Mattel, Inc.
Mattel, Inc. Fundamental Analysis
Mattel, Inc. (MAT) shows moderate financial fundamentals with a PE ratio of 8.94, profit margin of 9.27%, and ROE of 22.75%. The company generates $5.3B in annual revenue with weak year-over-year growth of -0.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MAT's fundamental strength across five key dimensions:
Efficiency Score
WeakMAT struggles to generate sufficient returns from assets.
Valuation Score
ModerateMAT shows balanced valuation metrics.
Growth Score
WeakMAT faces weak or negative growth trends.
Financial Health Score
ModerateMAT shows balanced financial health with some risks.
Profitability Score
ModerateMAT maintains healthy but balanced margins.
Key Financial Metrics
Is MAT Expensive or Cheap?
P/E Ratio
MAT trades at 8.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MAT's PEG of 13.94 indicates potential overvaluation.
Price to Book
The market values Mattel, Inc. at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.53 times EBITDA. This is generally considered low.
How Well Does MAT Make Money?
Net Profit Margin
For every $100 in sales, Mattel, Inc. keeps $9.27 as profit after all expenses.
Operating Margin
Core operations generate 9.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.75 in profit for every $100 of shareholder equity.
ROA
Mattel, Inc. generates $7.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mattel, Inc. produces operating cash flow of $532.93M, showing steady but balanced cash generation.
Free Cash Flow
Mattel, Inc. produces free cash flow of $326.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.12 in free cash annually.
FCF Yield
MAT converts 7.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How MAT Stacks Against Its Sector Peers
| Metric | MAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.94 | 23.71 | Better (Cheaper) |
| ROE | 22.75% | 1187.00% | Weak |
| Net Margin | 9.27% | 2531.00% | Weak |
| Debt/Equity | 1.23 | 0.77 | Weak (High Leverage) |
| Current Ratio | 2.06 | 2.82 | Strong Liquidity |
| ROA | 7.88% | -8521.00% (disorted) | Weak |
MAT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mattel, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.26%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
251.33%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
126.77%
Industry Style: Cyclical, Growth, Discretionary
High Growth