MATW

Matthews International is a three-segment industrial roll-up (Memorialization, Industrial Technologies, Brand Solutions) whose fundamentals are deteriorating in ways the headline 0.5x P/S obscures. FY2025 revenue fell 16.6% to $1.50B — a third straight year of decline from $1.88B in FY2023 — and the company posted a net loss of $24.5M, its second loss in three years (FY2024 was -$59.7M, FY2022 was -$99.8M). Operating margin of 5.0% looks like a recovery off a tiny prior-year base, but the cash story contradicts it: operating cash flow swung to -$23.6M (down 129.7% YoY) while capex of $35.8M and dividends of $32.8M were funded out of a shrinking $32.4M cash pile (-20.5%). You cannot sustain a $32.8M dividend on negative operating cash flow without further levering or asset sales.

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