MATTEL INC (MAT) Stock Fundamental Analysis
NASDAQ:MAT - Nasdaq - US5770811025 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MAT. MAT was compared to 30 industry peers in the Leisure Products industry. MAT scores excellent on profitability, but 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.
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.
In the past 5 years MAT has always been profitable.
Each year in the past 5 years MAT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.54%, MAT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Equity of MAT (24.88%) is better than 93.33% of its industry peers.
The Return On Invested Capital of MAT (9.23%) is better than 83.33% of its industry peers.
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 7.91%.
The 3 year average ROIC (8.34%) for MAT is below the current ROIC(9.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 24.88% | ||
| ROIC | 9.23% |
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
Looking at the Profit Margin, with a value of 9.82%, MAT belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MAT has declined.
MAT has a Operating Margin of 13.82%. This is amongst the best in the industry. MAT outperforms 96.67% of its industry peers.
MAT's Operating Margin has improved in the last couple of years.
MAT's Gross Margin of 51.09% is amongst the best of the industry. MAT outperforms 86.67% of its industry peers.
MAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 9.82% | ||
| GM | 51.09% |
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%
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.
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.
MAT has a better debt/assets ratio than last year.
2.2 Solvency
MAT has an Altman-Z score of 3.35. This indicates that MAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MAT (3.35) is better than 63.33% of its industry peers.
The Debt to FCF ratio of MAT is 4.02, which is a neutral value as it means it would take MAT, 4.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.02, MAT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that MAT has dependencies on debt financing.
With a Debt to Equity ratio value of 1.10, MAT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.12
WACC8.22%
2.3 Liquidity
MAT has a Current Ratio of 2.43. This indicates that MAT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MAT (2.43) is comparable to the rest of the industry.
MAT has a Quick Ratio of 1.86. This is a normal value and indicates that MAT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MAT (1.86) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.20% over the past year.
MAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.83% yearly.
Looking at the last year, MAT shows a decrease in Revenue. The Revenue has decreased by -0.73% in the last 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)16.2%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%2.11%
3.2 Future
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
Based on estimates for the next years, MAT will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y1.38%
EPS Next 2Y4.43%
EPS Next 3Y4.34%
EPS Next 5Y6%
Revenue Next Year1.85%
Revenue Next 2Y1.87%
Revenue Next 3Y1.65%
Revenue Next 5Y2.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 12.10, the valuation of MAT can be described as correct.
Based on the Price/Earnings ratio, MAT is valued cheaper than 93.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MAT is valued rather cheaply.
The Price/Forward Earnings ratio is 11.23, which indicates a very decent valuation of MAT.
Based on the Price/Forward Earnings ratio, MAT is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MAT to the average of the S&P500 Index (21.76), we can say MAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
MAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAT is cheaper than 80.00% of the companies in the same industry.
MAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MAT is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MAT may justify a higher PE ratio.
PEG (NY)8.76
PEG (5Y)N/A
EPS Next 2Y4.43%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.97
-0.25 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners102.61%
Inst Owner Change-0.01%
Ins Owners0.64%
Ins Owner Change5%
Market Cap6.45B
Analysts82.22
Price Target24 (20.18%)
Short Float %2.81%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.7%
Min EPS beat(2)70%
Max EPS beat(2)71.4%
EPS beat(4)4
Avg EPS beat(4)42.78%
Min EPS beat(4)10.82%
Max EPS beat(4)71.4%
EPS beat(8)7
Avg EPS beat(8)106.62%
EPS beat(12)9
Avg EPS beat(12)82.43%
EPS beat(16)13
Avg EPS beat(16)96.42%
Revenue beat(2)2
Avg Revenue beat(2)2.13%
Min Revenue beat(2)0.15%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.5%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)2.72%
PT rev (1m)-0.06%
PT rev (3m)-8.18%
EPS NQ rev (1m)-12.68%
EPS NQ rev (3m)-17.33%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-2.07%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.23 | ||
| P/S | 1.19 | ||
| P/FCF | 11.09 | ||
| P/OCF | 8.16 | ||
| P/B | 3.03 | ||
| P/tB | 16.59 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)1.65
EY8.26%
EPS(NY)1.78
Fwd EY8.9%
FCF(TTM)1.8
FCFY9.02%
OCF(TTM)2.45
OCFY12.25%
SpS16.71
BVpS6.6
TBVpS1.2
PEG (NY)8.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 24.88% | ||
| ROCE | 14.74% | ||
| ROIC | 9.23% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 22.49% | ||
| OM | 13.82% | ||
| PM (TTM) | 9.82% | ||
| GM | 51.09% | ||
| FCFM | 10.78% |
ROA(3y)6%
ROA(5y)6.87%
ROE(3y)17.69%
ROE(5y)26.18%
ROIC(3y)8.34%
ROIC(5y)8.16%
ROICexc(3y)10.74%
ROICexc(5y)10.22%
ROICexgc(3y)19.47%
ROICexgc(5y)19.26%
ROCE(3y)13.33%
ROCE(5y)13.05%
ROICexcg growth 3Y0.41%
ROICexcg growth 5Y47.39%
ROICexc growth 3Y0.77%
ROICexc growth 5Y54.53%
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%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 124.45% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.47% | ||
| Profit Quality | 109.77% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 3.35 |
F-Score7
WACC8.22%
ROIC/WACC1.12
Cap/Depr(3y)104.46%
Cap/Depr(5y)91.39%
Cap/Sales(3y)3.38%
Cap/Sales(5y)3.1%
Profit Quality(3y)168.81%
Profit Quality(5y)135.69%
High Growth Momentum
Growth
EPS 1Y (TTM)16.2%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y1.38%
EPS Next 2Y4.43%
EPS Next 3Y4.34%
EPS Next 5Y6%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%2.11%
Revenue Next Year1.85%
Revenue Next 2Y1.87%
Revenue Next 3Y1.65%
Revenue Next 5Y2.06%
EBIT growth 1Y13.21%
EBIT growth 3Y-1.12%
EBIT growth 5Y58.17%
EBIT Next Year49.22%
EBIT Next 3Y15.25%
EBIT Next 5YN/A
FCF growth 1Y211.49%
FCF growth 3Y21.41%
FCF growth 5Y56.06%
OCF growth 1Y107.76%
OCF growth 3Y18.14%
OCF growth 5Y36.59%