT Next 3Y66.58%
EBIT Next 5YN/A
FCF growth 1Y17.87%
FCF growth 3Y-35.76%
FCF growth 5Y-18.27%
OCF growth 1Y-0.27%
OCF growth 3Y-21.32%
OCF growth 5Y-9.57%