May 5, 2008 - Matthews International (MATW-NASDAQ) might not bury its competition, but it can supply the casket and bronze plate. The nation's #1 maker of cremation urns, bronze memorials (including Elvis Presley's Graceland marker), and commemorative products (Baseball Hall of Fame plaques), Matthews also builds mausoleums. Subsidiaries The York Group (the #2 casket maker in the US) and Milso make metal and wood caskets, while Matthews Cremation Division is North America's top cremation equipment maker. Other subsidiaries offer graphic design, packaging, and merchandising services. Matthews has operations in Australia, Canada, China, and Europe, but the US accounts for three-quarters of its sales.

Things look good for MATW as it expands internationally. It's bringing marking products into China through a recent purchase of an interest in a Chinese firm. It just added a 78% ownership in a German company that makes printing forms. That's designed to increase Matthew's offerings in the global graphic imaging business.

Earnings are chugging along with per share reports of $1.84 in 2005, $2.02 in 2006, and $2.17 in 2007. Analysts are looking for $2.50 this year and $2.80 next year. The most recent quarter, ending in March, earnings per share were 65 cents a share, one cent ahead of analysts' expectations. The company announced guidance of $2.48 to $2.54 for the full year. Predictions are for earnings to have an average growth of 12% a year over the next 5 years while sales average 6.5% a year, in the same time period.

Sales for 2007 were $750 million. This year, look for $780 million and $825 million next year. Higher revenues are coming from increased bronze and casket divisions. The brand segment group is seeing greater demand for graphics imaging in the U.S. and Canada markets.

More numbers: There's an annual dividend of 24 cents a share. Debt is 15% of capital. Net profit margin was 9.2% in 2007 with predictions of 9.9% this year and 10.6% next year. Return on Equity is a respectable 16%. Officers and directors own 2.7% of the stock. The company was founded in 1850. It went public in 1994.

The graph of MATW's stock price is like the little engine that could. It just keeps moving higher, not with any great leaps, but steadily and confidently with very little down times. If you're looking for a stock with steady earnings and a solid balance sheet, MATW is worth more of your time.

- Company Web site: www.matw.com

- Ted Allrich