Mattel Inc
MAT: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$81.00 | Zpdrrc | Btlzxffn |
Mattel Positioned to Deliver Profit Margin Growth Despite Slowing Sales, Thanks to Brands in Demand
Business Strategy and Outlook
Mattel continues to harvest gains from its turnaround, delivering above break-even operating margins starting in 2019 and reaching around 14% in 2021. We expect Mattel to produce further adjusted operating margin expansion ahead, helped by the execution of its $250 million cost-saving program. While the shift to a capital-light strategy should offer lower capital and operating expenditures than in the past (supporting profit growth while allowing for investment in product innovation), near-term expenses could be inflated by the tactical investment in dolls and vehicles capacity as well as input cost increases.