We assign a fundamental rating of 5 out of 10 to MAT. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.

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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.
In the past year MAT had a positive cash flow from operations.
Each year in the past 5 years MAT has been profitable.
Each year in the past 5 years MAT had a positive operating cash flow.

1.2 Ratios

MAT has a better Return On Assets (6.56%) than 87.10% of its industry peers.
MAT has a better Return On Equity (19.12%) than 93.55% of its industry peers.
The Return On Invested Capital of MAT (8.19%) is better than 77.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAT is in line with the industry average of 7.35%.

		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

With an excellent Profit Margin value of 8.27%, MAT belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Profit Margin of MAT has declined.
Looking at the Operating Margin, with a value of 11.57%, MAT belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
MAT's Operating Margin has improved in the last couple of years.
MAT has a better Gross Margin (50.47%) than 77.42% of its industry peers.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAT is destroying value.
The number of shares outstanding for MAT has been reduced compared to 1 year ago.
The number of shares outstanding for MAT has been reduced compared to 5 years ago.
Compared to 1 year ago, MAT has an improved debt to assets ratio.

2.2 Solvency

MAT has an Altman-Z score of 3.04. This indicates that MAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MAT (3.04) is better than 64.52% of 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.
With a decent Debt to FCF ratio value of 4.79, MAT is doing good in the industry, outperforming 61.29% of the companies in the same industry.
MAT has a Debt/Equity ratio of 0.77. This is a neutral value indicating MAT is somewhat dependend on debt financing.
The Debt to Equity ratio of MAT (0.77) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	4.79
Altman-Z	3.04

ROIC/WACC0.98

WACC8.35%

2.3 Liquidity

A Current Ratio of 1.60 indicates that MAT should not have too much problems paying its short term obligations.
MAT's Current ratio of 1.60 is on the low side compared to the rest of the industry. MAT is outperformed by 70.97% of its industry peers.
MAT has a Quick Ratio of 1.18. This is a normal value and indicates that MAT is financially healthy and should not expect problems in meeting its short term obligations.
MAT's Quick ratio of 1.18 is in line compared to the rest of the industry. MAT outperforms 41.94% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.6
Quick Ratio	1.18

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WACC

Debt/Equity

How to determine the health of a company

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.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
Looking at the last year, MAT shows a decrease in Revenue. The Revenue has decreased by -2.36% in the last year.
The Revenue has been growing slightly by 3.61% on average over the past years.

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

The Earnings Per Share is expected to grow by 5.10% on average over the next years.
The Revenue is expected to grow by 2.17% on average over the next years.

EPS Next Y-2.68%

EPS Next 2Y4.01%

EPS Next 3Y5.33%

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

Based on the Price/Earnings ratio of 14.76, the valuation of MAT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 96.77% of the companies listed in the same industry.
MAT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of MAT.
Based on the Price/Forward Earnings ratio, MAT is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.26. MAT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	14.76
Fwd PE	11.72

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 80.65% of the companies listed in the same industry.
MAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MAT is cheaper than 77.42% of the companies in the same industry.