MATTEL INC (MAT) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:MAT - US5770811025 - Common Stock

20.26 USD

-0.35 (-1.7%)

Last: 1/27/2026, 3:36:47 PM

Fundamental Rating

Overall MAT gets a fundamental rating of 5 out of 10. We evaluated MAT against 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 it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year MAT was profitable.
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

The Return On Assets of MAT (6.56%) is better than 86.67% of its industry peers.
Looking at the Return On Equity, with a value of 19.12%, MAT belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Invested Capital of MAT (8.19%) is better than 76.67% 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 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.
MAT's Operating Margin of 11.57% is amongst the best of the industry. MAT outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of MAT has grown nicely.
Looking at the Gross Margin, with a value of 50.47%, MAT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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

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.
Compared to 5 years ago, MAT has less shares outstanding
The debt/assets ratio for MAT has been reduced compared to a year ago.

2.2 Solvency

MAT has an Altman-Z score of 3.02. This indicates that MAT is financially healthy and has little risk of bankruptcy at the moment.
MAT has a Altman-Z score (3.02) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of MAT (4.79) is comparable to the rest of the industry.
MAT has a Debt/Equity ratio of 0.77. This is a neutral value indicating MAT is somewhat dependend on debt financing.
MAT has a worse Debt to Equity ratio (0.77) than 60.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	4.79
Altman-Z	3.02

ROIC/WACC0.92

WACC8.89%

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.
Looking at the Current ratio, with a value of 1.60, MAT is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that MAT should not have too much problems paying its short term obligations.
MAT has a Quick ratio (1.18) which is in line with its industry peers.

		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

MAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.83%.
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 -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

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

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

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 14.47, the valuation of MAT can be described as correct.
MAT's Price/Earnings ratio is rather cheap when compared to the industry. MAT is cheaper than 96.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. MAT is valued slightly cheaper when compared to this.
MAT is valuated reasonably with a Price/Forward Earnings ratio of 11.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 96.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MAT to the average of the S&P500 Index (25.98), we can say MAT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.47
Fwd PE	11.48

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MAT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MAT is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.