Sekmadienis, 21 liepos, 2024
US Stocks

Mattel Inc Stock Analysis

Mattel Inc designs, manufactures, and sells a wide range of toys to customers and directly to consumers worldwide. Mattel’s vision is „creating the future of play.” The company aims to grow its market share and create long-term value for shareholders.

Mattel Inc believes that its brands are well-recognized worldwide among other brands. The portfolio consists of:

  • Barbie,
  • Monster High®,
  • Disney Classics®,
  • Ever After High®,
  • Little Mommy®,
  • Polly Pocket®,
  • Hot Wheels®,
  • Matchbox®,
  • CARS®,
  • Disney Planes™,
  • BOOMco®,
  • Radica®,
  • Toy Story®,
  • Max Steel®,
  • WWE®
  • Wrestling,
  • DC Comics™ ir daug kitų.
Mattel brands
Šaltinis: Mattel

Mattel Inc aims to increase its market share. It is necessary for them as the competitive pressure is very high. The company’s brand is well-known and recognized worldwide.

Income by segments and regions:

Pajamos pagal sekIncome by sectorstorius
Income by sectors
Income by regions
Income by regions

Finances

This company, which had been operating at a loss, we had almost written off, but we see that it managed to recover and operate profitably again. However, the recovery is still very weak. We haven’t seen anything encouraging since the beginning – Revenue. The average annual decrease in revenue over a 10-year period was -1.74%. A 0.12% increase in Revenue in 2023 does not qualify as growth. Profits and EPS also decreased.

The average annual EPS growth rate over a 10-year period was negative, reaching -13.57%. However, during the positive period starting from 2020, the average annual EPS growth rate was 19.68%. This indicates that the company still has potential.

And indeed, the Gross Margin, though slightly decreasing, still remains above 40%. Unfortunately, the Net Profit Margin last year did not even reach 4%. Negative past results are also reflected in the Equity. The average annual decrease in Retained Earnings is -2.44%. Over a 10-year period, the average annual decrease in the Book Value of shares is -4.32%.

However, the company maintains high and positive Working capital. Free cash flows in recent years have become positive and growing. The company has reduced its financial debt burden. This has allowed the profitability of Retained earnings to reach as high as 31.84%.

The company’s finances are still managed with a degree of risk. Total liabilities amount to approximately 200% of Equity. It would take as long as 12 years of 2023’s profit to cover the long-term debts.

If the company owners wanted to sell the business and invest the funds in U.S. Treasury 10-year bonds to receive the same return they got in 2023, they would need to sell the shares for $13.26 each (the market price at the time of writing is $18.64).

The F_Score indicator is very high, reaching 8. Therefore, you can start looking into this company. Our investment rating advises not to rush into investment decisions yet.

Investment Scoreboard:

Investment Scoreboard:
Investment Scoreboard

Mattel Inc Stocks

The company’s shares are listed on the NASDAQ stock exchange. The ticker symbol is MAT.

The company has not been paying dividends for a long time, which is good because the funds are needed to get back on its feet. However, the dividend policy is solely up to the Board of Directors. Previously, the dividend yield was higher than the average yield of the S&P 500 index stocks.

The company already revived its share buyback program in 2023. Last year, it allocated nearly 95% of its annual profit to this. This is a good signal from the management that the company is recovering.

Currently, the stocks are low risk. The price Standard deviation at the time of writing was 11.83%, and the beta was 0.92. However, the PEG ratio is completely unattractive at 1.17, and the equity risk premium is negative at -0.18%. This indicates that investors are currently preferring fixed-income instruments over Mattel stocks.

The GRAPES method assessed price perspective reaches $20.36. This is not a high perspective evaluation. It merely indicates that we expect high future performance from the company. According to our method, the maximum calculated price return can average around 12% annually.

MAT price perspective. MIN, MAX
Aipt price perspective. MIN, MAX

Assessments and forecasts of third parties

Artificial intelligence:

Mattel Inc. is a company that aims to grow its market share and create long-term value for shareholders. While the company’s brands are well-recognized, its financial position is concerning due to a high level of long-term obligations, unstable EPS dynamics, and a low 10-year average ROAE. The company has recently refrained from buying back its shares and paying dividends, which may impact investor attention.

Variants:

  1. Invest: If you believe that the company’s financial position will improve and its brands will remain strong.
  2. Don’t buy: If you’re concerned about the company’s finances and believe that there are better investment opportunities elsewhere.
  3. Sell: If you think that the company’s financial problems could worsen and you want to avoid potential losses.

Considering the current financial situation and market trends, predicting the exact stock price is challenging. However, the stock prices of Mattel Inc. may be unstable due to financial difficulties and investor uncertainties. It is recommended to monitor the company’s financial report updates and market news in order to make an informed decision.

Tradingview consensus:

MAT Tradingview consensus:
Tradingview consensus

Stock Analysis consensus:

MAT Stock Analysis consensus. Mattel Inc Stock
Stock Analysis consensus

Stocktwits consensus:

MAT Stocktwits consensus. Mattel Inc Stock
Stocktwits consensus

TA consensus:

Stock Price

Conclusions

The feeling that we found a gem in the market at an acceptable price is undeniable. As we can see, market participants are slowly beginning to rediscover Mattel shares as well. But we are not rushing to buy just yet. Our investment assessment requires waiting for much better company performance results. This company is under active monitoring.

A cup of coffee from you for this excellent analysis.

Company’s site

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