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Mattel Inc (NYSE:MAT) Stock Overview: All You Need to Know About Mattel Inc

TABLE OF CONTENTS

Mattel Inc (NYSE:MAT) Stock Overview: All You Need to Know About Mattel Inc

Mattel Inc (NYSE:MAT) Stock Overview: All You Need to Know About Mattel Inc

Vantage Updated Updated Fri, 2024 January 26 10:23

What is Mattel Inc? 

If you’re not already familiar with Mattel, you should at least have seen the pink that is decorating the stores this summer – Barbie is back in town and hotter than ever, thanks to the latest live-action Barbie movie! In fact, Hollywood has made its comeback as the fourth-biggest box office weekend of all time [1]

Now let’s delve into Mattel’s roots. 

Originally known as the largest toy company, Mattel designs, manufactures, markets and distributes a wide variety of toy products. Their impressive portfolio of brands includes Mattel Girls & Boy Brands, which feature beloved classics such as Barbie dolls, clothing and accessories. Additionally, they have other popular brands like Polly Pocket, Disney Classics and Monster High, Hot Wheels toy die-cast vehicles, CARS, Radicam Toy Story, Max Steel, WWE Wrestling and Batman. Besides these, they also offer an array of games and puzzles suitable for children of all ages [2]

History [3]

Mattel Inc. was founded in 1945 by Harold “Matt” Matson and Ruth and Elliot Handler in a humble garage, originally operating under the name Mattel Creations. The company initially embarked on its journey by selling picture frames and later utilised frame remnants to create dollhouse furniture.  

The company’s real breakthrough in the toy industry occurred in 1947 with the introduction of its first line of musical toys. Today, Mattel stands as the world’s largest toy company, designing, manufacturing, marketing, and distributing a wide array of toy products across 150 countries.

In 2002, approximately half of Mattel’s revenues were attributed to three major retail customers: Wal-Mart Stores, Inc., Toys ‘R’ Us, Inc., and Target Corporation. Throughout the years, Mattel’s toys have brought joy to multiple generations of children across the globe. 

Mattel ventured into a new segment in 2019, launching its first comprehensive monster truck franchise, Hot Wheels Monster Trucks. That same year marked Barbie’s 60th anniversary. A year later, in 2020, Hot Wheels celebrated two major achievements: the production of its 8 billionth die-cast vehicle and exceeding $1 billion in annual revenue. The card game UNO, another of Mattel’s iconic products, celebrated its 50th anniversary in 2021. This milestone was commemorated with a series of products, partnerships and events, including the inaugural UNO Championship Series and the crowning of the first-ever UNO World Championship. 

In a pioneering move, Mattel became the first top company to foray into the world of digital assets, launching the Hot Wheels NFT Garage series. In February 2022, Barbie broadened her media presence with her first Big Game commercial. She shared screen time with Rocket Homes, Rocket Mortgage and renowned actress, producer and author Anna Kendrick. Mattel’s most recent accomplishment includes a multi-year global licensing partnership that enabled the launch of a new and reimagined line of Disney Princess and Disney Frozen dolls. 

Mattel’s Share Price 2023 [4]

Here is how Mattel’s company has been performing on the stock market for the year 2023:

Chart 1: Mattel’s Share price performance for the year 2023 (Website team: Image location chart 1 – Mattel Inc Stock Article.png)

In 2023, Mattel’s share price fell on 9 March following poor year-end results, ultimately reaching lows of $15.71 in March. It has since been on an upwards trend, surging to $22.03 on 12 July.

Mattel Stock Price History (Annual)
YearAverage Stock PriceYear OpenYear HighYear LowYear CloseAnnual % Change
202318.298117.890021.330016.000018.14001.68%
202221.737621.740026.970016.240017.8400-17.25%
202120.434417.250022.860017.250021.560023.55%
202011.801913.295018.12007.230017.450028.78%
201912.08789.760017.07009.200013.550035.64%
201815.001716.020017.92009.26009.9900-35.05%
201720.410727.342030.298913.040015.3800-41.85%
201629.352025.087432.031422.746026.44916.44%
201522.290126.187626.320617.848524.8496-6.57%
201430.298838.997738.997724.437526.5958-32.07%
201334.824029.299939.351628.424139.154134.29%

Table 1: History of Mattel’s annual stock price

When was Mattel listed?

Mattel first made its public stock offering and was listed in 1963 on the New York Stock Exchange after its phenomenal success with Barbie [5]. Their sales also skyrocketed that same year from $26 million to over $100 million in 1965 with the Chatty Cathy doll.

About the stock Mattel 

Mattel trading information 

  • Primary exchange: NASDAQ
  • Ticker: MAT
  • Country: U.S. 
  • Currency: USD 
  • Trading hours:
    • Main: 9:30am to 4pm ET, Mon to Fri
    • Pre-market: 4:00am to 9:30am 
    • After-market: 4pm to 8pm 
  • Sector [5]: Consumer Discretionary
  • Market capitalisation: $7.63B as of 25 July 2023

Dividend history and yield [6]

Mattel, Inc. currently does not pay out any dividends to their shareholders. The company last paid out dividends in August 2017.

The toymaker announced that it would suspend its quarterly dividend in October 2020 after the bankruptcy of its largest retailer Toys’R’Us [7]

Stock split history [8]

Since its listing in 1963, Mattel has undergone a total of 5 stock splits, with the most recent split on 4 March, 1996. 

One MAT share bought prior to November 18th, 1991, would equal 3.662109375 MAT shares today.

Stock split list

DateStock SplitMultipleCumulative multiple
1996-03-045:4x1.25x3.662109375
1995-01-235:4x1.25x2.9296875
1994-01-105:4x1.25x2.34375
1992-06-033:2x1.5x1.875
1991-11-185:4x1.25x1.25

Table 2: Mattel Inc. stock split list

What could affect Mattel’s share price [9]

Changes in demand

Despite the toy industry’s historical resilience during economic downturns, Mattel experienced a sudden and sharp drop in demand during October and November 2022. 

The decline can primarily be attributed to inflationary stress, supply chain difficulties, and disruptions due to COVID-19. These disruptions included temporary business shutdowns, decreased retail foot traffic, and local restrictions. In the third quarter of 2022, the company’s sales in China took a hit due to retail shutdowns linked to COVID-19. This downturn led to increased clearance sales to alleviate excess inventory, which, unfortunately, further eroded profit margins. 

In response, Mattel initiated cost-cutting measures, including downsizing its global workforce to save an additional $50 million this year. This saving is over and above its initial cost reduction target of about $250 million [10]

New releases

Barbie is back this summer with its iconic Barbie movie starring Margot Robbie, which just dropped on the 20 July, which could jolt the iconic doll’s sales out of a year-long slump. Warner Bros shared that the live-action movie raked in $155 million in the United States and Canada over the weekend, on the 22 and 23 July, making it the biggest opening at the box office for 2023 [11].

Mattel has also partnered with over 100 brands and retailers on collaborations spanning fashion, beauty, homewares and more. The move is a way to keep the brand front and centre while also growing the reach of the Barbie brand beyond the core consumer audience for its fashion dolls [12]

Barbie collections have been popping up in retail stores, including Zara (ITX.MC), H&M (HMb.ST) and Gap, among the many brands rolling out pink garments and accessories. The vast array of merchandise – from Barbie rugs to Barbie toothbrushes – raises the possibilities of the brand becoming overstretched, but an increased focus on diversity and inclusivity from Mattel, retail partners and the film itself may provide sufficient freshness to keep people interested [13].

Retailers worldwide have also pitched in, with brands from Zara ITX.MC) to H&M and Fossil rolling out themed merchandise like Barbie purses, perfumes and toothbrushes. Mattel expects the Barbie movie to boost global sales of Barbie dolls, which declined last year from record growth during the pandemic [14].  

 Mattel stock

Why trade Mattel stocks 

1. Revenue trends [15]

In 2022, Mattel experienced a substantial growth in sales, registering an increase of over 20% compared to 2019.  

The toy industry is expected to grow at an annual rate of about 6% over the long term. Positioned to capitalise on this trend, Mattel enters 2023 with an expanded range of toys designed to fuel further growth. This expansion includes the successful relaunch of popular brands such as Monster High Barbie, Polly Pocket, and Masters of the Universe.

Moreover, as key growth drivers, Mattel has strengthened its partnerships with industry heavyweights such as Disney, Paramount, Universal, Warner Bros. Discovery, Microsoft, and Nintendo. In a significant development, Mattel inked a multiyear agreement to produce toys for Disney Wish’s franchise. The first products under this partnership are set to launch later this year, further consolidating Mattel’s previous licensing achievements with popular Disney franchises such as Disney Princess and Frozen. 

2. Higher profit margin  

In conjunction with growing sales, Mattel benefits from a leaner cost structure, contributing to an enhanced profit margin. It’s noteworthy that stocks tend to follow earnings over time, and Mattel’s improving margins are facilitating faster growth – a significant growth catalyst. 

Mattel is collaborating with Microsoft to design new Hot Wheels cars using the tech giant’s Azure OpenAI service, which is speeding up the process and likely saving the company money. These efforts indicate that Mattel’s profit margins may rise even higher as the AI revolution continues [16].

3. Barbie makes a comeback 

While sales are expected to be flat this 2023, Mattel is venturing into the film and television sector with its most popular toy brands. This new direction could potentially stimulate higher sales growth as the company strategically aligns these releases with its consumer business. This could propel sales growth beyond the industry average. 

Barbie, one of the most valuable brands in the toy industry, is reemerging in the spotlight. Netflix released two animated Barbie films last year, with additional projects in the pipeline. Furthermore, adding to the buzz, the live-action Barbie film released by Warner Bros has hit the theatres on 20 July 2023 and has since hit a record-setting $155 million [17].

Analysts anticipate annualised earnings growth of 11% for Mattel over the next five years. This earnings growth, along with a potentially higher P/E closer to the S&P 500 average of 22, should result in market-beating returns over the next five years [18 19].

Mattel Inc

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References

  1. “Greta Gerwig makes history as Barbie has biggest opening weekend for film directed by a woman – The Guardian” https://www.theguardian.com/film/2023/jul/24/barbie-movie-box-office-greta-gerwig-records-highest-grossing-woman Accessed 5 July 2023
  2. “Mattel – Companies History.com”  https://www.companieshistory.com/mattel/ Accessed 5 July 2023
  3. “Mattel History – Zippia” https://www.zippia.com/mattel-careers-7181/history/ Accessed 7 July 2023
  4. “History – Mattel Inc” https://corporate.mattel.com/history Accessed 7 July 2023
  5. “Mattel, Inc. – Company Profile, Information, Business Description, History, Background Information on Mattel, Inc. – Reference for Business” https://www.referenceforbusiness.com/history2/17/Mattel-Inc.html Accessed 7 July 2023
  6. “Mattel Inc – Google Finance” https://www.google.com/finance/quote/MAT:NASDAQ?sa=X&ved=2ahUKEwiWsa_i-dj_AhVRXGwGHSFSCPwQ3ecFegQIYRAh Accessed 7 July 2023
  7. “Mattel Inc – Yahoo Finance” https://finance.yahoo.com/quote/MAT/history?period1=1672531200&period2=1687824000&interval=1mo&filter=history&frequency=1mo&includeAdjustedClose=true Accessed 7 July 2023
  8. “Mattel Inc History – FundingUniverse”  http://www.fundinguniverse.com/company-histories/mattel-inc-history/ Accessed 7 July 2023
  9. “Mattel, Inc. Common Stock – Nasdaq” https://www.nasdaq.com/market-activity/stocks/mat Accessed 7 July 2023
  10. “Mattel Inc – IND Money” https://www.indmoney.com/us-stocks/dividends/mat-mattel-inc-dividend Accessed 7 July 2023
  11. “Toymaker Mattel suspends quarterly dividend – Reuters” https://www.reuters.com/article/mattel-results-idUSL4N1N162D Accessed 7 July 2023
  12. “Box Office: ‘Barbie’ Opens to Record-Setting $155 Million, ‘Oppenheimer’ Shatters Expectations With $80 Million Debut – Variety” https://variety.com/2023/film/box-office/box-office-barbie-oppenheimer-opening-weekend-shatter-records-1235677601/ Accessed 7 July 2023
  13. “Breaking Down the Barbie Phenomenon, From Mattel to Chanel – BOF” https://www.businessoffashion.com/articles/retail/breaking-down-the-barbie-phenomenon-from-mattel-to-chanel/ Accessed 7 July 2023
  14. “Global retailers cash in on Barbie movie craze  – Reuters” https://www.reuters.com/business/retail-consumer/global-retailers-cash-barbie-movie-craze-2023-07-21/ Accessed 7 July 2023
  15. “Mattel expects 2023 profit below estimates as inflation dampens demand – Reuters” https://www.reuters.com/business/retail-consumer/mattel-forecasts-2023-profit-below-expectations-inflation-hits-demand-2023-02-08/ Accessed 7 July 2023
  16. “Barbenheimer’ frenzy gives sluggish summer box office a major boost – Reuters” https://www.reuters.com/lifestyle/barbie-movie-sets-record-biggest-domestic-debut-2023-2023-07-23/ Accessed 7 July 2023
  17. “Stock split history for Mattel (MAT) – Companies Marketcap” https://companiesmarketcap.com/mattel/stock-splits/#:~:text=Mattel%20stock%20(symbol%3A%20MAT),to%203.662109375%20MAT%20shares%20today Accessed 7 July 2023
  18. “Global retailers cash in on Barbie movie craze – Reuters” https://www.reuters.com/business/retail-consumer/global-retailers-cash-barbie-movie-craze-2023-07-21/ Accessed 7 July 2023
  19. “Here’s Why Investors Should Hold On to Mattel (MAT) Stock Now – Yahoo Finance” https://finance.yahoo.com/news/heres-why-investors-hold-mattel-135401990.html Accessed 7 July 2023
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