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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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Mattel (MAT - Free Report) . MAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.53 right now. For comparison, its industry sports an average P/E of 21.96. MAT's Forward P/E has been as high as 14.50 and as low as 10.98, with a median of 12.67, all within the past year.
We also note that MAT holds a PEG ratio of 0.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MAT's PEG compares to its industry's average PEG of 1.02. Within the past year, MAT's PEG has been as high as 1.50 and as low as 0.83, with a median of 1.16.
Investors should also recognize that MAT has a P/B ratio of 2.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.49. Within the past 52 weeks, MAT's P/B has been as high as 3.38 and as low as 2.58, with a median of 3.02.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MAT has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.5.
Finally, our model also underscores that MAT has a P/CF ratio of 7.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.76. Within the past 12 months, MAT's P/CF has been as high as 16.16 and as low as 7.25, with a median of 11.19.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Mattel (MAT - Free Report) . MAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.53 right now. For comparison, its industry sports an average P/E of 21.96. MAT's Forward P/E has been as high as 14.50 and as low as 10.98, with a median of 12.67, all within the past year.
We also note that MAT holds a PEG ratio of 0.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MAT's PEG compares to its industry's average PEG of 1.02. Within the past year, MAT's PEG has been as high as 1.50 and as low as 0.83, with a median of 1.16.
Investors should also recognize that MAT has a P/B ratio of 2.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.49. Within the past 52 weeks, MAT's P/B has been as high as 3.38 and as low as 2.58, with a median of 3.02.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MAT has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.5.
Finally, our model also underscores that MAT has a P/CF ratio of 7.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.76. Within the past 12 months, MAT's P/CF has been as high as 16.16 and as low as 7.25, with a median of 11.19.
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.