NasdaqGS:MAT

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 22.5% below our estimate of its fair value

Earnings are forecast to grow 58.61% per year

Risk Analysis

No risks detected for MAT from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Mattel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

MAT

0.5%

US Leisure

-1.3%

US Market


1 Year Return

23.6%

MAT

87.6%

US Leisure

18.5%

US Market

Return vs Industry: MAT underperformed the US Leisure industry which returned 87.6% over the past year.

Return vs Market: MAT exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

MATIndustryMarket
7 Day0.5%0.5%-1.3%
30 Day10.2%22.9%5.3%
90 Day9.8%37.4%7.5%
1 Year23.6%23.6%91.6%87.6%21.3%18.5%
3 Year-19.0%-19.0%8.8%1.9%42.4%32.9%
5 Year-43.9%-49.5%24.4%12.1%84.2%63.5%

Price Volatility Vs. Market

How volatile is Mattel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mattel undervalued compared to its fair value and its price relative to the market?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAT ($12.45) is trading below our estimate of fair value ($16.07)

Significantly Below Fair Value: MAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MAT is unprofitable, so we can't compare its PE Ratio to the US Leisure industry average.

PE vs Market: MAT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MAT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MAT is overvalued based on its PB Ratio (50.1x) compared to the US Leisure industry average (4.1x).


Next Steps

Future Growth

How is Mattel forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MAT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MAT's is expected to become profitable in the next 3 years.

Revenue vs Market: MAT's revenue (3.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MAT's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAT's Return on Equity is forecast to be very high in 3 years time (46.4%).


Next Steps

Past Performance

How has Mattel performed over the past 5 years?

-40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAT is currently unprofitable.

Growing Profit Margin: MAT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MAT is unprofitable, and losses have increased over the past 5 years at a rate of 40.7% per year.

Accelerating Growth: Unable to compare MAT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MAT is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (8.7%).


Return on Equity

High ROE: MAT has a negative Return on Equity (-289.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mattel's financial position?


Financial Position Analysis

Short Term Liabilities: MAT's short term assets ($2.0B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: MAT's short term assets ($2.0B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: MAT's debt to equity ratio (3773.6%) is considered high.

Reducing Debt: MAT's debt to equity ratio has increased from 82% to 3773.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MAT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MAT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Mattel current dividend yield, its reliability and sustainability?

0.44%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MAT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MAT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MAT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MAT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Consumer Durables industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Ynon Kreiz (55 yo)

2.5yrs

Tenure

US$15,514,997

Compensation

Mr. Ynon Kreiz has been an Independent Director of Warner Music Group Corp. since May 9, 2016. He serves as a Director and Chief Executive Officer of Mattel, Inc. since June 13, 2017 and April 26, 2018 res ...


CEO Compensation Analysis

Compensation vs Market: Ynon's total compensation ($USD15.51M) is above average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Ynon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ynon Kreiz
Executive Chairman & CEO2.5yrsUS$15.51m0.035%
$ 1.5m
Richard Dickson
President & COO5.75yrsUS$7.75m0.056%
$ 2.4m
Robert Normile
Executive VP9.67yrsUS$3.68m0.048%
$ 2.1m
Roberto Isaias
Executive VP & Chief Supply Chain Officer1.67yrsUS$2.67m0.014%
$ 613.3k
Anthony DiSilvestro
Chief Financial Officer0.25yrno datano data
Sven Gerjets
Executive VP & Chief Technology Officer3.25yrsno datano data
David Zbojniewicz
Vice-President Investor Relationsno datano datano data
Amanda Thompson
Executive VP & Chief People Officer3.08yrsUS$2.23m0.018%
$ 774.4k
Geoffrey Walker
Chief Strategic Technology Officer & Executive VP7.5yrsUS$2.30mno data
Susan Lecker
Executive VP & Chief Brands Officer of Toybox Division5.25yrsno datano data
Steve Totzke
Executive VP & Chief Commercial Officerno datano data0.0079%
$ 341.6k
Lisa McKnight
SVP & GM of Barbie4.67yrsno datano data

4.0yrs

Average Tenure

54yo

Average Age

Experienced Management: MAT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ynon Kreiz
Executive Chairman & CEO2.5yrsUS$15.51m0.035%
$ 1.5m
Michael Dolan
Independent Lead Director5.5yrsUS$320.00k0.041%
$ 1.8m
Richard Bradley
Independent Director2.42yrsUS$250.00kno data
Dominic Ng
Independent Director14.58yrsUS$280.00k0.0027%
$ 118.3k
Diana Ferguson
Director0.25yrno datano data
Ann Lewnes
Independent Director5.67yrsUS$270.00k0.0050%
$ 218.1k
Roger Lynch
Independent Director2.17yrsUS$265.00k0.0023%
$ 99.8k
Judy Olian
Independent Director2.08yrsUS$255.00kno data
Adriana Cisneros
Independent Director2.17yrsUS$247.50kno data
Soren Laursen
Independent Director2.42yrsUS$378.49k0.0030%
$ 129.1k

2.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MAT's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mattel, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mattel, Inc.
  • Ticker: MAT
  • Exchange: NasdaqGS
  • Founded: 1945
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$4.319b
  • Shares outstanding: 346.90m
  • Website: https://www.mattel.com

Number of Employees


Location

  • Mattel, Inc.
  • 333 Continental Boulevard
  • El Segundo
  • California
  • 90245-5012
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MATNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1962
MTTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1962
MTTXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1962
MTTSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1962
MATWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1962
0JZHLSE (London Stock Exchange)YesCommon StockGBUSDJan 1962
MTTETLX (Eurotlx)YesCommon StockITEURJan 1962
MAT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1962

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:49
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.