StockStory Flags Mattel’s Slow Growth and Falling Returns
StockStory says Mattel’s five-year sales growth and free cash flow margin missed its benchmarks, while return on invested capital declined.
Key takeaways
- Mattel’s sales grew at a 1.2% annualized rate over five years, according to StockStory.
- Its average free cash flow margin was 8.9% over the last two years.
StockStory said Mattel’s revenue growth, cash generation and returns on invested capital fell short of its standards in an analysis published after the company’s Q2 earnings. The publisher said sales grew at a 1.2% annualized rate over five years.
Mattel’s average free cash flow margin was 8.9% over the past two years, which StockStory described as below its expectations for a consumer discretionary business. It also said the company’s return on invested capital had declined in recent years.
StockStory called the shares’ valuation reasonable at 11.4 times forward earnings, but said it saw too much downside risk given the company’s fundamentals. As of 17:03 UTC on Oct. 6, Mattel traded at $15.96, down 0.59% since the previous close.
This article was produced with the help of AI technology. Source: Yahoo Finance
