Should you buy Mattel stock? (July 2023)
- 8 months ago
Mattel stock analysis. MAT stock.
Visit our website for new ideas: https://www.overlookedalpha.com
Shares in Toy company Mattel have risen 20% this year as the stock rides the hype from the new Barbie movie which comes out this week.
At the latest share price, the company has a market cap of 7.6 billion. It’s got 462 million in cash and 2.3 billion in long term debt so the enterprise value is 9.5 billion.
Revenue over the last 12 months is 5.2 billion, net income is 266 million and free cash flow is 187 million. So Mattel stock is valued at 1.8 times revenue, 29 times earnings and 51 times free cash flow with a net income margin of 5.1%.
Mattel makes money from a large variety of toys but there are three brands that stand out. Fisher-Price which makes up 17% of revenue, Hot Wheels which makes up 21% and Barbie which makes up 25%.
The Barbie movie which comes out this week is tipped to be a blockbuster with an estimated 100m box office and it’s just the first of 17 other films in the pipeline that feature Mattel products.
Social media mentions and early reviews all point to this being a massive hit and google search volume for the term ‘barbie doll’ is already at a 5 year high.
Although we don’t know how much Mattel will make from box office receipts, the company has signed over 100 brand collaborations so its likely that the Barbie movie is going to provide a significant boost to this year’s revenue.
#mattelstock #investing #stockstotwatch #overlookedalpha
Visit our website for new ideas: https://www.overlookedalpha.com
Shares in Toy company Mattel have risen 20% this year as the stock rides the hype from the new Barbie movie which comes out this week.
At the latest share price, the company has a market cap of 7.6 billion. It’s got 462 million in cash and 2.3 billion in long term debt so the enterprise value is 9.5 billion.
Revenue over the last 12 months is 5.2 billion, net income is 266 million and free cash flow is 187 million. So Mattel stock is valued at 1.8 times revenue, 29 times earnings and 51 times free cash flow with a net income margin of 5.1%.
Mattel makes money from a large variety of toys but there are three brands that stand out. Fisher-Price which makes up 17% of revenue, Hot Wheels which makes up 21% and Barbie which makes up 25%.
The Barbie movie which comes out this week is tipped to be a blockbuster with an estimated 100m box office and it’s just the first of 17 other films in the pipeline that feature Mattel products.
Social media mentions and early reviews all point to this being a massive hit and google search volume for the term ‘barbie doll’ is already at a 5 year high.
Although we don’t know how much Mattel will make from box office receipts, the company has signed over 100 brand collaborations so its likely that the Barbie movie is going to provide a significant boost to this year’s revenue.
#mattelstock #investing #stockstotwatch #overlookedalpha