MAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. MAT has an excellent profitability rating, but there are some minor concerns on its financial health. MAT is valued correctly, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MAT had positive earnings in the past year.
MAT had a positive operating cash flow in the past year.
Each year in the past 5 years MAT has been profitable.
MAT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

MAT has a better Return On Assets (6.56%) than 86.67% of its industry peers.
MAT has a Return On Equity of 19.12%. This is amongst the best in the industry. MAT outperforms 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.19%, MAT is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
MAT had an Average Return On Invested Capital over the past 3 years of 8.34%. This is in line with the industry average of 7.61%.

		Industry Rank	Sector Rank
ROA	6.56%
ROE	19.12%
ROIC	8.19%

ROA(3y)6%

ROA(5y)6.87%

ROE(3y)17.69%

ROE(5y)26.18%

ROIC(3y)8.34%

ROIC(5y)8.16%

1.3 Margins

The Profit Margin of MAT (8.27%) is better than 93.33% of its industry peers.
In the last couple of years the Profit Margin of MAT has declined.
MAT has a better Operating Margin (11.57%) than 86.67% 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 50.47%, MAT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MAT has grown nicely.

		Industry Rank	Sector Rank
OM	11.57%
PM (TTM)	8.27%
GM	50.47%

OM growth 3Y-0.64%

OM growth 5Y52.65%

PM growth 3Y-15.25%

PM growth 5YN/A

GM growth 3Y1.85%

GM growth 5Y2.81%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAT is destroying value.
Compared to 1 year ago, MAT has less shares outstanding
MAT has less shares outstanding than it did 5 years ago.
MAT has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.03 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a Altman-Z score (3.03) which is in line with its industry peers.
The Debt to FCF ratio of MAT is 4.79, which is a neutral value as it means it would take MAT, 4.79 years of fcf income to pay off all of its debts.
MAT has a Debt to FCF ratio of 4.79. This is comparable to the rest of the industry: MAT outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that MAT is somewhat dependend on debt financing.
MAT has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: MAT underperforms 60.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	4.79
Altman-Z	3.03

ROIC/WACC0.92

WACC8.89%

2.3 Liquidity

MAT has a Current Ratio of 1.60. This is a normal value and indicates that MAT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.60, MAT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.18 indicates that MAT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, MAT perfoms like the industry average, outperforming 43.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.6
Quick Ratio	1.18

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MAT have decreased strongly by -10.83% in the last year.
MAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.83% yearly.
The Revenue has decreased by -2.36% in the past year.
Measured over the past years, MAT shows a small growth in Revenue. The Revenue has been growing by 3.61% on average per year.

EPS 1Y (TTM)-10.83%

EPS 3Y7.83%

EPS 5YN/A

EPS Q2Q%-21.93%

Revenue 1Y (TTM)-2.36%

Revenue growth 3Y-0.48%

Revenue growth 5Y3.61%

Sales Q2Q%-5.85%

3.2 Future

MAT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.10% yearly.
Based on estimates for the next years, MAT will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.

EPS Next Y-2.81%

EPS Next 2Y4.04%

EPS Next 3Y5.44%

EPS Next 5Y5.1%

Revenue Next Year1.2%

Revenue Next 2Y2.33%

Revenue Next 3Y2.34%

Revenue Next 5Y2.17%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.76 indicates a correct valuation of MAT.
MAT's Price/Earnings ratio is rather cheap when compared to the industry. MAT is cheaper than 96.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. MAT is valued slightly cheaper when compared to this.
MAT is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
Based on the Price/Forward Earnings ratio, MAT is valued cheaper than 96.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MAT to the average of the S&P500 Index (25.98), we can say MAT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.76
Fwd PE	11.72

4.2 Price Multiples

80.00% of the companies in the same industry are more expensive than MAT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MAT is valued a bit cheaper than 76.67% of the companies in the same industry.