Mattel Inc. Common Stock (MAT)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $394 million in annual free cash flow (8.7% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 17.7% above cost of capital
• Established organization with 31,000 employees providing operational scale

AI Analysis

Mattel Inc. Common Stock is a small-cap consumer cyclical company valued at $4.5 billion. The business generates $5.3 billion in annual revenue with a 2.0% net margin and $394 million in free cash flow. From a quality standpoint, Mattel shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.1 in the grey zone. On valuation, the stock is attractively valued at 11.9x earnings, with trades above its Graham Number with a negative 4% margin. Growth dynamics show revenue growing at 7.3% and profit growth of -24.6%. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Mattel's consistent 18% ROE at just 12x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $394 million in annual free cash flow (8.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer