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Are Investors Undervaluing Matthews International (MATW) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Matthews International (MATW - Free Report) . MATW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.53. This compares to its industry's average Forward P/E of 15.71. Over the past 52 weeks, MATW's Forward P/E has been as high as 12.28 and as low as 7.53, with a median of 9.88.

Finally, our model also underscores that MATW has a P/CF ratio of 8.06. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.28. Over the past 52 weeks, MATW's P/CF has been as high as 9.82 and as low as 7.43, with a median of 8.78.

These are just a handful of the figures considered in Matthews International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MATW is an impressive value stock right now.


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