Mattel | #01
This Week's Most Undervalued Stock with Momentum is Mattel, Inc.
Hey there - as promised last week, here is Closingbell Gems #01. This week we provide data for Mattel, Inc.
But first, some housekeeping👇
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You’re welcome to reply to this email with any analysis or thoughts you have on Mattel, Inc OR head over to this post on Closingbell to weigh in. We’ll share the best insights in next week’s newsletter with over 50,000 people!
Table of Contents
Summary: Our Objective, How Did We Find This Company
About Mattel
Recent Headlines
About The CEO
Market Metrics vs Industry
Forecasted Earnings
Insider Trades [Coming Soon]
Historical Revenue and Profit [Coming Soon]
Mini-Glossary
Our Objective
The objective of this newsletter is NOT to provide you with “guaranteed” returns or investment ideas. All investments carry with them some level of risk.
Instead, the objective of Closingbell Gems 💎 is to produce data-driven investment ideas for you, every week. We are reporting the data as it stands, without any subjective stock analysis. If one of these investment ideas intrigues you, you can then do the necessary due diligence before making any sort of investment.
How Did We Find This Company?
Our Proprietary Value Index: We developed our Proprietary Valuation Index 7 years ago. It contains an amalgam of valuation techniques, combined into one easy-to-read number between 0% and 100%. 50% is considered fairly valued, under 50% is considered undervalued, over 50% is considered overvalued.
Closingbell Pro Screener: We use our Closingbell Pro screener to identify companies in this newsletter. Specifically, we search for: (a) stocks > $100m market cap, (b) valuation index between 0% - 40%, and (c) >10% share price gain over 6 months. We don’t exclude any industries.
Now onto Mattel, Inc👇
Mattel, Inc
Mattel, Inc had 4 buy ratings on the Closingbell app and had a Closingbell Valuation Index of 24% making it relatively undervalued against its peers.
What is Mattel?
Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers.
The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, handheld and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys.
Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl.
In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). Just over half of its net sales are in North America, while the remainder stems from international markets.
📰 Recent Headlines
About the CEO: Ynon Kreiz
On April 17, 2018, Ynon Kreiz was appointed as the Chief Executive Officer of Mattel, Inc. effective as of April 26, 2018.
Mr. Kreiz, served as Chief Executive Officer of Maker Studios, Inc. (Maker Studios), a global digital media and content network company that was acquired by The Walt Disney Company, from May 2013 to January 2015, and served as Chairman of its Board from June 2012 to May 2014.
Before joining Maker Studios, from June 2008 to June 2011, Mr. Kreiz was Chairman and Chief Executive Officer of Endemol Group, one of the world's leading television production companies.
Mr. Kreiz has served as a director of Warner Music Group Corp. since May 2015 and a member of its audit committee since April 2016. He also currently serves as Chairman of the Board of Showmax and is on the Board of Advisors of UCLA's Anderson Graduate School of Management.
Comparison of Fundamentals Against NASDAQ
Market Metrics
👉 P/E Ratio: Investors may regard companies with lower P/Es to be relatively less expensive.
👉 Leverage Ratio: Lower leverage in a company's capital structure can mean lower financial risk for investors.
👉 Volatility: The higher the volatility, the more the share price moves up and down, and the more uncertain (riskier) returns may be.
👉 Interest Cover Ratio: A higher number can indicate the company is in a better position to service its debt under different scenarios.
Fundamental Ratios
👉 Earnings Yield (%): Higher earnings yields can be interpreted as representing higher returns for an investment at the current share price.
👉 Price to Book Ratio: A lower price to book ratio can indicate a more attractive investment, according to some investors.
👉 Return on Assets: A higher return on assets is often thought by investors to indicate a more efficient and profitable company.
👉 Return on Equity: A higher return on equity is often thought by investors to indicate a more profitable company.
👉 Price to Revenue: Lower ratio is often thought to represent a more attractive investment by some investors.
Forecasted Earnings
You should weigh-in 🥊
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Disclaimer: The information that Closingbell provides is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. It does not constitute a recommendation to buy or sell any stock. This email is not intended as legal, financial or investment advice and should not be construed or relied on as such. Closingbell is not responsible for any damages. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Closingbell has no position in any stocks mentioned.