Thread regarding Mattel Inc. layoffs

Mattel at a glance from capitalcube.com

With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.

Mattel, Inc. currently trades at a higher Price/Book ratio (4.24) than its peer median (2.92).

The market expects MAT-US to grow faster than its peers and for the company to improve its current ROE.

MAT-US has relatively low profit margins and median asset efficiency.

Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.

Over the last five years, MAT-US‘s return on assets has declined from above median to about median among its peers, indicating declining relative operating performance.

The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.

While MAT-US‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.

The company’s capital investment seems appropriate for a business with peer median returns.

MAT-US has the financial and operating capacity to borrow quickly.

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| 1632 views | | 3 replies (last December 9, 2016) | Reply
Post ID: @OP+KIbA8Ms

3 replies (most recent on top)

Time to move on! In the EOS results, 52% said they were actively seeking new employment, if they did the survey again tomorrow it would likely be more like 65 to 70% ready to move on. Never have I seen a more demoralized, toxic work environment. Good luck to everyone and look out for #1.

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Post ID: @3kfi+KIbA8Ms

Hopefully something will happen before any more jobs are sent to that cluster called Genpact

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Post ID: @2ewx+KIbA8Ms

Whoever posted this is aligned with the Mattel-friendly analysts who are being coerced by the company to write a favorable review. However, the numbers mentioned don't lie, but here's what they really mean:

1) Mattel has been promising a turnaround for 2 years, so the street has "hope" that the stock price will rise along with revenue

2) Mattel spends a lot of money on Barbie - plain and simple - because the fate of the company is forever tied to the fate of this brand - Mattel overspends in advertising and marketing to prop her up beyond her means

3) Management salaries are out of line with other competitors vs. the results of their work - a new management team is inevitable

4) Due to all this spending, Finance is forced to drive unreasonable requests on all the other brands and functions resulting in overpricing and low innovation

The only alternative is for Mattel to either be purchased by someone who'll take them private or stop paying the dividend (which will result in someone buying them and taking them private). It's going to happened in 2017, because licensed properties like SuperHero Girls, Cars and Toy Story are margin dilutive and just make the bottom line worse, even while revenues go up.

Grab your popcorn - 2017 is going to be an epic and volatile year :)

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Post ID: @2nlw+KIbA8Ms

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