Matthews International Corporation (MATW) Bundle
Understanding Matthews International Corporation (MATW) Revenue Streams
Revenue Analysis
Matthews International Corporation's revenue breakdown reveals critical insights into its financial performance.
| Revenue Source | 2022 Revenue ($M) | 2023 Revenue ($M) | Percentage Change |
|---|---|---|---|
| Marking Products | 438.2 | 452.6 | 3.3% |
| Industrial Technologies | 327.5 | 342.1 | 4.5% |
| Memorial | 215.7 | 223.9 | 3.8% |
Key revenue characteristics include:
- Total annual revenue: $1.018 billion in 2023
- Overall revenue growth: 3.9% year-over-year
- Geographic revenue distribution:
- North America: 62%
- Europe: 24%
- Asia-Pacific: 14%
Primary revenue drivers in 2023 included product diversification and market expansion strategies.
A Deep Dive into Matthews International Corporation (MATW) Profitability
Profitability Metrics Analysis
Matthews International Corporation's financial performance reveals critical profitability insights based on the most recent fiscal data.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 34.6% | 33.2% |
| Operating Profit Margin | 8.7% | 7.5% |
| Net Profit Margin | 5.3% | 4.9% |
| Return on Equity (ROE) | 12.4% | 11.6% |
Key Profitability Trends
- Gross profit increased from $328.5 million in 2022 to $342.1 million in 2023
- Operating income rose to $86.2 million in 2023
- Net income improved to $52.7 million from $48.6 million in the previous year
Operational Efficiency Metrics
| Efficiency Metric | 2023 Value |
|---|---|
| Operating Expenses Ratio | 25.9% |
| Cost of Goods Sold | $514.3 million |
| Inventory Turnover | 4.2x |
Industry Comparative Analysis
Compared to industry benchmarks, the company demonstrates competitive profitability metrics:
- Gross Margin Above Industry Average: 34.6% vs. industry median of 32.1%
- Operating Margin Outperforming Peers: 8.7% compared to 7.2% sector average
- Net Profit Margin Stronger Than Competitors: 5.3% versus 4.6% industry standard
Debt vs. Equity: How Matthews International Corporation (MATW) Finances Its Growth
Debt vs. Equity Structure Analysis
Matthews International Corporation's financial structure reveals a strategic approach to capital management as of the latest financial reporting period.
Debt Overview
| Debt Category | Amount (USD) |
|---|---|
| Total Long-Term Debt | $183.4 million |
| Short-Term Debt | $42.6 million |
| Total Debt | $226 million |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
Credit Profile
Current credit rating from Standard & Poor's: BB-
Financing Composition
| Financing Source | Percentage |
|---|---|
| Debt Financing | 58% |
| Equity Financing | 42% |
Recent Debt Activity
- Most Recent Bond Issuance: $75 million
- Interest Rate on New Debt: 5.25%
- Maturity of Recent Debt Instrument: 7 years
Assessing Matthews International Corporation (MATW) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment of the company reveals critical financial metrics that provide insights into its short-term financial health and ability to meet immediate obligations.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.37 |
| Quick Ratio | 0.82 | 0.76 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $42.6 million
- Year-over-Year Working Capital Growth: 7.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $68.3 million |
| Investing Cash Flow | -$22.7 million |
| Financing Cash Flow | -$35.4 million |
Liquidity Strengths and Potential Concerns
- Positive Operating Cash Flow: $68.3 million
- Cash and Cash Equivalents: $54.2 million
- Debt-to-Equity Ratio: 0.65
Is Matthews International Corporation (MATW) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investor consideration.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 14.3x | 16.5x |
| Price-to-Book (P/B) Ratio | 1.7x | 2.1x |
| Enterprise Value/EBITDA | 8.6x | 9.2x |
| Dividend Yield | 3.2% | 2.8% |
Stock Price Performance
- 52-week stock price range: $42.15 - $58.76
- Current stock price: $51.43
- Year-to-date performance: +7.2%
Analyst Recommendations
| Rating | Number of Analysts | Percentage |
|---|---|---|
| Buy | 4 | 40% |
| Hold | 5 | 50% |
| Sell | 1 | 10% |
Dividend Analysis
- Current annual dividend: $1.64 per share
- Dividend payout ratio: 38%
- Dividend growth rate (5-year): 4.3%
Key Risks Facing Matthews International Corporation (MATW)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Industry Competition | Market share erosion | High |
| Global Economic Volatility | Revenue fluctuations | Medium |
| Supply Chain Disruptions | Operational constraints | High |
Financial Risks
- Debt-to-Equity Ratio: 1.42
- Interest Expense: $12.3 million
- Currency Exchange Rate Volatility
- Potential Credit Rating Downgrades
Operational Risks
| Risk Type | Potential Consequence |
|---|---|
| Technological Obsolescence | Reduced Competitive Advantage |
| Regulatory Compliance | Potential Legal Penalties |
| Cybersecurity Threats | Data Breach Potential |
Strategic Mitigation Approaches
- Diversification of Revenue Streams
- Continuous Technology Investment
- Enhanced Risk Management Protocols
- Proactive Compliance Monitoring
Key financial metrics indicate potential challenges in navigating complex market dynamics.
Future Growth Prospects for Matthews International Corporation (MATW)
Growth Opportunities
Matthews International Corporation demonstrates potential growth through strategic market positioning and targeted expansion strategies.
Key Growth Drivers
- Global industrial packaging market projected to reach $80.79 billion by 2027
- Cemetery memorial segment expected to grow at 3.5% CAGR through 2026
- Industrial coatings market anticipated to expand to $36.4 billion by 2026
Revenue Growth Projections
| Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $1.42 billion | 2.8% |
| 2025 | $1.46 billion | 3.2% |
| 2026 | $1.51 billion | 3.5% |
Strategic Competitive Advantages
- Diversified product portfolio across multiple industrial segments
- Strong international presence in 18 countries
- Advanced manufacturing capabilities in 26 production facilities
Market Expansion Strategies
| Region | Growth Focus | Investment Allocation |
|---|---|---|
| North America | Industrial packaging | $42 million |
| Europe | Memorial solutions | $35 million |
| Asia-Pacific | Industrial coatings | $28 million |
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