Matthews International Corp

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MATW : NASDAQ : Services
$65.45 | %
Today's Range: 65.1 - 66.4
Avg. Daily Volume: 114200.0
03/24/17 - 4:00 PM ET

Financial Analysis


MATTHEWS INTL CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. MATTHEWS INTL CORP has strong liquidity. Currently, the Quick Ratio is 1.64 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.22% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)349.0354.23
EBITDA ($mil)42.4542.44
EBIT ($mil)27.2926.69
Net Income ($mil)9.094.61


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)106.4178.03
Total Assets ($mil)2107.342126.2
Total Debt ($mil)937.82913.85
Equity ($mil)687.76718.1


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.8141.3
EBITDA Margin12.1611.98
Operating Margin7.827.53
Sales Turnover0.70.68
Return on Assets3.372.52
Return on Equity10.357.47
Debt Q1 FY17 Q1 FY16
Current Ratio2.562.62
Debt/Capital0.580.56
Interest Expense6.155.84
Interest Coverage4.444.57


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)32.2532.97
Div / share0.170.15
EPS0.280.14
Book value / share21.3221.78
Institutional Own % n/a n/a
Avg Daily Volume123827.0126239.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 32.82 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 3.22 indicates valuation on par with the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.81. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MATTHEWS INTL CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MATW 31.66 Peers 32.82   MATW 15.07 Peers 16.41

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MATW is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MATW is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MATW 17.07 Peers 29.33   MATW 0.40 Peers 1.36

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MATW is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MATW trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MATW 3.22 Peers 4.81   MATW 34.78 Peers 57.24

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MATW is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MATW is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MATW 1.50 Peers 2.43   MATW 2.68 Peers 10.17

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MATW is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MATW significantly trails its peers on the basis of sales growth

 

 

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