MATTEL INC (MAT) Stock Fundamental Analysis
NASDAQ:MAT - Nasdaq - US5770811025 - Common Stock - Currency: USD
Taking everything into account, MAT scores 6 out of 10 in our fundamental rating. MAT was compared to 30 industry peers in the Leisure Products industry. While MAT has a great profitability rating, there are some minor concerns on its financial health. MAT is valued correctly, but it does not seem to be growing.
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.
MAT had positive earnings in each of the past 5 years.
Of the past 5 years MAT 4 years 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 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 23.70%, MAT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
MAT has a better Return On Invested Capital (8.66%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAT is in line with the industry average of 8.39%.
The 3 year average ROIC (8.35%) for MAT is below the current ROIC(8.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 23.7% | ||
| ROIC | 8.66% |
ROA(3y)6%
ROA(5y)6.87%
ROE(3y)17.69%
ROE(5y)26.18%
ROIC(3y)8.35%
ROIC(5y)8.17%
1.3 Margins
Looking at the Profit Margin, with a value of 10.24%, MAT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MAT has declined.
The Operating Margin of MAT (13.49%) is better than 93.33% of its industry peers.
MAT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 50.23%, MAT is doing good in 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 | 13.49% | ||
| PM (TTM) | 10.24% | ||
| GM | 50.23% |
OM growth 3Y-0.51%
OM growth 5Y52.77%
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.
Compared to 1 year ago, MAT has less shares outstanding
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 3.29. This indicates that MAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MAT (3.29) is better than 70.00% 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.
MAT's Debt to FCF ratio of 3.39 is fine compared to the rest of the industry. MAT outperforms 63.33% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that MAT has dependencies on debt financing.
The Debt to Equity ratio of MAT (1.01) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.15
WACC7.53%
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 60.00% of its industry peers.
MAT has a Quick Ratio of 1.88. 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 decent Quick ratio value of 1.88, MAT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.52% over the past year.
Measured over the past 5 years, MAT shows a small growth in Earnings Per Share. The EPS has been growing by 7.83% on average per year.
The Revenue has decreased by -1.13% 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)32.52%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%20.69%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%1.59%
3.2 Future
Based on estimates for the next years, MAT will show a small growth in Earnings Per Share. The EPS will grow by 5.00% on average per year.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y5.07%
EPS Next 2Y6.45%
EPS Next 3Y6.66%
EPS Next 5Y5%
Revenue Next Year1.75%
Revenue Next 2Y2.03%
Revenue Next 3Y1.97%
Revenue Next 5Y2.75%
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.
4. Valuation
4.1 Price/Earnings Ratio
MAT is valuated correctly with a Price/Earnings ratio of 12.90.
Based on the Price/Earnings ratio, MAT is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.75, MAT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.27, the valuation of MAT can be described as correct.
MAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MAT is cheaper than 73.33% of the companies in the same industry.
MAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAT is valued a bit cheaper than 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MAT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 9.74 |
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)2.54
PEG (5Y)N/A
EPS Next 2Y6.45%
EPS Next 3Y6.66%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.02
-0.28 (-1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners99.45%
Inst Owner Change1%
Ins Owners0.62%
Ins Owner Change2.12%
Market Cap7.08B
Analysts81.11
Price Target26.14 (24.36%)
Short Float %4.13%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)14.85%
Min EPS beat(2)10.82%
Max EPS beat(2)18.88%
EPS beat(4)3
Avg EPS beat(4)20.43%
Min EPS beat(4)-8.24%
Max EPS beat(4)60.24%
EPS beat(8)5
Avg EPS beat(8)81.39%
EPS beat(12)9
Avg EPS beat(12)102.63%
EPS beat(16)13
Avg EPS beat(16)96.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-1.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)1.68%
Revenue beat(16)10
Avg Revenue beat(16)4.23%
PT rev (1m)6.72%
PT rev (3m)7.28%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)7.02%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.32 | ||
| P/FCF | 10.29 | ||
| P/OCF | 7.98 | ||
| P/B | 3.06 | ||
| P/tB | 12.89 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)1.63
EY7.75%
EPS(NY)1.71
Fwd EY8.15%
FCF(TTM)2.04
FCFY9.72%
OCF(TTM)2.64
OCFY12.54%
SpS15.89
BVpS6.87
TBVpS1.63
PEG (NY)2.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 23.7% | ||
| ROCE | 13.85% | ||
| ROIC | 8.66% | ||
| ROICexc | 10.06% | ||
| ROICexgc | 16.56% | ||
| OM | 13.49% | ||
| PM (TTM) | 10.24% | ||
| GM | 50.23% | ||
| FCFM | 12.85% |
ROA(3y)6%
ROA(5y)6.87%
ROE(3y)17.69%
ROE(5y)26.18%
ROIC(3y)8.35%
ROIC(5y)8.17%
ROICexc(3y)10.76%
ROICexc(5y)10.23%
ROICexgc(3y)18.42%
ROICexgc(5y)18.63%
ROCE(3y)13.35%
ROCE(5y)13.06%
ROICexcg growth 3Y-4.63%
ROICexcg growth 5Y42.91%
ROICexc growth 3Y0.9%
ROICexc growth 5Y54.65%
OM growth 3Y-0.51%
OM growth 5Y52.77%
PM growth 3Y-15.25%
PM growth 5YN/A
GM growth 3Y1.85%
GM growth 5Y2.81%
F-Score9
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.39 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 117.54% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.53% | ||
| Profit Quality | 125.5% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 3.29 |
F-Score9
WACC7.53%
ROIC/WACC1.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.52%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%20.69%
EPS Next Y5.07%
EPS Next 2Y6.45%
EPS Next 3Y6.66%
EPS Next 5Y5%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%1.59%
Revenue Next Year1.75%
Revenue Next 2Y2.03%
Revenue Next 3Y1.97%
Revenue Next 5Y2.75%
EBIT growth 1Y29.24%
EBIT growth 3Y-0.99%
EBIT growth 5Y58.29%
EBIT Next Year50.07%
EBIT Next 3Y16.31%
EBIT Next 5YN/A
FCF growth 1Y49.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.15%
OCF growth 3YN/A
OCF growth 5YN/A