MATTEL INC (MAT) Stock Fundamental Analysis
USA - NASDAQ:MAT - US5770811025 - Common Stock
18 USD
-0.07 (-0.39%)
18.02 USD
+0.02 (+0.11%)
Overall MAT gets a fundamental rating of 6 out of 10. We evaluated MAT against 33 industry peers in the Leisure Products industry. MAT scores excellent on profitability, but there are some minor concerns on its financial health. MAT is valued quite cheap, but it does not seem to be growing. These ratings could make MAT a good candidate 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.
MAT had positive earnings in each of the past 5 years.
MAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MAT's Return On Assets of 8.42% is amongst the best of the industry. MAT outperforms 87.88% of its industry peers.
MAT has a better Return On Equity (24.23%) than 96.97% of its industry peers.
MAT has a better Return On Invested Capital (10.20%) than 84.85% of its industry peers.
MAT had an Average Return On Invested Capital over the past 3 years of 8.34%. This is in line with the industry average of 7.26%.
The 3 year average ROIC (8.34%) for MAT is below the current ROIC(10.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 24.23% | ||
| ROIC | 10.2% |
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
MAT's Profit Margin of 9.86% is amongst the best of the industry. MAT outperforms 100.00% of its industry peers.
MAT's Profit Margin has declined in the last couple of years.
MAT has a better Operating Margin (13.82%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of MAT has grown nicely.
The Gross Margin of MAT (51.48%) is better than 75.76% 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) | 9.86% | ||
| GM | 51.48% |
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) below the Cost of Capital (WACC), MAT is destroying value.
MAT has less shares outstanding than it did 1 year ago.
MAT has less 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 3.11 indicates that MAT is not in any danger for bankruptcy at the moment.
MAT has a Altman-Z score (3.11) which is in line with its industry peers.
The Debt to FCF ratio of MAT is 4.41, which is a neutral value as it means it would take MAT, 4.41 years of fcf income to pay off all of its debts.
MAT's Debt to FCF ratio of 4.41 is fine compared to the rest of the industry. MAT outperforms 69.70% of its industry peers.
MAT has a Debt/Equity ratio of 0.80. This is a neutral value indicating MAT is somewhat dependend on debt financing.
MAT has a worse Debt to Equity ratio (0.80) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.84
WACC12.13%
2.3 Liquidity
A Current Ratio of 1.62 indicates that MAT should not have too much problems paying its short term obligations.
MAT has a Current ratio of 1.62. This is in the lower half of the industry: MAT underperforms 75.76% of its industry peers.
A Quick Ratio of 1.12 indicates that MAT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, MAT is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
MAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.27%, which is quite good.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
The Revenue has decreased by -1.72% in the past year.
MAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
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
The Earnings Per Share is expected to grow by 5.10% on average over the next years.
Based on estimates for the next years, MAT will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y-0.01%
EPS Next 2Y4.74%
EPS Next 3Y5.75%
EPS Next 5Y5.1%
Revenue Next Year1.64%
Revenue Next 2Y2.26%
Revenue Next 3Y2.26%
Revenue Next 5Y2%
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
MAT is valuated reasonably with a Price/Earnings ratio of 10.91.
96.97% of the companies in the same industry are more expensive than MAT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MAT to the average of the S&P500 Index (27.76), we can say MAT is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.07, the valuation of MAT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MAT is valued cheaper than 96.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.21. MAT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAT is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
81.82% 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 | 10.95 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The excellent profitability rating of MAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.74%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
MAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18
-0.07 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change0%
Ins Owners0.64%
Ins Owner Change2.95%
Market Cap5.80B
Analysts83.33
Price Target25.25 (40.28%)
Short Float %2.9%
Short Ratio2.33
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)48.16%
Min EPS beat(2)26.33%
Max EPS beat(2)70%
EPS beat(4)4
Avg EPS beat(4)46.65%
Min EPS beat(4)18.88%
Max EPS beat(4)71.4%
EPS beat(8)7
Avg EPS beat(8)34.14%
EPS beat(12)9
Avg EPS beat(12)69%
EPS beat(16)13
Avg EPS beat(16)88.39%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-4%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-4%
Max Revenue beat(4)4.12%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.89%
Revenue beat(16)9
Avg Revenue beat(16)1.49%
PT rev (1m)-0.73%
PT rev (3m)5.22%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-5.9%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.07 | ||
| P/S | 1.09 | ||
| P/FCF | 10.95 | ||
| P/OCF | 7.81 | ||
| P/B | 2.67 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)1.65
EY9.17%
EPS(NY)1.79
Fwd EY9.93%
FCF(TTM)1.64
FCFY9.13%
OCF(TTM)2.31
OCFY12.81%
SpS16.56
BVpS6.74
TBVpS1.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 24.23% | ||
| ROCE | 16.31% | ||
| ROIC | 10.2% | ||
| ROICexc | 12.63% | ||
| ROICexgc | 24.21% | ||
| OM | 13.82% | ||
| PM (TTM) | 9.86% | ||
| GM | 51.48% | ||
| FCFM | 9.92% |
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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.41 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 126.86% | ||
| Cap/Sales | 4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.01% | ||
| Profit Quality | 100.62% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.11 |
F-Score7
WACC12.13%
ROIC/WACC0.84
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 Y-0.01%
EPS Next 2Y4.74%
EPS Next 3Y5.75%
EPS Next 5Y5.1%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y-0.48%
Revenue growth 5Y3.61%
Sales Q2Q%-5.66%
Revenue Next Year1.64%
Revenue Next 2Y2.26%
Revenue Next 3Y2.26%
Revenue Next 5Y2%
EBIT growth 1Y7.88%
EBIT growth 3Y-1.12%
EBIT growth 5Y58.17%
EBIT Next Year46.8%
EBIT Next 3Y15.67%
EBIT Next 5YN/A
FCF growth 1Y46.76%
FCF growth 3Y21.41%
FCF growth 5Y56.06%
OCF growth 1Y36.98%
OCF growth 3Y18.14%
OCF growth 5Y36.59%