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Mattel Inc. Stock Analysis

Mattel Inc. Stock Analysis . “creating the future of play”. By Kevin Johnson, Michael Brown, Jasen Laney, Annick Bendjo. About Mattel. Started in 1945 in Southern California by Elliot Handler and Harold “Matt” Matson One of the leading toy manufacturers in the world

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Mattel Inc. Stock Analysis

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  1. Mattel Inc. Stock Analysis “creating the future of play” By Kevin Johnson, Michael Brown, Jasen Laney, AnnickBendjo

  2. About Mattel • Started in 1945 in Southern California by Elliot Handler and Harold “Matt” Matson • One of the leading toy manufacturers in the world • Brands such as Fisher Price, Hot Wheels, Barbie • Barbie debuted in 1959 • Hot Wheels debuted in 1968 • Current CEO: Robert A. Eckert

  3. Recommendation Recommended to buy because: • Long term investment • Continuous growth • Market share leadership • Positive feedback from analysts • Positive SWOT analysis • Limited business issues

  4. FINANCIAL ANALYSIST Kevin Johnson johsonKevin380@gmail.com

  5. Net Income • Have not been in the red since 2000 • Have made at least $230 million since 2001 • Made $684.9 million in 2010 (highest in the last ten years) (Mattel 2010 Annual Report)

  6. Quick Ratio • 2008- 1.5 • 2009- 2.07 • 2010- 2.04

  7. Stock Price & EPS (Mattel, 2011) Stock price intra day?

  8. Mattel vs. Hasbro • Mattel is a larger company • Both have had similar success • Hasbro has a higher EPS for last 4 years

  9. THE CURRENT COMPETITIVE AND INDUSTRY CLIMATE Jasen Laney Jlaney1@students.towson.edu

  10. Competitive Climate • Court Case with MGA Entertainment over rights to the “Bratz” toy line(*Mattel pays $309m) • Hasbro • Video game industry (LexisNexis 2011)

  11. Industry Climate Some Industry climate factors are • Rising distribution costs • Unpredictable market environment • Manufacturing costs (Business Source 2011)

  12. SWOT ANALYSIS (Standard and Poor’s 2011)

  13. Mattel Inc. vs. Competitors (Yahoo Finance 2011)

  14. Current business issues Michael Brown Mbrown62@students.towson.edu

  15. Packaging Supplies • Sourced packaging supplies produced from Asia Pulp & Paper • Clean-cut swaths of Indonesian rainforests • Threatened species native to rainforests (Greenpeace)

  16. Greenpeace Campaign (Sustainable Manufacturing World)

  17. Resolution • Ordered packaging suppliers to stop buying from Asia Pulp & Paper • Announced sustainable sourcing principles • Safeguard against buying wood fibers from rainforests • Increase recycled paper • Boost use of Certified wood products (LA Times)

  18. Change of Leadership • Neil Friedman • Resigned from President of Mattel Brands March 2011 • Bryan Stockton • Appointed as Chief Operating Officer • Joined Mattel in 2000 • Became head of International Division in 2003 • Drove division revenue from 36% to 50% (Zacks)

  19. EXPERT ANALYSTS’ POINT OF VIEW AnnickBendjo abendj1@students.towson.edu

  20. Positive Analysis • Stock Evolution • Market Evolution • Issues Fixed • Growing Opportunities

  21. Positive Comments From Financial Analysts • Buy or Hold on • Follow stock evolution on the market.

  22. Stock safety graded with a 2 Consensus Recommendation Detailed Analyst Recommendation NASDAQ, Stock Research - Analyst Summary

  23. Why Is The Opinion Positive? • Movie related toys have increased Mattel’s revenue • Increase in: • Gross profit • Revenue • Sales volume • Annual dividend • Savings

  24. Stock Value Evolution

  25. The toy industry sector is doing well Toy Industry Association Inc.

  26. Possible Difficulties • Wal-Mart and Target’s low price requirements • Kid’s games’ evolution toward non-standards games. • Low dollar • Competition: • Radica ‘s lost before Sony's PlayStation3, Microsoft's Xbox 360 or Nintendo's Wii

  27. Low Construction Risk • Mattel’s construction facilities are located in countries where • Cheap labor • politically stable • Raw materials are available from numerous suppliers

  28. Positive Evolution • Good Expectations • International Opportunities • Positive Ranking • Moral Values • Current News

  29. Conclusion • Long term investment • Continuous growth • Market share leadership • Positive feedback from analysts • Positive SWOT analysis • Limited business issues

  30. Bibliography • Hasbro Inc. (2011). Retrieved October 1, 2011, from MSN Money:http://moneycentral.msn.com/investor/charts/chartdl.aspx?showchartbt=Redraw+chart&D4=1&DD=1&D5=0&DCS=2&MA0=0&MA1=0&C5=2&C5D=5&C6=2007&C7=3&C7D=2&C8=2007&C9=0&CF=0&symbol=HAS&nocookie=1&SZ=0&CP=0&PT=9 • Hasbro, I. (2011). 2010 Annual report. Retrieved October 1, 2011from Corporateinformation:http://www.shareholder.com/visitors/DynamicDoc/document.cfm?DocumentID=2935&CompanyID=HAS&zid=4d6301e3 • Mattel, I. (2011). Mattel subsidiaries 2006-2010. Retrieved October 1, 2011, from Financial History, Annual Reports, and Proxy Statements: http://investor.shareholder.com/mattel/financials.cfm • Mattel Inc. (2011). Retrieved October 1, 2011, from Yahoo Finance: http://finance.yahoo.com/q?s=MAT&ql=0 • McGraw-Hill Company. (2011, 10 3). Standard and Poor's. Retrieved 10 3, 2011, from Mattel, Inc: http://www.netadvantage.standardandpoors.com.proxy-tu.researchport.umd.edu/NASApp/NetAdvantage/cp/showHTMLStockReport.do?type=html • Sethi, S. P., Veral, E. A., Shapiro, H. J., & Emelianova, O. (2010). Mattel, Inc.: Global Manufacturing. Journal of Business Ethics , 36.

  31. Bibliography (Cont) • Gottlieb R., Are you selling internationally? Mattel, Jakks and Hasbro show why you should. July 27, 2011 http://www.globaltoynews.com/.services/blog/6a0133ec87bd6d970b0133ec87bd7e970b/search?filter.q=Mattel+Inc. • Mattel Inc., 2010 Annual report. http://files.shareholder.com/downloads/MAT/1408792418x0x455252/1587E36E-D23A-4783-8AC3-A3ADE3FE9A6F/2010_Mattel_Annual_Report_Bookmarked_.pdf • Mattel Inc., 2010 Annual report. http://investor.shareholder.com/mattel/releasedetail.cfm?ReleaseID=615012 • Seidman, O., Stock Screen: Income Stocks with Worthwhile Total Return Potential, September 26, 2011, retrieved October 21, 2011. http://www.valueline.com/Stocks/Screens_of_the_Week/Stock_Screen__Income_Stocks_with_Worthwhile_Total_Return_Potential_-_September_26,_2011.aspx • Souers, M. (2011,October 1). Stock Report. Standard & Poor's Stock Reports. Retrieved October 2, 2011, from Standard & Poor’s NetAdvantage database. http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/showStockReport.do • Van Kooten, M., Top 25 gaming companies 2010. 03 August 2010 http://www.softwaretop100.org/top-25-gaming-companies-2010 • Yahoo Finance http://finance.yahoo.com/q/hp?s=MAT&a=00&b=1&c=2011&d=09&e=22&f=2011&g=m • NASDAQ, Stock Research - Analyst Summary http://www.nasdaq.com/symbol/mat/analyst-research

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