MAT - Embedded Expectations Analysis - 2020 10 13
Mattel, Inc. (MAT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 26.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their revenue, operations disruptions, and growth marginSpecifically, management may have concerns about the revenue impact of industry-wide delay in theatrical film releases and the entertainment shift with Minions. Furthermore, they may lack confidence in their ability to execute their e-commerce strategy and sustain their regional performance and gross sales, and in the growth potential of the toys and games industry. Additionally, they may have concerns about the sustainability of open retail outlets, growth margin headwinds, and potential plant closures. Moreover, they may lack confidence in their ability to improve revenue performance in H2 2020, balance their production levels, and maintain their point-of-sale performance. Finally, they may be overstating their ability to be flexible and results-oriented, and the capabilities of their Barbie Fashionistas segment
Mattel is a global children's entertainment company that engages in the design and production of toys and consumer products. The company's portfolio of owned and licensed brands and products are organized into the following categories: Dolls, which include brands such as Barbie, American Girl, Enchantimals, and Polly Pocket; Infant, Toddler, and Preschool, which include brands such as Fisher-Price and Thomas & Friends, Power Wheels, Fireman Sam, and Shimmer and Shine (Nickelodeon); Vehicles, which include brands such as Hot Wheels, Matchbox, CARS (Disney Pixar), and Jurassic World (NBCUniversal); Action Figures, Building Sets, and Games, which include brands such as MEGA, UNO and WWE.
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