Ticker (Exchange) – MAT (NASDAQ)
ISIN – US5770811025
Current Price – $20.34
Target Price – $23.92
Growth Potential – 17.6%🔥
Investment Horizon – 1 year
Mattel is an American company and one of the largest toy manufacturers in the world, best known for its Barbie and Hot Wheels brands. Mattel demonstrates strong financial performance but remains undervalued by the market. The American economy is performing better than expected, and consumer spending remains strong, creating favorable conditions for the company’s business. The fair value of Mattel shares is estimated at $23.92, with a growth potential of 17.6%.
Investment Thesis
🔼 Strong Financial Performance. Mattel delivered solid results in its Q3 2024 report. Although revenue declined by 3.9% YoY to $1.84b, net income surged by 154% to $372.4m, equating to earnings per share (EPS) of $1.10. Revenue met market expectations, while earnings exceeded forecasts by 16%. The net profit margin rose from 7.6% to 20%, largely due to cost reductions. The company expects an average annual revenue growth rate of 2.8% over the next three years.
🔼 Attractive Valuation. Mattel shares have shown moderate growth of 7.7% since the beginning of the year. They are currently trading at a forward price-to-earnings (FWD P/E) ratio of 14, below the sector median of 17 and the company’s five-year average of 24.8.
🔽 Risks. If Donald Trump wins the upcoming U.S. presidential election, it could lead to increased import tariffs on Chinese goods, which would raise costs for Mattel and potentially reduce its profitability.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN – US5770811025
Current Price – $20.34
Target Price – $23.92
Growth Potential – 17.6%🔥
Investment Horizon – 1 year
Mattel is an American company and one of the largest toy manufacturers in the world, best known for its Barbie and Hot Wheels brands. Mattel demonstrates strong financial performance but remains undervalued by the market. The American economy is performing better than expected, and consumer spending remains strong, creating favorable conditions for the company’s business. The fair value of Mattel shares is estimated at $23.92, with a growth potential of 17.6%.
Investment Thesis
🔼 Strong Financial Performance. Mattel delivered solid results in its Q3 2024 report. Although revenue declined by 3.9% YoY to $1.84b, net income surged by 154% to $372.4m, equating to earnings per share (EPS) of $1.10. Revenue met market expectations, while earnings exceeded forecasts by 16%. The net profit margin rose from 7.6% to 20%, largely due to cost reductions. The company expects an average annual revenue growth rate of 2.8% over the next three years.
🔼 Attractive Valuation. Mattel shares have shown moderate growth of 7.7% since the beginning of the year. They are currently trading at a forward price-to-earnings (FWD P/E) ratio of 14, below the sector median of 17 and the company’s five-year average of 24.8.
🔽 Risks. If Donald Trump wins the upcoming U.S. presidential election, it could lead to increased import tariffs on Chinese goods, which would raise costs for Mattel and potentially reduce its profitability.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
