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.