MATTEL INC (MAT)
US5770811025 - Common Stock
MAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Leisure Products industry. MAT scores excellent on profitability, but there are some minor concerns on its financial health. MAT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MAT could be worth investigating further 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.
MAT had positive earnings in 4 of the past 5 years.
In the past 5 years MAT always reported a positive cash flow from operatings.
1.2 Ratios
MAT's Return On Assets of 5.46% is fine compared to the rest of the industry. MAT outperforms 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 16.33%, MAT is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.03%, MAT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
MAT had an Average Return On Invested Capital over the past 3 years of 11.01%. This is in line with the industry average of 10.02%.
The 3 year average ROIC (11.01%) for MAT is below the current ROIC(11.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 16.33% | ||
| ROIC | 11.03% |
ROA(3y)7.94%
ROA(5y)4.39%
ROE(3y)28.9%
ROE(5y)12.49%
ROIC(3y)11.01%
ROIC(5y)8.36%
1.3 Margins
MAT has a better Profit Margin (5.94%) than 81.25% of its industry peers.
MAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.59%, MAT belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
MAT's Operating Margin has improved in the last couple of years.
The Gross Margin of MAT (49.51%) is better than 81.25% of its industry peers.
In the last couple of years the Gross Margin of MAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 5.94% | ||
| GM | 49.51% |
OM growth 3Y8.84%
OM growth 5YN/A
PM growth 3Y13.51%
PM growth 5YN/A
GM growth 3Y-1.07%
GM growth 5Y3.56%
2. Health
2.1 Basic Checks
MAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MAT has less shares outstanding
The number of shares outstanding for MAT has been increased compared to 5 years ago.
MAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.34 indicates that MAT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.34, MAT perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
The Debt to FCF ratio of MAT is 2.82, which is a good value as it means it would take MAT, 2.82 years of fcf income to pay off all of its debts.
MAT has a better Debt to FCF ratio (2.82) than 62.50% of its industry peers.
MAT has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MAT (1.18) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.53
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.58 indicates that MAT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.58, MAT is in line with its industry, outperforming 53.13% of the companies in the same industry.
MAT has a Quick Ratio of 1.81. 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 (1.81) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.58% over the past year.
MAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.40% yearly.
Looking at the last year, MAT shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)75.58%
EPS 3Y32.4%
EPS 5YN/A
EPS Q2Q%90%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y5.85%
Revenue growth 5Y3.8%
Sales Q2Q%-0.69%
3.2 Future
The Earnings Per Share is expected to grow by 10.87% on average over the next years. This is quite good.
MAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y17.03%
EPS Next 2Y12.94%
EPS Next 3Y12.11%
EPS Next 5Y10.87%
Revenue Next Year-1.2%
Revenue Next 2Y0.84%
Revenue Next 3Y1.56%
Revenue Next 5Y2.54%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 12.21.
81.25% of the companies in the same industry are more expensive than MAT, based on the Price/Earnings ratio.
MAT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 11.75, the valuation of MAT can be described as reasonable.
Based on the Price/Forward Earnings ratio, MAT is valued a bit cheaper than 78.13% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.22, MAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
MAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAT is cheaper than 68.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of MAT may justify a higher PE ratio.
MAT's earnings are expected to grow with 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y12.94%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MATTEL INC
NASDAQ:MAT (9/6/2024, 8:27:05 PM)
After market: 18.44 0 (0%)18.44
-0.22 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 16.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.59% | ||
| PM (TTM) | 5.94% | ||
| GM | 49.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)75.58%
EPS 3Y32.4%
EPS 5Y
EPS Q2Q%
EPS Next Y17.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.3%
Revenue growth 3Y5.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y