NASDAQ:MAT is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 1, 2024

MATTEL INC (NASDAQ:MAT) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:MAT showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Deciphering NASDAQ:MAT's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:MAT was assigned a score of 8 for valuation:

Based on the Price/Earnings ratio, MAT is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
MAT is valuated cheaply when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
MAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MAT is cheaper than 74.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.06. MAT is valued slightly cheaper when compared to this.
MAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAT is cheaper than 64.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 87.10% of the companies listed in the same industry.
MAT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MAT has an outstanding profitability rating, which may justify a higher PE ratio.
MAT's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:MAT's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:MAT has earned a 9 out of 10:

The Return On Assets of MAT (5.46%) is better than 80.65% of its industry peers.
MAT's Return On Equity of 16.33% is amongst the best of the industry. MAT outperforms 90.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.03%, MAT belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAT is above the industry average of 8.74%.
The last Return On Invested Capital (11.03%) for MAT is above the 3 year average (11.01%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 5.94%, MAT belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
MAT's Profit Margin has improved in the last couple of years.
The Operating Margin of MAT (12.59%) is better than 93.55% of its industry peers.
In the last couple of years the Operating Margin of MAT has grown nicely.
Looking at the Gross Margin, with a value of 49.51%, MAT belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
MAT's Gross Margin has improved in the last couple of years.

Evaluating Health: NASDAQ:MAT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:MAT has received a 6 out of 10:

An Altman-Z score of 3.41 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT's Altman-Z score of 3.41 is fine compared to the rest of the industry. MAT outperforms 67.74% of its industry peers.
MAT has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as MAT would need 2.82 years to pay back of all of its debts.
MAT has a better Debt to FCF ratio (2.82) than 67.74% of its industry peers.
MAT has a Current Ratio of 2.58. This indicates that MAT is financially healthy and has no problem in meeting its short term obligations.
MAT has a better Quick ratio (1.81) than 67.74% of its industry peers.

Exploring NASDAQ:MAT's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:MAT was assigned a score of 5 for growth:

MAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.18%, which is quite impressive.
MAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.40% yearly.
MAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.87% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of MAT for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.