MATTEL INC (MAT) Stock Fundamental Analysis
NASDAQ:MAT - Nasdaq - US5770811025 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MAT. MAT was compared to 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. With these ratings, MAT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MAT was profitable.
In the past year MAT had a positive cash flow from operations.
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
With an excellent Return On Assets value of 8.54%, MAT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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.
With an excellent Return On Invested Capital value of 9.23%, MAT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MAT is in line with the industry average of 8.00%.
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.
In the last couple of years the Profit Margin of MAT has declined.
MAT's Operating Margin of 13.82% is amongst the best of the industry. MAT outperforms 96.67% of its industry peers.
In the last couple of years the Operating Margin of MAT has grown nicely.
With an excellent Gross Margin value of 51.09%, MAT belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MAT is creating some value.
Compared to 1 year ago, MAT has less shares outstanding
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 3.30 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a better Altman-Z score (3.30) 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 Debt to FCF ratio of 4.02. This is in the better half of the industry: MAT outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that MAT has dependencies on debt 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 | 3.3 |
ROIC/WACC1.19
WACC7.73%
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.
Looking at the Current ratio, with a value of 2.43, MAT is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that MAT should not have too much problems paying its short term obligations.
MAT has a Quick ratio of 1.86. This is in the better half of the industry: MAT outperforms 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.
MAT shows a decrease in Revenue. In the last year, the revenue decreased by -0.73%.
MAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
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%
EPS Next 2Y4.33%
EPS Next 3Y4.34%
EPS Next 5Y6%
Revenue Next Year1.85%
Revenue Next 2Y1.87%
Revenue Next 3Y1.63%
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 11.39, the valuation of MAT can be described as very reasonable.
Based on the Price/Earnings ratio, MAT is valued cheaper than 93.33% of the companies in the same industry.
MAT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of MAT can be described as reasonable.
Based on the Price/Forward Earnings ratio, MAT is valued cheaper than 96.67% of the companies in the same industry.
MAT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAT indicates a somewhat cheap valuation: MAT is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.44 | ||
| EV/EBITDA | 8.02 |
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.
MAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.39
PEG (5Y)N/A
EPS Next 2Y4.33%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
No dividends for MAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.8
-0.5 (-2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners99.45%
Inst Owner Change-1.88%
Ins Owners0.62%
Ins Owner Change5.04%
Market Cap6.07B
Analysts84.44
Price Target23.93 (27.29%)
Short Float %4.11%
Short Ratio2.59
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)-0.35%
PT rev (3m)-8.46%
EPS NQ rev (1m)2.37%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-2.53%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.6 | ||
| P/S | 1.12 | ||
| P/FCF | 10.44 | ||
| P/OCF | 7.69 | ||
| P/B | 2.85 | ||
| P/tB | 15.62 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)1.65
EY8.78%
EPS(NY)1.77
Fwd EY9.44%
FCF(TTM)1.8
FCFY9.58%
OCF(TTM)2.45
OCFY13.01%
SpS16.71
BVpS6.6
TBVpS1.2
PEG (NY)11.39
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 | 3.3 |
F-Score7
WACC7.73%
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%
EPS Next 2Y4.33%
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 3Y1.63%
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%