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:
We started the process of determining a valid price forecast for Matthews International Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Matthews International Corp ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Matthews International Corp, consider:
The company's balance sheet shows it gets 41% of its capital from equity, and 59% of its capital from debt. Its equity weight surpasses that of merely 22.92% of free cash flow generating stocks in the Industrials sector.
Matthews International Corp's weighted average cost of capital (WACC) is 14%; for context, that number is higher than 90.61% of tickers in our DCF set.
Matthews International Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.42. This coverage rate is greater than that of just 15.68% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ADP, AEGN, CNI, IEX, and VRSK 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.