Matthews International Corporation
2 North Shore Center
Pittsburgh, PA 15212-5851
Web Site: http://www.matw.com
Mr. Joseph C. Bartolacci , 50
Chief Exec. Officer, Pres, Director and Member of Exec. Committee
Mr. Steven F. Nicola , 50
Chief Financial Officer, Sec. and Treasurer
Mr. Franz J. Schwarz , 62
Pres of Graphics Europe
Mr. James P. Doyle , 59
Group Pres of Memorialization
Matthews International Corporation designs, manufactures, and markets memorialization products and brand solutions for the cemetery and funeral home industries in the United States, Mexico, Canada, Europe, Australia, and Asia. It operates in six segments: Bronze, Casket, Cremation, Graphics Imaging, Marking Products, and Merchandising Solutions. The Bronze segment manufactures cast bronze memorials and other memorialization products; and cast and etched architectural products, as well as builds mausoleums. The Casket segment manufactures and distributes wood and metal caskets; and casket components, such as stamped metal parts, metal locking mechanisms for gasketed metal caskets, adjustable beds, interior panels, and plastic ornamental hardware, as well as provides assortment planning and merchandising, and display products to funeral service businesses. The Cremation segment offers various products and services, including cremation equipment; cremation caskets; equipment service and repair; and supplies and urns. The Graphics Imaging segment provides brand management, pre-press services, printing plates, gravure cylinders, steel bases, embossing tools, special purpose machinery, engineering and print process assistance, print production management, digital asset management, content management, and package design services. The Marking Products segment offers a range of marking and coding products and related consumables, and industrial automation products for identifying, tracking, and conveying consumer and industrial products, components, and packaging containers. The Merchandising Solutions segment provides merchandising displays and systems comprising permanent and temporary displays, custom store fixtures, brand concept shops, interactive kiosks, custom packaging, and screen and digitally printed promotional signage, as well as offers design and engineering services. Matthews International was founded in 1850 and is based in Pittsburgh, Pennsylvania.
52-Week Price Range:
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Shares Outstanding at 12/31/09:
What Investors Think About Matthews International: http://www.fool.com/investing/general/2010/02/24/what-investors-think-about-matthews-international.aspx
Three Dividend Stocks Worth Revisiting:
First on our list is Matthews International (MATW). Matthews International was initially recommended on March 31, 2009 near the lows of the bear market. At the time, according to Dow Theory, we felt that the company had upside targets of $31, $40, and $49. On August 4, 2009, we issued a sell recommendation of MATW when it was trading at $31.95, a gain of 10% in four months. Subsequently, MATW was able to get within $0.50 of the $40 target. After hitting the $39 range, MATW has fallen to the current level of $32.50. MATW has increased the dividend for 14 consecutive years in a row.
According to Value Line, MATW has a book value of $14.32. If we assume the lowest quarterly earnings during the worst of the economic crisis from Q4 2007 to Q1 2009 and project those earnings (the most conservative estimate) into the future, we get a Q1 2011 P/E ratio of 16.92. Value Line also considers MATW at fair valuation around $41.86 or 13 times cash flow per share. Using the most optimistic scenario according to Dow Theory, MATW is considered fairly valued at $35.77.