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MAT

Mattel NasdaqGS:MAT Stock Report

Last Price

US$18.94

Market Cap

US$6.7b

7D

-4.8%

1Y

1.2%

Updated

01 Oct, 2022

Data

Company Financials +
MAT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends0/6

MAT Stock Overview

Mattel, Inc., a children’s entertainment company, designs and produces toys and consumer products worldwide.

Mattel, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mattel
Historical stock prices
Current Share PriceUS$18.94
52 Week HighUS$26.99
52 Week LowUS$17.95
Beta1.22
1 Month Change-14.57%
3 Month Change-14.22%
1 Year Change1.23%
3 Year Change71.79%
5 Year Change21.80%
Change since IPO248.98%

Recent News & Updates

Sep 15
We Ran A Stock Scan For Earnings Growth And Mattel (NASDAQ:MAT) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Mattel (NASDAQ:MAT) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Sep 03
Should You Think About Buying Mattel, Inc. (NASDAQ:MAT) Now?

Should You Think About Buying Mattel, Inc. (NASDAQ:MAT) Now?

While Mattel, Inc. ( NASDAQ:MAT ) might not be the most widely known stock at the moment, it received a lot of...

Aug 08
Is Mattel, Inc. (NASDAQ:MAT) Trading At A 46% Discount?

Is Mattel, Inc. (NASDAQ:MAT) Trading At A 46% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Mattel, Inc...

Jul 27

Mattel: As Barbie Goes To Space, So Should The Stock

Mattel delivered a great quarter and reaffirmed its guidance in spite of a challenging environment. The company's Barbie and Hot Wheels categories continue to deliver impressive growth. The next growth drivers are set to come from the company's partnerships with SpaceX and Universal. From a valuation standpoint, Mattel stock has considerable room to run. Investment Thesis Mattel, Inc. (MAT) delivered a great quarter and re-affirmed its guidance for FY22 despite a challenging environment. In this article, I highlight how a combination of a strong, existing product line-up and an even stronger product pipeline make it well-positioned for sustainable long-term growth. Barbie and Hot Wheels Continue to Dazzle Q2 Revenue for MAT came in at $1.24 billion, up 20% YoY, comfortably beating analyst estimates by nearly $138 million. Adjusted EPS came in at $0.18, beating estimates by $0.12. This strong performance can be primarily attributed to the strength of the company's two iconic products: Barbie and Hot Wheels. The performance of Hot Wheels specifically was pleasantly surprising, as it posted a 31% YoY growth. With a 33% growth YTD, this product category is on track for a fifth consecutive year of growth thanks to the continued momentum seen in its Monster Trucks and the expanded Direct-to-Consumer offerings, which have been responsible for increased sales among its adult fans. Mattel has also released a series of Hot Wheels NFTs and is expected to launch its latest NFT collection, the Garage Series III very soon. The Barbie category also performed reasonably well, and the sales of this segment have already grown 9% till date. This is on top of the double-digit YoY growth in sales registered by this category in the last 2 years. Given that the Barbie movie, starring Margot Robbie and Ryan Gosling, is slated to hit the screens next summer, expect sales to pick up even more. The movie has already created so much buzz that I believe that this category is going to be a strong growth driver for the company in FY23. As such, I think investors have to take the management's announcement that they have not factored in the additional sales from the movie buzz with a pinch of salt. Overall, Mattel's existing line of products have done extremely well and, based on current evidence, they are set to continue to do so for the foreseeable future. SpaceX & Jurassic World: Mattel's Lineup Gets a Boost from the Past and the Future Not only does Mattel have a product line-up that is delivering, but the company also has an exciting lineup of products about to be launched. This is where things really start to get exciting and where I think the catalyst for future growth can be clearly seen. For starters, the company plans to globally re-launch the Monster High, Disney Princess and the Frozen franchises. While this is great, the bigger development has been the deals that the company has signed with Elon Musk's Space Exploration Technologies, or SpaceX, and with Universal Studios for Jurassic World and Minions. Featuring a variety of toys and collectibles, the SpaceX franchise is expected to be rolled out next year. I am more excited about the deal with Universal for Jurassic World. This is because, given that the latest movie, Dominion, marks the end of the Jurassic Park franchise after nearly 30 years, I expect a lot of nostalgia-driven sales for Mattel from this partnership. Overall, future product launches, especially from the partnerships inked with SpaceX and Universal, are set to be strong drivers of future growth and are also set to complement the current line of products. Mattel Operates in an Industry that is Virtually Recession Proof Finally, it's important to note that Mattel operates in an industry that is not only set for strong growth but is also virtually recession-proof. According to Fortune Business Insights, the global toy market is expected to grow from $141 billion in 2021 to $231 billion by 2028 at a CAGR of 7.8%. According to the same report, the Dolls segment has been one of the major categories, having captured nearly 30% market share in 2020. Given that Mattel houses one of the most popular dolls in the world, this should re-affirm the growth potential of this company in the long run. Furthermore, when the world went into lockdown back in late March 2020 as a result of COVID-19, total toy sales in the U.S. grew by 26% in the last few weeks of that month, according to NPD Group. Are parents really going to stop buying toys for their kids? No. There is, of course, the possibility that the company would see a drop in the sales of big-ticket items, such as the Barbie dollhouse, which it experienced in the second quarter. However, overall, given that the industry is virtually recession-proof, the impending economic slowdown is unlikely to hurt Mattel as badly as some of the other companies in different sectors. Valuation Forward P/E Multiple Approach Price Target $27.00 Projected Forward P/E multiple 14.2x Projected FY23 adjusted EPS $1.90 Mattel has set a goal to earn in excess of $1.90 in FY23, which would imply a 28% YoY growth (the high-end of the management's guidance for FY22 adjusted EPS is $1.48). This projection, in my opinion, is quite reasonable considering the company's product pipeline and the expected jump in sales, in FY23, as a consequence of the Barbie movie. The company is currently trading at 11.8x the projected FY23 earnings, which, in my opinion, is low, especially since its peer Hasbro (HAS) trades at 14.2x forward earnings and Mattel's own historical forward P/E is nearly 19x.

Shareholder Returns

MATUS LeisureUS Market
7D-4.8%-4.6%-2.5%
1Y1.2%-51.2%-23.2%

Return vs Industry: MAT exceeded the US Leisure industry which returned -51.2% over the past year.

Return vs Market: MAT exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is MAT's price volatile compared to industry and market?
MAT volatility
MAT Average Weekly Movement5.1%
Leisure Industry Average Movement8.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: MAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MAT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194536,300Ynon Kreizhttps://www.mattel.com

Mattel, Inc., a children’s entertainment company, designs and produces toys and consumer products worldwide. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as content, gaming, and lifestyle products for children under the Barbie, Monster High, American Girl, Polly Pocket, Spirit, and Enchantimals brands; dolls and books under the American Girl brand name; die-cast vehicles, tracks, playsets, and accessories for kids of all ages, and collectors under the Hot Wheels, Monster Trucks, Matchbox, CARS, and Mario Kart brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other lifestyle products under the Fisher-Price and Thomas & Friends, Power wheels, and Fireman Sam brands.

Mattel, Inc. Fundamentals Summary

How do Mattel's earnings and revenue compare to its market cap?
MAT fundamental statistics
Market CapUS$6.69b
Earnings (TTM)US$1.11b
Revenue (TTM)US$5.83b

6.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAT income statement (TTM)
RevenueUS$5.83b
Cost of RevenueUS$3.07b
Gross ProfitUS$2.77b
Other ExpensesUS$1.66b
EarningsUS$1.11b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.14
Gross Margin47.45%
Net Profit Margin19.01%
Debt/Equity Ratio149.1%

How did MAT perform over the long term?

See historical performance and comparison