📊 MATW Key Takeaways
Is Matthews International Corp. (MATW) a Good Investment?
Matthews International faces significant operational challenges evidenced by negative free cash flow of -$57.2M and declining revenues (-16.6% YoY), despite maintaining healthy profit margins. The company's high debt load ($529.8M) relative to equity, combined with deteriorating cash generation, raises concerns about financial sustainability and debt servicing capacity.
Matthews International shows respectable reported profitability, with solid gross and net margins and stable net income despite a difficult revenue backdrop. However, the quality of those earnings is weakened by a 16.6% revenue decline, sharply negative operating and free cash flow, and a fairly leveraged balance sheet, which limits the attractiveness of the fundamentals. The company appears financially viable, but the current mix of shrinking sales and weak cash generation argues for caution rather than conviction.
Why Buy Matthews International Corp. Stock? MATW Key Strengths
- Strong gross margin of 35.0% and operating margin of 34.2% demonstrate pricing power and operational efficiency
- Healthy interest coverage ratio of 4.0x indicates adequate ability to service debt obligations
- Moderate current ratio of 1.51x suggests reasonable short-term liquidity position
- Reported margins remain solid, including 35.0% gross margin and 15.3% net margin
- Net income held stable year over year and diluted EPS improved materially
- Liquidity is adequate with a 1.51x current ratio
MATW Stock Risks: Matthews International Corp. Investment Risks
- Negative operating cash flow of -$52.0M and free cash flow of -$57.2M indicate the company is burning cash despite profitability
- Revenue declining 16.6% year-over-year signals weakness in underlying business demand and market conditions
- High leverage with debt-to-equity ratio of 0.98x and $529.8M long-term debt leaves limited financial flexibility for downturns
- Quick ratio of 0.91x below 1.0x suggests potential liquidity stress without inventory conversion
- Revenue contraction of 16.6% points to weak underlying growth
- Operating cash flow and free cash flow are deeply negative, raising concerns about earnings quality
- Leverage is meaningful with debt/equity near 1.0x and only moderate 4.0x interest coverage
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory to validate profitability
- Revenue stabilization - need to see YoY growth resume from current -16.6% decline
- Debt reduction progress - critical to lower leverage given weak cash generation
- Operating cash flow and free cash flow recovery
- Revenue stabilization and organic sales growth
Matthews International Corp. (MATW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Matthews International Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MATW Profit Margin, ROE & Profitability Analysis
MATW vs Market Sector: How Matthews International Corp. Compares
How Matthews International Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Matthews International Corp. Stock Overvalued? MATW Valuation Analysis 2026
Based on fundamental analysis, Matthews International Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Matthews International Corp. Balance Sheet: MATW Debt, Cash & Liquidity
MATW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Matthews International Corp.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.26 reflects profitable operations.
MATW Revenue Growth, EPS Growth & YoY Performance
MATW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $284.8M | -$3.5M | $-0.11 |
| Q3 2025 | $349.4M | $1.8M | $0.06 |
| Q2 2025 | $427.6M | $6.7M | $0.22 |
| Q1 2025 | $401.8M | -$2.3M | $-0.07 |
| Q3 2024 | $427.8M | $1.8M | $0.06 |
| Q2 2024 | $471.2M | $6.7M | $0.22 |
| Q1 2024 | $449.2M | -$2.3M | $-0.07 |
| Q3 2023 | $421.7M | $2.9M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Matthews International Corp. Dividends, Buybacks & Capital Allocation
MATW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Matthews International Corp. (CIK: 0000063296)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MATW
What is the AI rating for MATW?
Matthews International Corp. (MATW) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MATW's key strengths?
Claude: Strong gross margin of 35.0% and operating margin of 34.2% demonstrate pricing power and operational efficiency. Healthy interest coverage ratio of 4.0x indicates adequate ability to service debt obligations. ChatGPT: Reported margins remain solid, including 35.0% gross margin and 15.3% net margin. Net income held stable year over year and diluted EPS improved materially.
What are the risks of investing in MATW?
Claude: Negative operating cash flow of -$52.0M and free cash flow of -$57.2M indicate the company is burning cash despite profitability. Revenue declining 16.6% year-over-year signals weakness in underlying business demand and market conditions. ChatGPT: Revenue contraction of 16.6% points to weak underlying growth. Operating cash flow and free cash flow are deeply negative, raising concerns about earnings quality.
What is MATW's revenue and growth?
Matthews International Corp. reported revenue of $284.8M.
Does MATW pay dividends?
Matthews International Corp. pays dividends, with $9.5M distributed to shareholders in the trailing twelve months.
Where can I find MATW SEC filings?
Official SEC filings for Matthews International Corp. (CIK: 0000063296) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MATW's EPS?
Matthews International Corp. has a diluted EPS of $1.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MATW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Matthews International Corp. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MATW stock overvalued or undervalued?
Valuation metrics for MATW: ROE of 8.0% (sector avg: 15%), net margin of 15.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MATW stock in 2026?
Our dual AI analysis gives Matthews International Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MATW's free cash flow?
Matthews International Corp.'s operating cash flow is $-52.0M, with capital expenditures of $5.3M. FCF margin is -20.1%.
How does MATW compare to other Market stocks?
Vs Default sector averages: Net margin 15.3% (avg: 12%), ROE 8.0% (avg: 15%), current ratio 1.51 (avg: 1.8).