Morningstar Rating

Stock Research and Analysis

by Jaime M. Katz, CFA

Bulls Say

Mattel's size allows it to fund new products, expand into high-growth emerging markets, and make acquisitions, while its large portfolio of brands lends itself to scalable expansion in new categories like digital and in new franchises.
As one of the largest players in the toy industry, Mattel remains one of the preferred licensing partners for important tie-ins with entertainment companies in movies and television.
Mattel's capital-allocation program could be compelling for income investors. The company has returned $2 billion to shareholders in dividends over the past five years. Read more 

Bears Say

The target market for traditional toy manufacturers continues to shrink as a percentage of total toy sales, as technology plays a more predominant role in product selection.
Bumps in the implementation of the new leadership's corporate vision could prevent Mattel from reaching its full earnings potential, at least through 2015.
Mattel's inability to capture lucrative entertainment and licensing contracts could cause competitors to become relatively more attractive. The loss of the Disney Princess contract brings into question the ability to maintain important licensing agreements. Read more 

Management

Leadership at Mattel continues to evolve. Christopher Sinclair, who previously held a spot on the board of directors, has replaced former CEO Bryan Stockton, who departed in January 2015. Additionally, industry veterans Tim Kilpin and Richard Dickson   Read more 

Profile

Mattel manufactures and markets toy products that are sold to its wholesale customers and directly to retail consumers. The company offers products for children and families,  Read more 

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