Matthews International Corp
MATW
Nonferrous Foundries (Castings)
Mkt Cap
$867.6MPE
26.22Debt
$848.2MCash
$45.5MEV
$1.67BFCF
$13.8MP/E Ratio
26.22Debt
$848.2MCash
$45.5MEV
$1.67BFCF
$13.8MCharts data: {"Earnings":[{"time":"2014-09-29","value":43553000},{"time":"2015-09-29","value":63288000},{"time":"2016-09-29","value":66161000},{"time":"2017-09-29","value":73933000},{"time":"2018-09-29","value":107111000},{"time":"2019-09-29","value":-38889000},{"time":"2020-09-29","value":-87652000},{"time":"2021-09-29","value":2858000},{"time":"2022-09-29","value":-99828000},{"time":"2023-09-29","value":39136000}],"Sales":[{"time":"2014-09-29","value":1106597000},{"time":"2015-09-29","value":1426068000},{"time":"2016-09-29","value":1480464000},{"time":"2017-09-29","value":1515608000},{"time":"2018-09-29","value":1602580000},{"time":"2019-09-29","value":1537276000},{"time":"2020-09-29","value":1498306000},{"time":"2021-09-29","value":1671030000},{"time":"2022-09-29","value":1762403000},{"time":"2023-09-29","value":1880896000}],"Net Margins":[{"time":"2014-09-29","value":0.03935759811385717},{"time":"2015-09-29","value":0.04437937040870421},{"time":"2016-09-29","value":0.04468936765770731},{"time":"2017-09-29","value":0.048781083235242884},{"time":"2018-09-29","value":0.06683660098091827},{"time":"2019-09-29","value":-0.02529734413338919},{"time":"2020-09-29","value":-0.05850073349502705},{"time":"2021-09-29","value":0.0017103223760195807},{"time":"2022-09-29","value":-0.05664311738007709},{"time":"2023-09-29","value":0.020807104699037054}],"Assets":[{"time":"2014-09-29","value":2031735000},{"time":"2015-09-29","value":2163018000},{"time":"2016-09-29","value":2091041000},{"time":"2017-09-29","value":2244649000},{"time":"2018-09-29","value":2375485000},{"time":"2019-09-29","value":2190603000},{"time":"2020-09-29","value":2072633000},{"time":"2021-09-29","value":2032078000},{"time":"2022-09-29","value":1882771000},{"time":"2023-09-29","value":1887381000}],"Stockholders Equity":[{"time":"2014-09-29","value":782893000},{"time":"2015-09-29","value":734046000},{"time":"2016-09-29","value":709334000},{"time":"2017-09-29","value":790259000},{"time":"2018-09-29","value":868714000},{"time":"2019-09-29","value":719236000},{"time":"2020-09-29","value":611433000},{"time":"2021-09-29","value":636548000},{"time":"2022-09-29","value":487352000},{"time":"2023-09-29","value":525668000}],"ROE":[{"time":"2014-09-29","value":0.05563084610540649},{"time":"2015-09-29","value":0.086218029932729},{"time":"2016-09-29","value":0.0932719988045124},{"time":"2017-09-29","value":0.09355540398780653},{"time":"2018-09-29","value":0.12329834675163517},{"time":"2019-09-29","value":-0.054069874144230826},{"time":"2020-09-29","value":-0.1433550364471659},{"time":"2021-09-29","value":0.004489842085750014},{"time":"2022-09-29","value":-0.2048375712011031},{"time":"2023-09-29","value":0.07445003310074039}],"ROA":[{"time":"2014-09-29","value":0.0407981355836268},{"time":"2015-09-29","value":0.050975997425818924},{"time":"2016-09-29","value":0.05718587057833873},{"time":"2017-09-29","value":0.054644623725134754},{"time":"2018-09-29","value":0.05700730587648417},{"time":"2019-09-29","value":0.004703271199756414},{"time":"2020-09-29","value":-0.030971715687244196},{"time":"2021-09-29","value":0.020685229602406995},{"time":"2022-09-29","value":-0.02333634839287412},{"time":"2023-09-29","value":0.04668744678472444}]}
Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. It operates through three segments: Memorialization, Industrial Technologies, and SGK Brand Solutions. The Memorialization segment provides bronze and granite memorials, upright granite memorials and monuments, concrete burial vaults, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features, and statues, as well as bronze plaques, emblems, lights, photo ceramics, caskets, and cremation and incineration equipment for the cemetery and funeral home industries. The Industrial Technologies segment designs, manufactures, services, and distributes high-tech custom energy storage solutions, and product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. This segment also provides engineered calendaring, laminating, and coating equipment; stand-alone marking products; laser and ink-jet printing systems; and spare parts, and calendar and coating-roller refurbishing and retrofits. The SGK Brand solutions segment provides brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services for the consumer goods and retail industries. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.
Sector
DCF
Discounted Cash Flow Valuation of Matthews International Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $13.8M | $12.61M | $11.52M | $10.53M | $9.618M | $8.789M | $8.031M | $7.339M | $6.706M | $6.128M | $5.599M | $55.99M |
| DCF | $10.96M | $8.71M | $6.921M | $5.499M | $4.37M | $3.472M | $2.759M | $2.192M | $1.742M | $1.384M | $13.84M | |
| Value | $61.85M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -15%
Earnings Stability -16%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 4.4% | 4.5% | 4.9% | 6.7% | -2.5% | -5.9% | 0.17% | -5.7% | 2.1% | 1.8% |
| ROA | 5.1% | 5.7% | 5.5% | 5.7% | 0.47% | -3.1% | 2.1% | -2.3% | 4.7% | 4.2% |
| ROE | 8.6% | 9.3% | 9.4% | 12% | -5.4% | -14% | 0.45% | -20% | 7.4% | 6.5% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -0.85%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.75%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +1.25%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.24%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -3.33%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.57%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 9.86 | 9.13 | 9.01 | 9.50 | 10.53 | 5.92 | 5.98 | 12.23 | 27.45 | 61.49 |
| Debt Equity | 1.25 | 1.27 | 1.19 | 1.14 | 1.37 | 1.41 | 1.21 | 1.65 | 1.51 | 1.67 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | -47% | -180% | - | - | - | -180% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 61.49.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 2.71.
What is the Graham’s Stability?
Graham’s Stability measure stands at -1.85.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 3.5% | 3.3% | 7.9% | 6.7% | -1.2% |
| Net Income | -7.2% | -18% | - | - | 0.59% |
| Stockholders Equity | -4.2% | -9.6% | -4.9% | 7.9% | -0.72% |
| FCF | -16% | -23% | -42% | -56% | -9.3% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +3.25%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -1.23%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -18.24%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +0.59%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -9.56%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.72%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -22.64%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -9.27%.