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Are Investors Undervaluing Mattel (MAT) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Mattel (MAT - Free Report) . MAT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.86, which compares to its industry's average of 23.53. Over the past year, MAT's Forward P/E has been as high as 15.09 and as low as 10.98, with a median of 12.99.
We also note that MAT holds a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MAT's PEG compares to its industry's average PEG of 1.09. Over the last 12 months, MAT's PEG has been as high as 1.59 and as low as 0.91, with a median of 1.20.
We should also highlight that MAT has a P/B ratio of 2.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.71. MAT's P/B has been as high as 3.38 and as low as 2.59, with a median of 3.17, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MAT has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.62.
Finally, investors will want to recognize that MAT has a P/CF ratio of 8.28. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MAT's P/CF compares to its industry's average P/CF of 32.11. MAT's P/CF has been as high as 26.70 and as low as 7.29, with a median of 11.95, all within the past year.
These are just a handful of the figures considered in Mattel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MAT is an impressive value stock right now.
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Are Investors Undervaluing Mattel (MAT) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Mattel (MAT - Free Report) . MAT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.86, which compares to its industry's average of 23.53. Over the past year, MAT's Forward P/E has been as high as 15.09 and as low as 10.98, with a median of 12.99.
We also note that MAT holds a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MAT's PEG compares to its industry's average PEG of 1.09. Over the last 12 months, MAT's PEG has been as high as 1.59 and as low as 0.91, with a median of 1.20.
We should also highlight that MAT has a P/B ratio of 2.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.71. MAT's P/B has been as high as 3.38 and as low as 2.59, with a median of 3.17, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MAT has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.62.
Finally, investors will want to recognize that MAT has a P/CF ratio of 8.28. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MAT's P/CF compares to its industry's average P/CF of 32.11. MAT's P/CF has been as high as 26.70 and as low as 7.29, with a median of 11.95, all within the past year.
These are just a handful of the figures considered in Mattel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MAT is an impressive value stock right now.