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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAT was profitable.
MAT had a positive operating cash flow in the past year.
Of the past 5 years MAT 4 years were profitable.
Each year in the past 5 years MAT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.82%, MAT is doing good in the industry, outperforming 65.63% of the companies in the same industry.
MAT has a Return On Equity of 14.44%. This is in the better half of the industry: MAT outperforms 75.00% of its industry peers.
MAT has a better Return On Invested Capital (10.48%) than 78.13% 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 10.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 14.44% | ||
| ROIC | 10.48% |
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
Looking at the Profit Margin, with a value of 5.38%, MAT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MAT has grown nicely.
Looking at the Operating Margin, with a value of 12.12%, MAT belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
MAT's Operating Margin has improved in the last couple of years.
MAT's Gross Margin of 48.66% is amongst the best of the industry. MAT outperforms 84.38% of its industry peers.
In the last couple of years the Gross Margin of MAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.12% | ||
| PM (TTM) | 5.38% | ||
| GM | 48.66% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MAT is still creating some value.
Compared to 1 year ago, MAT has less shares outstanding
MAT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a Altman-Z score (3.25) which is in line with its industry peers.
The Debt to FCF ratio of MAT is 2.42, which is a good value as it means it would take MAT, 2.42 years of fcf income to pay off all of its debts.
MAT has a Debt to FCF ratio of 2.42. This is in the better half of the industry: MAT outperforms 62.50% of its industry peers.
MAT has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
MAT has a worse Debt to Equity ratio (1.15) than 75.00% of its industry peers.
Although MAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.37
WACC7.63%
2.3 Liquidity
MAT has a Current Ratio of 2.49. This indicates that MAT is financially healthy and has no problem in meeting its short term obligations.
MAT has a Current ratio (2.49) which is comparable to the rest of the industry.
A Quick Ratio of 1.88 indicates that MAT should not have too much problems paying its short term obligations.
The Quick ratio of MAT (1.88) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.58% over the past year.
Measured over the past years, MAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.40% on average per year.
MAT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
Measured over the past years, MAT shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
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 Y15.83%
EPS Next 2Y12.5%
EPS Next 3Y12.07%
EPS Next 5Y10.87%
Revenue Next Year-1.27%
Revenue Next 2Y0.86%
Revenue Next 3Y1.75%
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.
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 12.70 indicates a correct valuation of MAT.
Compared to the rest of the industry, the Price/Earnings ratio of MAT indicates a somewhat cheap valuation: MAT is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MAT to the average of the S&P500 Index (24.41), we can say MAT is valued slightly cheaper.
MAT is valuated correctly with a Price/Forward Earnings ratio of 12.31.
68.75% of the companies in the same industry are more expensive than MAT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.59. MAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAT indicates a somewhat cheap valuation: MAT is cheaper than 71.88% of the companies listed in the same industry.
81.25% 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 | 6.84 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
MAT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MAT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MAT's earnings are expected to grow with 12.07% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y12.5%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MATTEL INC
NASDAQ:MAT (7/26/2024, 7:00:00 PM)
After market: 19.17 0 (0%)19.17
+0.26 (+1.37%)
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 Cap6.60B
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 12.7 | ||
| Fwd PE | 12.31 | ||
| 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)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 14.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.12% | ||
| PM (TTM) | 5.38% | ||
| GM | 48.66% | ||
| 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.88 | ||
| 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 Y15.83%
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