Yesterday’s Consumer Pops and Drops: OSK, COTY, HLF, and MNST
Price movement of Mattel
Mattel (MAT), which has a market cap of $9.1 billion, fell by 3.0% to close at $26.76 per share on February 1, 2016. The company’s weekly, monthly, and YTD (year-to-date) stock price movements came in at 0.07%, -2.5%, and -1.5%, respectively.
At times, the stock has broken the support of all moving day averages. Currently, MAT is trading 0.54% above its 20-day moving average, 2.6% above its 50-day moving average, and 9.5% above its 200-day moving average.
The ALPS Sector Dividend Dogs ETF (SDOG) invests 2.2% of its holdings in Mattel. The ETF tracks an equal-weighted index of the five highest-yielding S&P 500 securities in each sector. The YTD price movement of SDOG is -4.2% as of January 29, 2016.
By comparison, the WisdomTree Dividend Ex-Financials ETF (DTN) invests 2.0% of its holdings in Mattel. The ETF tracks an index selected and weighted by dividends that exclude financial firms.
Let’s look at the market caps of a few of Mattel’s biggest competitors:
Walt Disney Company (DIS)—$156.2 billion
Hasbro (HAS)—$9.2 billion
Mattel’s performance in fiscal 4Q15 and fiscal 2015
Mattel reported 4Q15 net sales of $1.999 billion, a rise of 0.29% over the net sales of $1.994 billion we saw in fiscal 4Q14. Sales of Mattel’s Girls & Boys and American Girl brands fell by 7.5% and 14.1%, respectively, while sales of Fisher-Price brands and construction and arts and crafts brands rose by 8.2% and 0.15%, respectively, in fiscal 4Q15 over fiscal 4Q14.
Matte’s net income and EPS (earnings per share) rose to $215.2 million and $0.63, respectively, in fiscal 4Q15, compared to $149.9 million and $0.44, respectively, in fiscal 4Q14. The company has declared a quarterly cash dividend of $0.38 per share on its common stock.
Fiscal 2015 results
In fiscal 2015, Mattel reported net sales of $5.7 billion, down by 5.3% YoY (year-over-year). The company’s cost of sales as a percentage of sales rose by 1.2%, and its operating income fell by 17.3% in fiscal 2015. Its net income and EPS fell to $369.4 million and $1.08, respectively, in fiscal 2015, compared to $498.9 million and $1.45, respectively, in fiscal 2014.
Meanwhile, Mattel’s cash and cash equivalents fell by 8.1%, and its inventories rose by 4.6% in fiscal 2015. The company’s current ratio and long-term debt-to-equity ratio fell to 1.9 and 0.68, respectively, in fiscal 2015, compared to 2.9 and 0.71, respectively, we saw in fiscal 2014.
PE and PBV ratios, Disney
The PE (price-to-earnings) and PBV (price-to-book value) ratios of Mattel were 30.4x and 3.5x, respectively, as of February 1, 2016.
In related news, on January 27, 2016, Mattel renewed its relationship with Disney Consumer Products and its Cars franchise, particularly with regard to the Disney Pixar film Cars 3. This will mean that Mattel can continue to manufacture, market, and distribute toys and products based on the award-winning franchise across multiple categories, including vehicles and playsets.
Now let’s take a look at Coty as of February 1.
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