I’ve been keeping an eye on Matthews International Corporation (NASDAQ:MATW) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MATW has a lot to offer. Basically, it is a well-regarded dividend payer with a an impressive track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Matthews International here.
Undervalued with proven track record and pays a dividend
Over the past year, MATW has grown its earnings by 44%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, MATW also outperformed its industry, which delivered a growth of 41%. This is an optimistic signal for the future. MATW’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MATW’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, MATW’s share price is trading below the group’s average. This further reaffirms that MATW is potentially undervalued.
For those seeking income streams from their portfolio, MATW is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%.
For Matthews International, there are three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for MATW’s future growth? Take a look at our free research report of analyst consensus for MATW’s outlook.
- Financial Health: Are MATW’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MATW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.