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Matthews, founded in 1850 and incorporated in Pennsylvania in 1902, is a global provider of memorialization products, industrial technologies and brand solutions. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home i…
Operating margin is thin at 9.45%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 16.6% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 274% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$59M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (FY)
$1.50B
▼ -16.6% YoY
Net Income (TTM)
$10M
▲ +59.0% YoY
Op. Margin
9.45%
▲ +10.1pp YoY
ROIC
7.86%
▲ +8.6pp YoY
Cash Flow & Balance Sheet
FCF (FY)
-$59M
▼ -274.3% YoY
Op. Cash Flow (FY)
-$24M
▼ -129.7% YoY
Net Debt
$619M
Cash & Equiv.
$36M
5Y CAGR: -0.0%
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