MATTEL INC (MAT)
US5770811025 - Common Stock
Taking everything into account, MAT scores 7 out of 10 in our fundamental rating. MAT was compared to 31 industry peers in the Leisure Products industry. While MAT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MAT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, MAT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MAT was profitable.
MAT had a positive operating cash flow in the past year.
MAT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MAT had a positive operating cash flow.
1.2 Ratios
MAT's Return On Assets of 8.42% is amongst the best of the industry. MAT outperforms 93.55% of its industry peers.
MAT's Return On Equity of 23.70% is amongst the best of the industry. MAT outperforms 93.55% of its industry peers.
MAT has a Return On Invested Capital of 10.94%. This is amongst the best in the industry. MAT outperforms 87.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAT is above the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 23.7% | ||
| ROIC | 10.94% |
ROA(3y)7.94%
ROA(5y)4.39%
ROE(3y)28.9%
ROE(5y)12.49%
ROIC(3y)11.01%
ROIC(5y)8.36%
1.3 Margins
MAT has a better Profit Margin (10.24%) than 96.77% of its industry peers.
In the last couple of years the Profit Margin of MAT has grown nicely.
MAT has a Operating Margin of 13.49%. This is amongst the best in the industry. MAT outperforms 93.55% of its industry peers.
MAT's Operating Margin has improved in the last couple of years.
MAT's Gross Margin of 50.23% is amongst the best of the industry. MAT outperforms 80.65% of its industry peers.
In the last couple of years the Gross Margin of MAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | 10.24% | ||
| GM | 50.23% |
OM growth 3Y8.84%
OM growth 5YN/A
PM growth 3Y13.51%
PM growth 5YN/A
GM growth 3Y-1.07%
GM growth 5Y3.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MAT is creating some value.
Compared to 1 year ago, MAT has less shares outstanding
Compared to 5 years ago, MAT has more shares outstanding
MAT has a better debt/assets ratio than last year.
2.2 Solvency
MAT has an Altman-Z score of 3.25. This indicates that MAT is financially healthy and has little risk of bankruptcy at the moment.
MAT's Altman-Z score of 3.25 is fine compared to the rest of the industry. MAT outperforms 64.52% of its industry peers.
MAT has a debt to FCF ratio of 3.39. This is a good value and a sign of high solvency as MAT would need 3.39 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.39, MAT is doing good in the industry, outperforming 61.29% of the companies in the same industry.
MAT has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, MAT is doing worse than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.41
WACC7.73%
2.3 Liquidity
MAT has a Current Ratio of 2.45. This indicates that MAT is financially healthy and has no problem in meeting its short term obligations.
MAT has a Current ratio of 2.45. This is comparable to the rest of the industry: MAT outperforms 51.61% of its industry peers.
A Quick Ratio of 1.88 indicates that MAT should not have too much problems paying its short term obligations.
The Quick ratio of MAT (1.88) is better than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
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.
The Earnings Per Share has been growing by 32.40% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.51% in the past year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)40.18%
EPS 3Y32.4%
EPS 5YN/A
EPS Q2Q%5.56%
Revenue 1Y (TTM)2.51%
Revenue growth 3Y5.85%
Revenue growth 5Y3.8%
Sales Q2Q%-3.9%
3.2 Future
The Earnings Per Share is expected to grow by 10.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.54% on average over the next years.
EPS Next Y20.39%
EPS Next 2Y14.29%
EPS Next 3Y12.52%
EPS Next 5Y10.87%
Revenue Next Year-1.5%
Revenue Next 2Y0.75%
Revenue Next 3Y1.28%
Revenue Next 5Y2.54%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.75, the valuation of MAT can be described as correct.
87.10% of the companies in the same industry are more expensive than MAT, based on the Price/Earnings ratio.
MAT is valuated cheaply when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.46, the valuation of MAT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAT indicates a somewhat cheap valuation: MAT is cheaper than 74.19% of the companies listed in the same industry.
MAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than MAT, based on the Enterprise Value to EBITDA ratio.
MAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MAT is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as MAT's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y14.29%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MATTEL INC
NASDAQ:MAT (11/4/2024, 8:22:12 PM)
After market: 20.01 0 (0%)20.01
+0.1 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 12.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 23.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.49% | ||
| PM (TTM) | 10.24% | ||
| GM | 50.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40.18%
EPS 3Y32.4%
EPS 5Y
EPS Q2Q%
EPS Next Y20.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.51%
Revenue growth 3Y5.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y