Matthews International Corporation

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MATW : NASDAQ : Services
$61.82 | %
Today's Range: 61.39 - 62.85
Avg. Daily Volume: 111,900
08/26/16 - 4:00 PM ET

Financial Analysis


MATTHEWS INTL CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. MATTHEWS INTL CORP has average liquidity. Currently, the Quick Ratio is 1.40 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 7.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)382.06364.75
EBITDA ($mil)61.1356.39
EBIT ($mil)44.0141.21
Net Income ($mil)23.9223.14


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)85.9682.71
Total Assets ($mil)2126.821930.38
Total Debt ($mil)919.42688.4
Equity ($mil)694.1747.83


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin42.5141.29
EBITDA Margin16.015.45
Operating Margin11.5211.3
Sales Turnover0.690.73
Return on Assets2.812.65
Return on Equity8.626.85
Debt Q3 FY16 Q3 FY15
Current Ratio2.262.2
Debt/Capital0.570.48
Interest Expense6.264.85
Interest Coverage7.038.5


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)32.1132.97
Div / share0.150.13
EPS0.730.69
Book value / share21.6122.68
Institutional Own % n/a n/a
Avg Daily Volume111534.0103937.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 44.64 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.89 indicates valuation on par with the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.14. 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 34.45 Peers 44.64   MATW 14.67 Peers 18.67

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MATW is trading at a discount to its peers.

 

Discount. 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 discount 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 17.02 Peers 24.42   MATW 0.47 Peers 3.44

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 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 2.89 Peers 5.14   MATW 17.53 Peers -2.75

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.

 

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

MATW is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MATW 1.36 Peers 2.27   MATW 4.56 Peers 3.32

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MATW has a sales growth rate that significantly exceeds its peers.

 

 

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