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 31 industry peers in the Leisure Products industry. While MAT has a great profitability rating, there are some minor concerns on its financial health. MAT is valued quite cheap, but it does not seem to be growing. These ratings would make MAT suitable for value investing!
1. Profitability
1.1 Basic Checks
MAT had positive earnings in the past year.
In the past year MAT had a positive cash flow from operations.
Each year in the past 5 years MAT has been profitable.
In the past 5 years MAT always reported a positive cash flow from operatings.
1.2 Ratios
MAT's Return On Assets of 8.54% is amongst the best of the industry. MAT outperforms 87.10% of its industry peers.
MAT has a Return On Equity of 24.88%. This is amongst the best in the industry. MAT outperforms 93.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.23%, MAT belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAT is in line with the industry average of 7.78%.
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
With an excellent Profit Margin value of 9.82%, MAT belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
In the last couple of years the Profit Margin of MAT has declined.
MAT has a Operating Margin of 13.82%. This is amongst the best in the industry. MAT outperforms 96.77% 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 51.09%, MAT belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
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 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.
The number of shares outstanding for MAT has been reduced compared to 5 years ago.
Compared to 1 year ago, MAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.19 indicates that MAT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.19, MAT is doing good in the industry, outperforming 61.29% of the companies in the same industry.
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.
MAT has a better Debt to FCF ratio (4.02) than 70.97% 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 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.82
WACC11.29%
2.3 Liquidity
A Current Ratio of 2.43 indicates that MAT has no problem at all paying its short term obligations.
With a Current ratio value of 2.43, MAT perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
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.
MAT has a better Quick ratio (1.86) than 77.42% of its industry peers.
| 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 9.27% over the past year.
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.
Looking at the last year, MAT shows a decrease in Revenue. The Revenue has decreased by -1.72% in the last 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)9.27%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%-5.66%
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.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y0.14%
EPS Next 2Y4.06%
EPS Next 3Y4.59%
EPS Next 5Y6%
Revenue Next Year1.96%
Revenue Next 2Y2.25%
Revenue Next 3Y2.21%
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.
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
With a Price/Earnings ratio of 10.22, the valuation of MAT can be described as very reasonable.
Based on the Price/Earnings ratio, MAT is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. MAT is valued rather cheaply when compared to this.
MAT is valuated reasonably with a Price/Forward Earnings ratio of 9.55.
Based on the Price/Forward Earnings ratio, MAT is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MAT to the average of the S&P500 Index (36.21), we can say MAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAT indicates a rather cheap valuation: MAT is cheaper than 83.87% of the companies listed in the same industry.
MAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MAT is cheaper than 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.34 | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MAT may justify a higher PE ratio.
PEG (NY)72.06
PEG (5Y)N/A
EPS Next 2Y4.06%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.86
-0.15 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners102.61%
Inst Owner Change-0.12%
Ins Owners0.64%
Ins Owner Change5%
Market Cap5.43B
Analysts82.22
Price Target24.59 (45.85%)
Short Float %2.72%
Short Ratio2.4
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)2.48%
PT rev (3m)1.7%
EPS NQ rev (1m)-25.82%
EPS NQ rev (3m)-29.76%
EPS NY rev (1m)-1.22%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)-4.33%
Revenue NQ rev (3m)-5.69%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.01 | ||
| P/FCF | 9.34 | ||
| P/OCF | 6.88 | ||
| P/B | 2.55 | ||
| P/tB | 13.98 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)1.65
EY9.79%
EPS(NY)1.77
Fwd EY10.47%
FCF(TTM)1.8
FCFY10.71%
OCF(TTM)2.45
OCFY14.54%
SpS16.75
BVpS6.61
TBVpS1.21
PEG (NY)72.06
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 | 3.19 |
F-Score7
WACC11.29%
ROIC/WACC0.82
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)9.27%
EPS 3Y7.83%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y0.14%
EPS Next 2Y4.06%
EPS Next 3Y4.59%
EPS Next 5Y6%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%-5.66%
Revenue Next Year1.96%
Revenue Next 2Y2.25%
Revenue Next 3Y2.21%
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%