Daily Stock Analysis: Matthews International - November 2022

By Fredrik Arnold

Thursday, November 3, 2022 5:23 AM EDT

Matthews International Corp, has the ticker symbol (MATW). This is my very first report on Matthews for my Viking portfolio. However I have reported on and selected MATW for one of my previous seven portfolios.

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.

The Industrial Technologies segment provides marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products for the warehousing and industrial industries.

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 based in Pittsburgh, Pennsylvania.

Three key data points gauge

Matthews International Corporation:

(1) Price

(2) Dividends

(3) Returns

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

MATW Price

Matthews’ price per share was $26.24 at Wednesday’s market close. However, in the past year, Matthews’ share price fell by $10.61 or about 29%.

If Matthews’ stock trades in the range of $16.00 to $36.00 this next year, its recent $26.24 per share price might reach $30.00 by next year. My upside increase estimate of $3.76 is $15.50 under the median of annual price target estimates from two analysts covering MATW for brokerages.

MATW Dividends

Matthews’ most recently declared quarterly dividend of $0.22 per share equals $0.88 annually and casts a yield of 3.35%.

MATW Returns

Adding the $0.88 annual

MATW dividend to my one-year price upside estimate of $3.76 shows a $4.64 potential gross gain per share.

At Wednesday’s $26.24 closing price, a little over $1000 would buy 38 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $4.64 gross gain per share results in a net gain of $4.38 X 38 shares = $166.44 for a 16.6% net gain including a 3.35% annual yield.

In a year our $1K investment in shares of Matthews International Corporation would generate $33.50 in cash dividends. Of course, a single share of MATW stock at Tuesday's $26.24 share price is $7.26 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy MATW shares based on their dividends for the years 2022-23. The dividend from $1K invested is $7.26 more than MATW’s single share price. Consider yourself alerted. Now is the time for Matthews International Corporation.

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

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Disclaimer: 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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