Matthews International Corporation - (MATW) Company Bio
Matthews International Corporation provides memorialization products and industrial automation solutions. Brand solutions include graphics imaging products and services, and merchandising solutions. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment for the cemetery and funeral home industries. Industrial automation solutions include marking products and fulfillment systems. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.
MATW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Matthews International Corp. To summarize, we found that Matthews International Corp ranked in the 49th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8.5%. As for the metrics that stood out in our discounted cash flow analysis of Matthews International Corp, consider:
40% of the company's capital comes from equity, which is greater than only 22.62% of stocks in our cash flow based forecasting set.
Matthews International Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.32. This coverage rate is greater than that of merely 11.9% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 90.95% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WTS, PH, EME, JBT, and WWD can be thought of as valuation peers to MATW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Matthews International Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
It is now my pleasure to introduce your host, Mr. Bill Wilson, Senior Director of Corporate Development. This is Bill Wilson, Senior Director of Corporate Development. With us today are Joe Bartolacci, President and Chief Executive Officer; and Steve Nicola, Chief Financial Officer.