MATTEL INC (MAT) Stock Fundamental Analysis
NASDAQ:MAT - Nasdaq - US5770811025 - Common Stock - Currency: USD
MAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 bad growth rate and is valued cheaply. These ratings would make MAT suitable for value investing!
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.
In the past 5 years MAT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MAT (8.54%) is better than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 24.88%, 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 (9.23%) is better than 83.33% 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 8.00%.
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
MAT's Profit Margin of 9.82% is amongst the best of the industry. MAT outperforms 96.67% of its industry peers.
In the last couple of years the Profit Margin of MAT has declined.
With an excellent Operating Margin value of 13.82%, MAT belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
In the last couple of years the Operating Margin of MAT has grown nicely.
The Gross Margin of MAT (51.09%) is better than 86.67% of its industry peers.
In the last couple of years the Gross Margin of MAT has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MAT is still 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.
The debt/assets ratio for MAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.29 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a better Altman-Z score (3.29) 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.
MAT has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.10, MAT is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.18
WACC7.79%
2.3 Liquidity
A Current Ratio of 2.43 indicates that MAT has no problem at all paying its short term obligations.
MAT has a Current ratio of 2.43. This is comparable to the rest of the industry: MAT outperforms 53.33% of its industry peers.
A Quick Ratio of 1.86 indicates that MAT should not have too much problems paying 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
MAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.20%, which is quite good.
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 -0.73% 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)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
Based on estimates for the next years, MAT will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
MAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
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
A Price/Earnings ratio of 11.55 indicates a reasonable valuation of MAT.
Compared to the rest of the industry, the Price/Earnings ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 93.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MAT to the average of the S&P500 Index (26.35), we can say MAT is valued rather cheaply.
MAT is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Based on the Price/Forward Earnings ratio, MAT is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
MAT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAT is valued a bit cheaper than 76.67% of the companies in the same industry.
76.67% of the companies in the same industry are more expensive than MAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MAT may justify a higher PE ratio.
PEG (NY)8.36
PEG (5Y)N/A
EPS Next 2Y4.43%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
MAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.06
+0.09 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners102.61%
Inst Owner Change-1.88%
Ins Owners0.64%
Ins Owner Change5%
Market Cap6.15B
Analysts84.44
Price Target24 (25.92%)
Short Float %3.46%
Short Ratio2.49
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)0%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-3.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.72 | ||
| P/S | 1.14 | ||
| P/FCF | 10.58 | ||
| P/OCF | 7.79 | ||
| P/B | 2.89 | ||
| P/tB | 15.84 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)1.65
EY8.66%
EPS(NY)1.78
Fwd EY9.33%
FCF(TTM)1.8
FCFY9.45%
OCF(TTM)2.45
OCFY12.83%
SpS16.71
BVpS6.6
TBVpS1.2
PEG (NY)8.36
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 | 3.29 |
F-Score7
WACC7.79%
ROIC/WACC1.18
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%