Matthews International stock: Is the drop behind us?

In the last calendar year – dating back to October 16, 2023 – Matthews International stock, the parent company of Aurora Casket and Matthews Environmental Solutions (cremation), has dropped over 44% in a world, by contrast, where the Dow Jones Industrials have risen over 25% for the same dates.

A recent (October 6, 2024) article in Seeking Alpha titled “Matthews International: Lawsuit risks loom, but inflection point could be near”, gives an argument to the thought that the worst of the stock price drop may be behind the company.  Funeral Director Daily will give some quotes from the article and then let you read the article here and decide for yourself on the status of the company.

You may or may not know that Matthews International is a consolidated company with three distinct segments — Industrial Tehnologies, Memorialization, and SGK Brand Solutions.  As you can understand, most of our readers are interested in the Memorialization Segment.

Here’s a few quotes from the Seeking Alpha article authors:

• “Matthews International faces challenges due to an outstanding Tesla lawsuit casting a pall, but historically low stock levels present a potential buying opportunity as operating metrics may improve.”

• “The company’s memorialization business shows promise with expected Q4 improvements, lapping declining death rates and tough comparisons.”

• “Industrial technology struggles with stalled EV battery equipment orders . . . “

• “Cost-saving measures and strategic acquisitions aim to improve profitability. . .” 

• “Matthews International  is a stock we’ve covered for some time now. We’ve had successes with it, but the latest run for the stock has been difficult. The major news has been a Tesla  lawsuit against Matthews, looking for an injunction against the company to stop it from monetizing allegedly stolen “trade secrets” that hadn’t been specified.”

• “Memorialization is a cash cow, and with significant declines in the stock, we are beginning to get to prices where that cash cow will be downside protection.”

• “We also believe there is scope for improvements once again in industrial technology between the new product launch and the outstanding orders.”

Related Article — Matthews International completes Senior Notes offering.  PR Newswire

Here is the website for Matthews International

Here is the website for the Matthews International Memorialization Segment

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