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Is Matthews International (MATW) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Matthews International (MATW - Free Report) . MATW is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.37, while its industry has an average P/E of 16.50. Over the past year, MATW's Forward P/E has been as high as 14.12 and as low as 9.86, with a median of 11.53.

Another valuation metric that we should highlight is MATW's P/B ratio of 1.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.27. MATW's P/B has been as high as 2.21 and as low as 1.62, with a median of 1.80, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MATW has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.76.

Finally, investors should note that MATW has a P/CF ratio of 8.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.38. Within the past 12 months, MATW's P/CF has been as high as 31.70 and as low as 7.24, with a median of 8.61.

These are only a few of the key metrics included in Matthews International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MATW looks like an impressive value stock at the moment.


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