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Mattel Inc

MAT: XNAS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
$81.00ZpdrrcBtlzxffn

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.

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