MATTHEWS INTERNATIONAL CORP

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 5✗ 23▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / Book Value per Share1.2x

  ✗Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio1.2x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value6.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.2%, ROC=19.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  Valuation ReasonablenessOE Yield=2.0%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldFCF Yield=-10.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.2x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($18.80)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-5.00%; #3870/6340 (top 61.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.8282; #1852/6449 (top 28.7%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-21.0%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.8886; #1137/5247 (top 21.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-13.97%; #3367/4519 (top 74.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-34.13%; #4584/6202 (top 73.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 8✗ 27▾

  15 of 16 flag MATW's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)19/26 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)21/26 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-6.3%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)5.0% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$11.5M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-6.0%

  ✗Lynch> 15%

  EBIT / Enterprise Value6.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.2%, ROC=19.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-1.44%

  ✗PiotroskiROA > 0

  ROA Change YoY-3.25% -> -1.44% (delta: +1.81%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-1.39%, ROA=-1.44%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY29.5% -> 33.9%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue0.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-6.0%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.2x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-3.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency21/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue6.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-6.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend4.7% (2023) -> 5.0% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 30.7% -> 33.9%, operating margin 4.7% -> 5.0%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-5.00%; #3870/6340 (top 61.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+26.95%; #1593/3702 (top 43.0%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-6.04%; #3257/5226 (top 62.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0257; #1725/5884 (top 29.3%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-17.9% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (1/9)✗LynchFAIL (0/7)✗GreenblattRank #1033✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)•TempletonNEUTRAL (5/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1632/2370 (Top 68.9%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)✗OshaughnessyFAIL (Rank #683/963 (Top 70.9%))
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag MATW's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $559.5M vs NCA $208.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.17, IC: 1.4x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.17

  ✗Lynch< 0.33

  Cash - Long-term Debt$-521.8M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change41.94% -> 41.52%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.76

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.17

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.17

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.4x, D/EBITDA=4.7x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.17

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1673; #3379/4210 (top 80.3%)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag MATW's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -14.7% vs Rev: -16.6%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency21/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-4.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 30.7% -> 33.9%, operating margin 4.7% -> 5.0%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR-0.0%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-17.9% over 5 years

  ✗Neff7%-20% annualized
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag MATW's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.76

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)1.9%

  ✗Buffett> 10%

  ROIC - WACC-8.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)19.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.45 -> 1.48

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.98x -> 0.88x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.76

  ✓Dreman> 1.5

  Return on Invested Capital5.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.3%; FY2024: ROIC=-0.8%; FY2025: ROIC=5.0%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 5.0%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models25% pass✓ 1✗ 3▾

  Models split on MATW at $18.80 — fair values range $4.35–$23.14

  Buffett fair value$4.35

  ✗Buffett-332.2% margin vs $18.80

  Greenblatt fair value$12.81

  ✗Greenblatt-46.8% margin vs $18.80

  Pabrai fair value$5.48

  ✗Pabrai-243.1% margin vs $18.80

  Akre fair value$23.14

  ✓Akre+18.8% margin vs $18.80
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag MATW's cash flow — Lynch, Piotroski, Dreman +4 more

  Free Cash Flow Proxy$11.5M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-82.0M

  ✗LynchPositive and growing

  Operating Cash Flow$-23.6M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-1.39%, ROA=-1.44%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-10.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive20/21 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-14.0%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency23/24 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-82.0M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-13.97%; #3367/4519 (top 74.5%)

  ✗OshaughnessyTop 10% of eligible cross-section