Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Mattel as such a stock due to the following factors:
- MAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $127.8 million.
- MAT is up 8.7% today from today's close.
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More details on MAT:
Mattel, Inc. designs, manufactures, and markets a range of toy products worldwide. The company operates in three segments: North America, International, and American Girl. It also publishes Advice and Activity books and the American Girl magazine. The stock currently has a dividend yield of 4.8%. MAT has a PE ratio of 13.7. Currently there is 1 analyst that rates Mattel a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Mattel has been 2.9 million shares per day over the past 30 days. Mattel has a market cap of $10.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.95 and a short float of 3.8% with 3.36 days to cover. Shares are down 34.4% year-to-date as of the close of trading on Thursday.
rates Mattel as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MAT has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Leisure Equipment & Products industry and the overall market on the basis of return on equity, MATTEL INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- Net operating cash flow has increased to -$139.74 million or 37.46% when compared to the same quarter last year. Despite an increase in cash flow of 37.46%, MATTEL INC is still growing at a significantly lower rate than the industry average of 177.27%.
- The gross profit margin for MATTEL INC is rather high; currently it is at 51.04%. Regardless of MAT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.66% trails the industry average.
- MAT, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Mattel Ratings Report.