We assign a fundamental rating of 5 out of 10 to MAT. MAT was compared to 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 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

In the past year MAT was profitable.
MAT had a positive operating cash flow in the past year.
MAT had positive earnings in each of the past 5 years.
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.
MAT has a better Return On Invested Capital (8.19%) than 76.67% 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 7.61%.

		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.
MAT's Profit Margin has declined in the last couple of years.
The Operating Margin of MAT (11.57%) is better than 86.67% of its industry peers.
In the last couple of years the Operating Margin of MAT has grown nicely.
MAT has a better Gross Margin (50.47%) than 80.00% of its industry peers.
MAT's Gross Margin has improved in the last couple of years.

		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.
The number of shares outstanding for MAT has been reduced compared to 1 year ago.
Compared to 5 years ago, MAT has less shares outstanding
MAT has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.01 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a Altman-Z score (3.01) 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.
Looking at the Debt to FCF ratio, with a value of 4.79, MAT is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that MAT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, MAT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	4.79
Altman-Z	3.01

ROIC/WACC0.92

WACC8.88%

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.
MAT's Current ratio of 1.60 is on the low side compared to the rest of the industry. MAT is outperformed by 70.00% 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 has a Quick ratio (1.18) which is comparable to the rest of the 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.
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.
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

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

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

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.
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

MAT is valuated correctly with a Price/Earnings ratio of 14.45.
Based on the Price/Earnings ratio, MAT is valued cheaper than 96.67% of the companies in the same industry.
MAT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.47, the valuation of MAT can be described as reasonable.
Based on the Price/Forward Earnings ratio, MAT is valued cheaper than 96.67% of the companies in the same industry.
MAT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.

		Industry Rank	Sector Rank
PE	14.45
Fwd PE	11.47

4.2 Price Multiples

MAT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MAT is cheaper than 83.33% 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 76.67% of the companies in the same industry.