📊 MATW Key Takeaways
Is Matthews International Corp. (MATW) a Good Investment?
Matthews International faces significant operational headwinds with 16.6% revenue decline and alarming negative operating cash flow of -$67.4M despite positive net income, indicating working capital deterioration. High leverage of 1.12x Debt/Equity combined with declining revenue creates financial stress, while poor returns on capital (ROE 4.3%, ROA 1.4%) suggest capital inefficiency.
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
- Positive operating income of $94.3M and gross margin of 37.1% demonstrate underlying profitability in core operations
- Current ratio of 1.64x and interest coverage of 3.9x provide near-term financial stability
- Operating margin of 17.4% is respectable for manufacturing sector
- 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 -$67.4M and negative free cash flow of -$76.7M indicate operational stress despite positive accounting earnings
- Revenue decline of 16.6% YoY in cyclical foundries sector with high fixed costs raises structural demand concerns
- Quick ratio of 0.97x below 1.0 combined with 1.12x Debt/Equity creates liquidity vulnerability if operational performance deteriorates further
- Extremely thin net margin of 4.0% leaves no margin for error; any further revenue decline compresses profitability rapidly
- EPS growth driven by share buybacks masking flat net income growth indicates underlying earnings weakness
- 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 (critical turnaround indicator)
- Revenue stabilization and year-over-year growth recovery
- Debt-to-EBITDA ratio and debt paydown capacity
- Quick ratio and working capital management (inventory and receivables)
- Interest coverage ratio (maintain above 3.0x minimum)
- 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. shows some fundamental concerns 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 |
|---|---|---|---|
| Q2 2026 | $258.6M | -$8.9M | $-0.29 |
| 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 |
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 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MATW's key strengths?
Claude: Positive operating income of $94.3M and gross margin of 37.1% demonstrate underlying profitability in core operations. Current ratio of 1.64x and interest coverage of 3.9x provide near-term financial stability. 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 -$67.4M and negative free cash flow of -$76.7M indicate operational stress despite positive accounting earnings. Revenue decline of 16.6% YoY in cyclical foundries sector with high fixed costs raises structural demand concerns. 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 $543.4M.
Does MATW pay dividends?
Matthews International Corp. pays dividends, with $17.5M 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 $0.69.
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 May 2026, Matthews International Corp. has a SELL rating with 79% 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 4.3% (sector avg: 15%), net margin of 4.0% (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 at or below sector average. Always conduct your own research.
What is MATW's free cash flow?
Matthews International Corp.'s operating cash flow is $-67.4M, with capital expenditures of $9.3M. FCF margin is -14.1%.
How does MATW compare to other Market stocks?
Vs Default sector averages: Net margin 4.0% (avg: 12%), ROE 4.3% (avg: 15%), current ratio 1.64 (avg: 1.8).