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Mattel Inc MAT

Morningstar Rating
$19.52 −0.18 (0.91%)
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Company Report

Mattel Set for Another Year of Flat Sales as the Toy Industry Struggles to Grow

Mattel continues to harvest gains from its turnaround, delivering above break-even operating margins starting in 2019 and reaching around 12% in 2023. Despite the expectation of little sales growth, we expect Mattel to produce operating margin expansion in 2024, thanks to its newly launched $200 million cost-saving program. Additionally, the firm's shift to a capital-light strategy has provided lower capital and operating expenditures than in the past (supporting profit growth while allowing for investment in product innovation), but profits could be hurt by tactical investments in dolls and vehicles as well as logistics and input cost inflation.

Price vs Fair Value

MAT is trading at a 22% discount.
Price
$19.52
Fair Value
$65.00
Uncertainty
Medium
1-Star Price
$73.76
5-Star Price
$52.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Mattel's size allows it to fund new products, expand into high-growth emerging markets, and make acquisitions, while its portfolio of brands lends itself to scalable expansion in new categories like digital and new franchises.

Bears

The target market for traditional toy manufacturers could continue to shrink as a percentage of total toy sales, hurt by digital content that becomes more pervasive in product selection.

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News

Trading Information

Previous Close Price
$19.70
Day Range
$19.3219.72
52-Week Range
$15.3622.64
Bid/Ask
$19.28 / $19.67
Market Cap
$6.90 Bil
Volume/Avg
2.2 Mil / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
17.43
Price/Sales
1.28
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers. The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, hand-held and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys. Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl. In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). More than 50% of its net sales are generated from North America, with the remainder stemming from international markets.
Sector
Consumer Cyclical
Industry
Leisure
Stock Style Box
Small Core
Total Number of Employees
33,900

Competitors

Valuation

Metric
MAT
HAS
DIS
Price/Earnings (Normalized)
17.4319.9427.99
Price/Book Value
3.216.572.04
Price/Sales
1.281.402.31
Price/Cash Flow
8.0113.3216.29
Price/Earnings
MAT
HAS
DIS

Financial Strength

Metric
MAT
HAS
DIS
Quick Ratio
1.550.770.69
Current Ratio
2.331.130.84
Interest Coverage
3.75−8.303.37
Quick Ratio
MAT
HAS
DIS

Profitability

Metric
MAT
HAS
DIS
Return on Assets (Normalized)
2.23%4.18%4.22%
Return on Equity (Normalized)
6.85%15.48%8.71%
Return on Invested Capital (Normalized)
4.71%8.04%5.86%
Return on Assets
MAT
HAS
DIS
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HAS
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