Daily Stock Analysis: Matthews International

Matthews International Corp has the ticker symbol MATW and is a member of the Industrials sector as a conglomerate. This is my second report on Matthews International for this Vista portfolio. The previous report I delivered on September 24, 2020.

Matthews International Corp is a personal services company that primarily provides brand solution services, memorialization products, and industrial products in the United States and Europe. 

The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries. 

The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes a significant amount. Most of Matthews' revenue is generated from sales made in the U.S., while European customers also contribute a sizable percentage.

Matthews International Corporation was founded in 1850 and is headquartered in Pittsburgh, Pennsylvania.

Three key data points gauge dividend equities or funds like Matthews International Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

MATW Price

Matthews International Corp's price per share closed at $42.56 yesterday. One year ago its price was $21.51. Price per share has increased about 88% from the midst of last year's Covid market slump. 

Should Matthews International's stock trade in the range of $20.00 to $50.00 this year, its recent $42.56 price might rise by $5.44 to reach $28.00 by April 16, 2022. My estimate is however $ 1.00 lower than the median of two estimates from analysts tracking the stock.

MATW Dividends

Matthews's most recently declared quarterly dividend,  paid February 2nd, was $0.215 which equates to $0.86 annually and yields 2.02% at yesterday's $42.56 closing price. MATW has paid quarterly dividends increasing annually for 26 years.

MATW Returns

Adding the $0.86 annual MATW anticipated dividend to my $5.44 price upside estimate shows a $6.30  potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Matthews International Inc at $13.86 per share and we'd buy 23 shares of MATW stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.43 per share.

Subtract that maybe $0.43 brokerage cost from my estimated $6.30 gross gain per share results in a net gain of $5.87 X 23 shares = $135.01 for a 13.5% net gain on a $978.88 investment.

Thus, Matthews International Corp shows a possible 13.5% net gain including a 2.02% dividend yield. 

Over the next year at this time, a $1000 investment in MATW could generate $20.20 in cash dividends. And a single share bought at yesterday's closing price was about $42.50! So, if MATW is your kind of industrials conglomerate investment, their single share price is more than double the annual dividend income from $1,000 invested. This suggests one wit for the price to below $30 before adding Matthews International Corp to your portfolio.

All of the estimates above are speculation based on the past history of Matthews International Corp. Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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