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Matthews International Highlights Support from Investment Community Following Fiscal 2025 First Quarter Earnings Announcement
GAMCO Asset Management, Top 5 and Long-Term Shareholder, Endorses Matthews’ Director Nominees Urges Shareholders to Vote “FOR” All Three of Matthews’ Director
About this update from Matthews International Corporation
[{"type":"text","content":"GAMCO Asset Management, Top 5 and Long-Term Shareholder, Endorses Matthews’ Director Nominees Urges Shareholders to Vote “FOR” All Three of Matthews’ Director Nominees on the WHITE Proxy Card and “WITHHOLD” on Barington’s Director Nominees PITTSBURGH, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (Nasdaq GSM: MATW) (“Matthews” or the “Company”) today commented on the significant support it has received from its sell-side analysts following its recent fiscal 2025 first quarter earnings announcement. On February 6, 2025, Matthews announced financial results for its first quarter of fiscal 2025, highlighting that Memorialization and SGK Brand Solutions continued their solid performance, and that the Industrial Technologies segment was challenged by the impact of the Tesla litigation. Importantly, last week Matthews announced that an arbitrator affirmed that the Company has the right to sell its Dry Battery Electrode (“DBE”) solutions to customers other than Tesla, and, as a result, Matthews intends to immediately resume marketing, selling and delivering its DBE products to other customers in the growing electric vehicle market. On the earnings call, Matthews also highlighted the benefits of the SGK transaction and other actions the Board has taken to unlock the value of our businesses. Following the earnings announcement, the Company’s sell-side analysts noted the positive momentum underway: “Revenue and EBITDA results reflected customer delays related to the Tesla lawsuit. MATW announced that an arbitrator issued a ruling in favor of Matthews in its case against Tesla. The ruling supported Matthews’ pre-Tesla history in manufacturing advanced DBE technology and affirmed that MATW has the right to sell its solutions to customers other than Tesla. Matthews will immediately resume marketing efforts to rebuild its order pipeline, and we expect the segment to see renewed sales growth as backlog builds.” – B. Riley“On a sum of the parts basis, we believe a higher valuation could be justified. As described in the chart below, applying a 9x EBITDA multiple to our pro forma FY26 estimates for Memorialization, 8x for SGK and SGS, 10x for the higher growth Industrial business and 7x for corporate expense equates to a fair value in the $45 range. Looking out 1-2 years further, and utilizing those same multiples, fair va...