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. MAT has an excellent profitability rating, but 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
In the past year MAT was profitable.
MAT had a positive operating cash flow in the past year.
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
MAT has a better Return On Assets (8.54%) than 90.00% of its industry peers.
MAT has a Return On Equity of 24.88%. This is amongst the best in the industry. MAT outperforms 93.33% of its industry peers.
MAT has a Return On Invested Capital of 9.23%. This is amongst the best in the industry. MAT outperforms 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 7.91%.
The last Return On Invested Capital (9.23%) for MAT is above the 3 year average (8.34%), which is a sign of increasing profitability.
| 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
The Profit Margin of MAT (9.82%) is better than 96.67% of its industry peers.
MAT's Profit Margin has declined in the last couple of years.
MAT has a Operating Margin of 13.82%. This is amongst the best in the industry. MAT outperforms 96.67% of its industry peers.
MAT's Operating Margin has improved in the last couple of years.
MAT has a better Gross Margin (51.09%) than 86.67% of its industry peers.
MAT's Gross Margin has improved in the last couple of years.
| 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
MAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MAT has less shares outstanding than it did 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 3.35 indicates that MAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of MAT (3.35) is better than 63.33% of its industry peers.
MAT has a debt to FCF ratio of 4.02. This is a neutral value as MAT would need 4.02 years to pay back of all of its debts.
MAT has a better Debt to FCF ratio (4.02) than 66.67% of its industry peers.
MAT has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
MAT has a Debt to Equity ratio of 1.10. This is in the lower half of the industry: MAT underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.19
WACC7.74%
2.3 Liquidity
MAT has a Current Ratio of 2.43. This indicates that MAT is financially healthy and has no problem in meeting its short term obligations.
MAT's Current ratio of 2.43 is in line compared to the rest of the industry. MAT outperforms 53.33% of its industry peers.
MAT has a Quick Ratio of 1.86. 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 1.86, MAT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.20% over the past year.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
The Revenue has decreased by -0.73% in the past year.
The Revenue has been growing slightly by 3.61% on average over the past years.
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.
Based on estimates for the next years, MAT will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 12.45, MAT is valued correctly.
MAT's Price/Earnings ratio is rather cheap when compared to the industry. MAT is cheaper than 93.33% of the companies in the same industry.
MAT is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
MAT is valuated reasonably with a Price/Forward Earnings ratio of 11.56.
MAT's Price/Forward 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/Forward Earnings ratio is at 21.76. MAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAT is valued a bit cheaper than 80.00% 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 | 11.41 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.02
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 |
20.55
+0.33 (+1.63%)
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 Cap6.64B
Analysts84.44
Price Target24 (16.79%)
Short Float %2.81%
Short Ratio2.32
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)-3.55%
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 | 12.45 | ||
| Fwd PE | 11.56 | ||
| P/S | 1.23 | ||
| P/FCF | 11.41 | ||
| P/OCF | 8.4 | ||
| P/B | 3.12 | ||
| P/tB | 17.07 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)1.65
EY8.03%
EPS(NY)1.78
Fwd EY8.65%
FCF(TTM)1.8
FCFY8.76%
OCF(TTM)2.45
OCFY11.9%
SpS16.71
BVpS6.6
TBVpS1.2
PEG (NY)9.02
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 | 3.35 |
F-Score7
WACC7.74%
ROIC/WACC1.19
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%