Over the past week, Mattel Inc (MAT, Financial) has experienced a notable uptick in its stock price, with a 9.75% gain, reflecting positive investor sentiment. This surge is part of a broader trend over the past three months, during which the stock has climbed by 11.04%. Currently, with a market capitalization of $6.78 billion and a stock price of $19.72, Mattel's valuation according to the GF Value is deemed fairly valued. This is a shift from three months prior when the stock was considered modestly undervalued, with a past GF Value of $21.65 compared to the current GF Value of $21.56.
Introduction to Mattel Inc
Mattel Inc, a prominent player in the Travel & Leisure industry, is renowned for its diverse range of toy products. The company's portfolio includes iconic brands such as Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl. Mattel's business model involves selling to wholesale customers and directly to consumers, with a significant portion of its revenue generated from North America. The company's manufacturing operations are a mix of internal production and partnerships with external manufacturers. Mattel's market presence is bolstered by its ability to innovate and cater to the evolving preferences of children and families worldwide.
Assessing Mattel's Profitability
Mattel's financial health is reflected in its Profitability Rank of 6/10, indicating a stable position within the industry. The company's Operating Margin stands at 10.32%, surpassing 58.02% of 817 companies in the same sector. Additionally, Mattel's Return on Equity (ROE) is at 10.57%, higher than 64.84% of its peers, while the Return on Assets (ROA) at 3.50% and Return on Invested Capital (ROIC) at 5.30% both outperform the majority of competitors. These figures, coupled with seven years of profitability over the past decade, underscore Mattel's solid financial foundation and its ability to generate value for shareholders.
Growth Trajectory of Mattel
Mattel's Growth Rank is a robust 7/10, reflecting its consistent performance in expanding revenue and profitability. The company's 3-Year Revenue Growth Rate per Share is 5.10%, outpacing 42.67% of 778 companies in the industry. Over a five-year period, the Revenue Growth Rate per Share has been 4.00%, better than 69.33% of its competitors. Looking ahead, Mattel's Total Revenue Growth Rate is estimated at 2.25% for the next three to five years, which, while modest, still ranks above 8.19% of 171 companies. The 3-Year EPS without NRI Growth Rate stands at an impressive 19.70%, and the future EPS Growth Rate is projected at 11.20%, both indicators of the company's potential for sustained earnings expansion.
Key Shareholders in Mattel
PRIMECAP Management (Trades, Portfolio) is the leading shareholder in Mattel, holding 41,178,489 shares, which translates to an 11.66% stake in the company. Following closely is John Rogers (Trades, Portfolio) with 15,470,507 shares, accounting for 4.38% ownership. Mason Hawkins (Trades, Portfolio) also holds a significant portion with 8,840,411 shares, representing a 2.5% stake. These major investors' confidence in Mattel's strategy and growth prospects plays a crucial role in the company's market performance and investor relations.
Competitive Landscape
When compared to its competitors, Mattel holds its ground with a market cap of $6.78 billion. Hasbro Inc (HAS, Financial), with a larger market cap of $9.07 billion, is a key competitor, while Planet Fitness Inc (PLNT, Financial) and Amer Sports Inc (AS, Financial) have market caps of $5.27 billion and $7.15 billion, respectively. This competitive analysis highlights Mattel's significant presence in the industry and its ability to compete with companies of similar market capitalization.
Conclusion
In summary, Mattel Inc's recent stock performance and current valuation suggest a company that is fairly valued by the market. Its profitability and growth metrics demonstrate a strong financial position and potential for future earnings growth. The significant stakes held by top shareholders reflect confidence in the company's direction. When juxtaposed with its competitors, Mattel's market cap and financial health indicate a competitive stance in the Travel & Leisure industry. Investors may find Mattel an attractive option, given its solid fundamentals and positive market trends.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
