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Matthews International
(NASDAQ:MATW)
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Rating:45Neutral
Price Target:
$18.50
â–¼(-12.03% Downside)
Action:Reiterated
Date:10/01/26
MATW scores low primarily due to weak financial performance—net losses, shrinking revenue, and especially negative operating and free cash flow alongside still-elevated leverage. Technical indicators reinforce downside momentum with the stock trading below all major moving averages and a negative MACD. A high dividend yield provides some valuation support, but guidance was reduced and near-term earnings/cash headwinds outweighed longer-term strategic positives.
Positive Factors
Memorialization stability
Memorialization is showing resilience despite industry volume pressure, with sales growth and improved year-to-date EBITDA. This segment provides a more stable earnings base, and management is targeting record full-year adjusted EBITDA, supporting durability within the portfolio.
Negative Factors
Persistent cash consumption
Negative operating and free cash flow indicate that current operations are consuming rather than generating cash. This weakens internal funding capacity, limits flexibility for acquisitions or investment, and increases dependence on balance-sheet actions while leverage remains material.
Read all positive and negative factors
Positive Factors
Negative Factors
Memorialization stability
Memorialization is showing resilience despite industry volume pressure, with sales growth and improved year-to-date EBITDA. This segment provides a more stable earnings base, and management is targeting record full-year adjusted EBITDA, supporting durability within the portfolio.
Read all positive factors
Matthews International (MATW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$580.88M
Dividend Yield5.48%
Average Volume (3M)1.09M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-31.82%
EPS Growth55.14%
CountryUS
Employees5,500
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-0.93
Shares Outstanding31,213,173
10 Day Avg. Volume1,049,655
30 Day Avg. Volume1,085,038
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.56
Price to Sales (P/S)0.50
P/FCF Ratio-12.67
Enterprise Value/Market Cap2.47
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda13.16
Forecast
1Y Price Target
$24.00Price Target Upside14.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.79
Revenue Forecast (FY)$1.02B
Matthews International Business Overview & Revenue Model
Company Description
Operating globally, Matthews International Corporation specializes in brand solutions, memorialization items, and advanced industrial technologies. The company's operations are divided into three principal segments: SGK Brand Solutions, Memorializ...
How the Company Makes Money
Matthews International makes money primarily by selling products, equipment, and services across its operating segments. In Memorialization, revenue is generated from the manufacture and sale of caskets and other funeral home products, cemetery me...
Matthews International Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Negative
The call described meaningful near-term operational and financial challenges: a significant YoY decline in consolidated revenue and profitability, engineering order delays, margin compression in Memorialization from input-cost inflation and historically low death rates, cash outflows, and delays in Propelis synergy capture. Offsetting these negatives are strategic, longer-term positives including strong commercial interest and pilot activity for DBE technology, product identification momentum (Axian and MPERIA), an accretive Dodge acquisition, expected Propelis EBITDA scaling to $130M run-rate, and active cost-reduction and portfolio actions to improve future margins and liquidity. Given the combination of pronounced near-term weaknesses that materially impacted earnings and cash flow versus encouraging strategic developments that are longer-term and not yet fully monetized, the negatives outweigh the positives for this quarter.Positive Updates
DBE Mass Production Momentum
Commissioning of a new mass-production machine for DBE testing with reservations starting in October; growing interest from major European, Japanese, Korean and U.S. OEMs and battery suppliers, and positive early validation for DBE commercialization potential (no firm revenue timeline but customer commitments could convert in 2027).
Negative Updates
Consolidated Sales and Profitability Decline
Consolidated sales for Q3 were $246M vs $349M a year ago (approx -29.5% YoY), and the company reported a net loss of $23.7M (loss per share $0.75) versus net income of $15.4M (EPS $0.49) in the prior year.
Read all updates
Q3-2026 Updates
Positive
Negative
DBE Mass Production Momentum
Commissioning of a new mass-production machine for DBE testing with reservations starting in October; growing interest from major European, Japanese, Korean and U.S. OEMs and battery suppliers, and positive early validation for DBE commercialization potential (no firm revenue timeline but customer commitments could convert in 2027).
Read all positive updates
Company Guidance
Management reduced consolidated adjusted EBITDA guidance to $158–$162 million for fiscal 2026 (which incorporates Matthews’ estimated 40% share of Propelis’ results), citing a Propelis synergy-timing shortfall of about $5 million; Propelis is still expected to reach an annualized EBITDA run rate of roughly $130 million by the end of calendar 2026 (triggering a market process to begin within 12 months) and Matthews’ 40% interest would imply roughly $52 million at that run rate, while Memorialization is still being targeted at approximately $175 million of full‑year adjusted EBITDA (a record), and company actions to support the guidance include $10 million of annualized cost reductions in European engineering and $5 million of corporate cost savings next year.Matthews International Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
43
Neutral
Cash Flow
21
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.50B | 1.80B | 1.88B | 1.76B | 1.67B |
| Gross Profit | 405.68M | 507.59M | 529.71M | 577.67M | 522.28M | 541.83M |
| EBITDA | 109.19M | 150.85M | 75.65M | 182.09M | 27.56M | 171.43M |
| Net Income | -29.36M | -24.47M | -59.66M | 39.29M | -99.77M | 2.91M |
Balance Sheet | ||||||
| Total Assets | 1.51B | 1.69B | 1.83B | 1.89B | 1.88B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 37.60M | 32.43M | 40.82M | 42.10M | 71.41M | 49.18M |
| Total Debt | 628.15M | 764.12M | 839.16M | 864.35M | 872.88M | 846.13M |
| Total Liabilities | 1.02B | 1.21B | 1.40B | 1.36B | 1.40B | 1.40B |
| Stockholders Equity | 485.97M | 480.94M | 437.16M | 525.67M | 487.08M | 636.40M |
Cash Flow | ||||||
| Free Cash Flow | -81.97M | -59.37M | 34.06M | 28.93M | 65.54M | 128.50M |
| Operating Cash Flow | -59.22M | -23.55M | 79.28M | 79.52M | 126.86M | 162.81M |
| Investing Cash Flow | 273.78M | 159.59M | -46.97M | -58.73M | -80.85M | -12.99M |
| Financing Cash Flow | -197.33M | -144.27M | -35.04M | -50.20M | -37.21M | -122.85M |
Matthews International Technical Analysis
Negative
21.03
Price Trends
21.38
Negative
23.91
Negative
24.96
Negative
Market Momentum
-0.63
Negative
33.98
Neutral
48.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATW, the sentiment is Negative. The current price of 21.03 is above the 20-day moving average (MA) of 19.52, below the 50-day MA of 21.38, and below the 200-day MA of 24.96, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MATW.
Matthews International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.03B | 18.46 | 29.84% | 0.64% | 3.80% | 138.85% | |
69 Neutral | $65.84B | 8.06 | 45.58% | 1.86% | -2.41% | 53.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $82.49B | 28.26 | 77.12% | 1.92% | 2.35% | -21.55% | |
58 Neutral | $370.29M | -4.07 | -27.83% | 4.15% | 5.09% | 14.61% | |
48 Neutral | $816.31M | -5.24 | -21.01% | 214.04% | 8.37% | 51.01% | |
45 Neutral | $580.88M | -20.01 | -5.81% | 5.48% | -31.82% | 55.14% |
* Industrials Sector Average
MATW
Matthews International
18.61
-2.60
-12.25%
MMM
3M
159.96
11.60
7.82%
CODI
Compass Diversified Holdings
10.85
2.37
27.95%
HON
Honeywell International
207.73
11.19
5.69%
NNBR
NN
3.95
2.06
108.99%
VMI
Valmont
467.81
73.01
18.49%
Matthews International Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Matthews International Announces Board Changes and Leadership Transition
Positive
Oct 1, 2026
Matthews International Corporation, a diversified industrial and memorialization company with global operations, has been refocusing on its core Industrial Technologies and Memorialization businesses while maintaining a significant stake in the Pr...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Matthews International Realigns Credit Facility Post-Divestiture
Neutral
Sep 4, 2026
On September 1, 2026, Matthews International entered into a Ninth Amendment to its Third Amended and Restated Loan and Security Agreement, realigning its Credit Facility with the company’s post-divestiture structure. Key changes include excl...
Business Operations and StrategyExecutive/Board Changes
Matthews International Names New President and CEO
Positive
Aug 11, 2026
On August 11, 2026, Matthews International announced that its board had appointed Michael J. Whitehead as president and chief executive officer, effective August 31, 2026, succeeding long‑time leader Joseph C. Bartolacci following his decisi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Matthews International Cuts 2026 Outlook Amid Operational Challenges
Negative
Aug 7, 2026
On August 6, 2026, Matthews International reported fiscal 2026 third-quarter results, highlighting higher Memorialization sales driven by the accretive Dodge Company acquisition, but pressure from lower U.S. casketed deaths and rising input costs....
Business Operations and StrategyExecutive/Board Changes
Matthews International Announces CEO Retirement and Succession Plan
Neutral
Aug 4, 2026
On July 29, 2026, President and Chief Executive Officer Joseph C. Bartolacci informed Matthews International’s Board of his decision to retire as CEO and step down as a director after nearly three decades at the company, including 20 years a...
Business Operations and StrategyDividends
Matthews International Declares Quarterly Dividend, Signals Stability
Positive
Jul 30, 2026
On July 29, 2026, Matthews International announced that its Board of Directors declared a quarterly cash dividend of $0.255 per share on the company’s common stock at its regular meeting. The dividend will be paid on August 24, 2026 to share...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.