Does Value Line rate this stock as a good long-term investment? State Yes or No? (Hint: Use Value Line Investment Survey for the company dated July 29, 2022).

Please provide a thorough explanation.

 

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MATTEL, INC. NDQ-MAT TIMELINESS 3 Raised 12/10/21 SAFETY 3 Raised 4/30/21 TECHNICAL 2 Lowered 7/8/22 BETA 1.20 (1.00 - Market) 18-Month Target Price Range Low-High Midpoint (% to Mid) $20-$48 $34 (60%) 2025-27 PROJECTIONS Price Gain High 60 (+180%) Low 40 Institutional Decisions Ann'l Total Return 29% (+85% 16% to Buy to Pfd Stock None Common Stock 352,493,840 shs. as of 4/20/22 High: 29.4 38.0 48.5 Low: 22.7 27.7 LEGENDS 15.0 x "Cash Flow" p sh ... Relative Price Strength Options: Yes Shaded area indicates recession ANNUAL RATES of change (per sh) Sales "Cash Flow" Earnings Dividends Book Value 2020 2021 2022 MARKET CAP: $7.6 billion (Mid Cap) CURRENT POSITION 2020 2021 3/31/22 (SMILL.) Cash Assets Receivables Inventory Other Current Assets Accts Payable Debt Due Other Current Liab. 3.5% 762.2 731.4 536.6 1033.9 1072.6 862.2 514.7 777.2 969.2 172.1 293.3 267.7 2482.9 2874.5 2635.7 495.4 579.2 478.6 1.0 250.0 859.0 1019.1 816.1 1355.4 1598.3 1544.7 Past Past Est'd '19-21 10 Yrs. 5 Yrs. to 25-127 -2.0% -4.0% 4.5% -8.0% -12.0% 39.5% -14.0% -19.0% NMF NMF -10.0% -20.0% 28.5% QUARTERLY SALES ($ mill.) Full endar Mar.31 Jun.30 Sep.30 Dec.31 Year 689.2 860.1 1481.6 1473.7 4504.6 732.1 1631.7 1625.8 4583.7 2021 874.2 1026.4 1762.3 1794.8 5457.7 Cal- 2019 2020 594.1 2022 1041.3 1100 1875 1883.7 5900 2023 1100 1250 2025 2075 6450 Cal- EARNINGS PER SHARE A Full endar Mar.31 Jun.30 Sep.30 Dec.31 Year 2019 d.51 d.31 .20 d.62 some 2020 d.55 d.26 .95 2021 d.10 03 2022 .08 .05 2023 .05 .15 1.00 .70 Cal- QUARTERLY DIVIDENDS PAID = B endar Mar.31 Jun.30 Sep.30 Dec.31 2018 84 82 55 1.50 2019 RECENT PRICE 21.58 RATIO 14.4(16) RELATIVE 0.94 DVD Median: 26.0 P/E 302021 402021 102022 131 158 191 146 Percent 45 shares traded 30 Hid's(000) 348483 348483 345404 15 minit 18.20 Sales per sh 1.88 1.41 2.45 "Cash Flow" per sh 1.90 Earnings per sh A .75 75 .75 83 41 55 33 39 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 14.70 16.52 16.51 15.01 16.78 18.61 18.76 19.11 17.82 16.79 15.94 14.20 13.06 12.99 13.16 15.56 16.70 2.14 1.54 1.93 2.44 2.76 3.03 3.24 2.24 1.87 1.70 d.28 d.35 09 1.12 1.85 2.05 1.54 1.05 1.45 1.86 2.18 2.50 2.58 1.48 1.08 d1.08 d1.14 d.62 .54 1.30 1.50 92 1.24 1.44 1.52 1.52 1.52 ,91 .57 64 74 77 75 77 .86 44 34 6.33 6.38 5.91 6.99 7.53 7.75 8.96 9.58 8.72 7.75 7.03 3.66 1.94 1.42 384.30 361.40 358.50 361.90 349.10 336.70 342.30 339.30 338.10 339.70 342.40 343.80 345.30 346.80 13.1 15.9 17.5 11.2 12.1 12.1 13.5 16.7 24.3 23.3 34.0 71 .84 1.05 .75 77 86 .94 3.5% 3.1% 4.1% 4.6% 3.7% 3.7% 3.3% CAPITAL STRUCTURE as of 3/31/22 Total Debt $2572.2 mill. Due in 5 Yrs $850 mill. LT Debt $2322.2 mill. LT Interest $132.8 mill. (Total interest coverage:5.5x) (62% of Cap'l) Leases, Uncapitalized Annual rentals $92.3 mill. Pension Assets-12/21 $457.1 mill. Nil Div'ds Decl'd per sh B .60 Cap'l Spending per sh 7.85 Book Value per sh D Common Shs Outst'g C Avg Ann'l P/E Ratio Relative P/E Ratio .76 1.28 1.17 1.78 4.2% 6.0% 4.9% 4.4% Avg Ann'l Div'd Yield Oblig. $613.3 mill. 47.7 31.2 34.8 31.6 18.9 17.3 18.4 23.3 27.0 35.5 28.7 19.4 23.8 12.7 9.1 9.1 6.5 16.9 19.2 Full Year H4 .40 some pricing eing increases of 1.2% and ex- 54 pense savings of $17 million in the quarter 53 1.30 from a previously announced cost-cutting a result of the higher costs, 1.90 program. As management has implemented additional price hikes that will go into effect during the second half of the year. Still, we are now expecting margins to compress by more than a percentage point for the year, keeping a lid on further earnings growth. Action figures have been very strong, driven by ties to theatrical releases. ings report due mid-October. (B) Dividend $5.30/sh. suspended 9/17. (C) In millions. (D) Includes Intangibles '21: $1,867.1 mill.; Nil VALUE LINE 1.71 348.20 21.8 1.12 .. 4.4% 5456.7 4882.0 4510.9 4504.6 4583.7 5457.7 14.3% .9% 3.4% 6.3% 12.7% 17.4% 262.3 274.8 271.9 244.5 199.9 184.3 188.9 d370.1 d393.0 d213.5 464.4 3.5% 10.3% 4.1% 8.5% 1127.5 1276.2 9547 2854.7 2571.0 596.3 1568.8 0 40/ 6420.9 6484.9 6023.8 5702.6 20.8% 21.0% 15.4% 14.1% 174.3 196.4 248.7 265.4 863.6 903.9 508.4 369.4 318.0 20.3% 17.8% 22.6% 20.4% 22.4% 12 40/ 13.4% NME NIME NIME 13.9% 8.4% 6.5% 5.8% NMF NMF NMF 1840.8 2330.6 2097.0 1551.3 1434.5 1487.8 1099.8 971.1 100.0 1600.0 21000 1100.0 1600.0 2100.0 1800.0 2134.3 2873.1 2851.7 2846.8 3067.0 3251.6 2949.1 669.5 2633.3 2407.8 1257.5 491.7 21.8% 19.4% 10.9% 9.3% 8.0% NMF NMF NMF 28.2% 27.8% 17.2% 14.0% 13.2% NMF NMF NMF 14.4% 12.6% NMF NMF NMF NMF NMF NMF 49% 55% 101% NMF NMF NMF BUSINESS: Mattel, Inc. is one of the largest U.S. toy makers. Its portfolio of brands and products are classified as Power Brands (in- cludes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl) and Toy Box (includes new and innovative products as well as time-tested classics, from Mattel owned and licensed en- tertainment properties). In 2021, international: 41% of sales. Ad- We are maintaining our estimates for Mattel, despite a stronger-than- expected start to the year. Sales were up 22% in the first quarter on a constant- currency basis compared to our 11.5% tar- tory restocking affrowth came from inven- and in anticipation of entertainment tie- Abrams has get a boost season signed 43 .55 4.47 5.95 350.70 353.00 354.00 15.7 Bold figures are 85 Value Line estimates .. % TOT. RETURN 6/22 VL ARITH." INDEX -16.9 29.2 45.4 Target Price Range 2025 2026 2027 1 yr. 3 yr. 5 yr. 64 -48 40 -32 THIS STOCK 11.1 99.2 4.7 VALUE LINE PUB. LLC 25-27 -24 -20 -16 12 -8 6 22.40 3.15 2.50 Nil .70 14.60 359.00 19.5 1.10 Nil 6450 Sales (Smill) 18.0% Operating Margin 200 Depreciation (Smill) 675 Net Profit (Smill) 20.0% Income Tax Rate 10.5% Net Profit Margin 2450 2450 Working Cap'l (Smill) 2570 Long-Term Debt (Smill) 2775 Shr. Equity (Smill) 13.0% Return on Total Cap'l 12.0% 17.0% 5900 16.0% 185 530 17.0% 9.0% 1790 2570 2100 8.3% 14.3% 12.0% 31.7% 29.6% 25.0% 24.5% Return on Shr. Equity 31.7% 29.6% 25.0% 24.5% Retained to Com Eq 17.0% NMF Nil Nil All Div'ds to Net Prof Nil vertising: 10% of sales. Has about 32,100 employees. Officers & Directors own 1.8% of common stock; EdgePoint Investment Grp., 14.2%; PRIMECAP Management, 12.9%; Edgepoint Inv. 11.7; Vanguard Group, 9.1%; BlackRock, Inc., 8.3% (4/22 Proxy). CEO: Ynon Kreiz. Inc.: DE. Address: 333 Continental Blvd., El Segundo, CA 90245. Telephone: 310-252-2000. Internet: www.mattel.com. Jurasic World, Lightyear, and Masters of the Universe are all expected to sustain the strong growth in this category, which was up 41% on a year-over-year basis. Next year, a Barbie movie will be released on a worldwide basis. Even the Vehicle will as director J.J. category a Hot to 8050 18.0% 225 905 20.0% 11.2% 4800 2500 5250 ins later in the year. The strong sales helped leverage fixed costs and drove gain per share compared to our estimate for a loss of $0.05. Cost inflation increased 5.5% and pressured red margins, though. Higher costs for ocean freight, nous packaging, and some wage pressure droveously raising finished goods prices. Even the increased expenses. This was offset by inflationary to be pres- we expect earr earnings growth will likely moderate during the second half of the year. Longer term, as sures ease, we look for sales better reflected on on the bottom line. We like the strategy of leveraging movie releases for marketing to toy sales and sustain high-single digit top-line growth.. .A shift to to more digital products in the form of video games could help boost margins, as well. From the current quotation, 3- to 5-year capital appreciation potential looks attractive. Tom Mulle Wheels movie with Warner Brothers. Neutrally ranked Mattel shares have held up well despite the market sell- off. Management has been pro proactive on the cost reduction front while simulta- July 29, 2022 Company's Financial Strength Stock's Price Stability Price Growth Persistence Earnings Predictability (A) Diluted earnings; Excludes nonrecurring items: '06, 12; '12, (28c); '14, (5c); '17, ($1.99); 18, (40c); '20, (18c): 21 Q1, (23c); Q2, (5); Q3, $1.45; '22 Q1, (2c). Next earn- 2022 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable anders own, non-commercial, internal use. No part To subscribe call 1-800-VALUELINE THE ER IS publication is strictly for subscriber's of it may be reproduced resold stored or transmitted in any printed electronic or other form or used for generating or marketing any printed or electronic publication service or product B 25 10 15 MATTEL, INC. NDQ-MAT TIMELINESS 3 Raised 12/10/21 SAFETY 3 Raised 4/30/21 TECHNICAL 2 Lowered 7/8/22 BETA 1.20 (1.00 - Market) 18-Month Target Price Range Low-High Midpoint (% to Mid) $20-$48 $34 (60%) 2025-27 PROJECTIONS Price Gain High 60 (+180%) Low 40 Institutional Decisions Ann'l Total Return 29% (+85% 16% to Buy to Pfd Stock None Common Stock 352,493,840 shs. as of 4/20/22 High: 29.4 38.0 48.5 Low: 22.7 27.7 LEGENDS 15.0 x "Cash Flow" p sh ... Relative Price Strength Options: Yes Shaded area indicates recession ANNUAL RATES of change (per sh) Sales "Cash Flow" Earnings Dividends Book Value 2020 2021 2022 MARKET CAP: $7.6 billion (Mid Cap) CURRENT POSITION 2020 2021 3/31/22 (SMILL.) Cash Assets Receivables Inventory Other Current Assets Accts Payable Debt Due Other Current Liab. 3.5% 762.2 731.4 536.6 1033.9 1072.6 862.2 514.7 777.2 969.2 172.1 293.3 267.7 2482.9 2874.5 2635.7 495.4 579.2 478.6 1.0 250.0 859.0 1019.1 816.1 1355.4 1598.3 1544.7 Past Past Est'd '19-21 10 Yrs. 5 Yrs. to 25-127 -2.0% -4.0% 4.5% -8.0% -12.0% 39.5% -14.0% -19.0% NMF NMF -10.0% -20.0% 28.5% QUARTERLY SALES ($ mill.) Full endar Mar.31 Jun.30 Sep.30 Dec.31 Year 689.2 860.1 1481.6 1473.7 4504.6 732.1 1631.7 1625.8 4583.7 2021 874.2 1026.4 1762.3 1794.8 5457.7 Cal- 2019 2020 594.1 2022 1041.3 1100 1875 1883.7 5900 2023 1100 1250 2025 2075 6450 Cal- EARNINGS PER SHARE A Full endar Mar.31 Jun.30 Sep.30 Dec.31 Year 2019 d.51 d.31 .20 d.62 some 2020 d.55 d.26 .95 2021 d.10 03 2022 .08 .05 2023 .05 .15 1.00 .70 Cal- QUARTERLY DIVIDENDS PAID = B endar Mar.31 Jun.30 Sep.30 Dec.31 2018 84 82 55 1.50 2019 RECENT PRICE 21.58 RATIO 14.4(16) RELATIVE 0.94 DVD Median: 26.0 P/E 302021 402021 102022 131 158 191 146 Percent 45 shares traded 30 Hid's(000) 348483 348483 345404 15 minit 18.20 Sales per sh 1.88 1.41 2.45 "Cash Flow" per sh 1.90 Earnings per sh A .75 75 .75 83 41 55 33 39 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 14.70 16.52 16.51 15.01 16.78 18.61 18.76 19.11 17.82 16.79 15.94 14.20 13.06 12.99 13.16 15.56 16.70 2.14 1.54 1.93 2.44 2.76 3.03 3.24 2.24 1.87 1.70 d.28 d.35 09 1.12 1.85 2.05 1.54 1.05 1.45 1.86 2.18 2.50 2.58 1.48 1.08 d1.08 d1.14 d.62 .54 1.30 1.50 92 1.24 1.44 1.52 1.52 1.52 ,91 .57 64 74 77 75 77 .86 44 34 6.33 6.38 5.91 6.99 7.53 7.75 8.96 9.58 8.72 7.75 7.03 3.66 1.94 1.42 384.30 361.40 358.50 361.90 349.10 336.70 342.30 339.30 338.10 339.70 342.40 343.80 345.30 346.80 13.1 15.9 17.5 11.2 12.1 12.1 13.5 16.7 24.3 23.3 34.0 71 .84 1.05 .75 77 86 .94 3.5% 3.1% 4.1% 4.6% 3.7% 3.7% 3.3% CAPITAL STRUCTURE as of 3/31/22 Total Debt $2572.2 mill. Due in 5 Yrs $850 mill. LT Debt $2322.2 mill. LT Interest $132.8 mill. (Total interest coverage:5.5x) (62% of Cap'l) Leases, Uncapitalized Annual rentals $92.3 mill. Pension Assets-12/21 $457.1 mill. Nil Div'ds Decl'd per sh B .60 Cap'l Spending per sh 7.85 Book Value per sh D Common Shs Outst'g C Avg Ann'l P/E Ratio Relative P/E Ratio .76 1.28 1.17 1.78 4.2% 6.0% 4.9% 4.4% Avg Ann'l Div'd Yield Oblig. $613.3 mill. 47.7 31.2 34.8 31.6 18.9 17.3 18.4 23.3 27.0 35.5 28.7 19.4 23.8 12.7 9.1 9.1 6.5 16.9 19.2 Full Year H4 .40 some pricing eing increases of 1.2% and ex- 54 pense savings of $17 million in the quarter 53 1.30 from a previously announced cost-cutting a result of the higher costs, 1.90 program. As management has implemented additional price hikes that will go into effect during the second half of the year. Still, we are now expecting margins to compress by more than a percentage point for the year, keeping a lid on further earnings growth. Action figures have been very strong, driven by ties to theatrical releases. ings report due mid-October. (B) Dividend $5.30/sh. suspended 9/17. (C) In millions. (D) Includes Intangibles '21: $1,867.1 mill.; Nil VALUE LINE 1.71 348.20 21.8 1.12 .. 4.4% 5456.7 4882.0 4510.9 4504.6 4583.7 5457.7 14.3% .9% 3.4% 6.3% 12.7% 17.4% 262.3 274.8 271.9 244.5 199.9 184.3 188.9 d370.1 d393.0 d213.5 464.4 3.5% 10.3% 4.1% 8.5% 1127.5 1276.2 9547 2854.7 2571.0 596.3 1568.8 0 40/ 6420.9 6484.9 6023.8 5702.6 20.8% 21.0% 15.4% 14.1% 174.3 196.4 248.7 265.4 863.6 903.9 508.4 369.4 318.0 20.3% 17.8% 22.6% 20.4% 22.4% 12 40/ 13.4% NME NIME NIME 13.9% 8.4% 6.5% 5.8% NMF NMF NMF 1840.8 2330.6 2097.0 1551.3 1434.5 1487.8 1099.8 971.1 100.0 1600.0 21000 1100.0 1600.0 2100.0 1800.0 2134.3 2873.1 2851.7 2846.8 3067.0 3251.6 2949.1 669.5 2633.3 2407.8 1257.5 491.7 21.8% 19.4% 10.9% 9.3% 8.0% NMF NMF NMF 28.2% 27.8% 17.2% 14.0% 13.2% NMF NMF NMF 14.4% 12.6% NMF NMF NMF NMF NMF NMF 49% 55% 101% NMF NMF NMF BUSINESS: Mattel, Inc. is one of the largest U.S. toy makers. Its portfolio of brands and products are classified as Power Brands (in- cludes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl) and Toy Box (includes new and innovative products as well as time-tested classics, from Mattel owned and licensed en- tertainment properties). In 2021, international: 41% of sales. Ad- We are maintaining our estimates for Mattel, despite a stronger-than- expected start to the year. Sales were up 22% in the first quarter on a constant- currency basis compared to our 11.5% tar- tory restocking affrowth came from inven- and in anticipation of entertainment tie- Abrams has get a boost season signed 43 .55 4.47 5.95 350.70 353.00 354.00 15.7 Bold figures are 85 Value Line estimates .. % TOT. RETURN 6/22 VL ARITH." INDEX -16.9 29.2 45.4 Target Price Range 2025 2026 2027 1 yr. 3 yr. 5 yr. 64 -48 40 -32 THIS STOCK 11.1 99.2 4.7 VALUE LINE PUB. LLC 25-27 -24 -20 -16 12 -8 6 22.40 3.15 2.50 Nil .70 14.60 359.00 19.5 1.10 Nil 6450 Sales (Smill) 18.0% Operating Margin 200 Depreciation (Smill) 675 Net Profit (Smill) 20.0% Income Tax Rate 10.5% Net Profit Margin 2450 2450 Working Cap'l (Smill) 2570 Long-Term Debt (Smill) 2775 Shr. Equity (Smill) 13.0% Return on Total Cap'l 12.0% 17.0% 5900 16.0% 185 530 17.0% 9.0% 1790 2570 2100 8.3% 14.3% 12.0% 31.7% 29.6% 25.0% 24.5% Return on Shr. Equity 31.7% 29.6% 25.0% 24.5% Retained to Com Eq 17.0% NMF Nil Nil All Div'ds to Net Prof Nil vertising: 10% of sales. Has about 32,100 employees. Officers & Directors own 1.8% of common stock; EdgePoint Investment Grp., 14.2%; PRIMECAP Management, 12.9%; Edgepoint Inv. 11.7; Vanguard Group, 9.1%; BlackRock, Inc., 8.3% (4/22 Proxy). CEO: Ynon Kreiz. Inc.: DE. Address: 333 Continental Blvd., El Segundo, CA 90245. Telephone: 310-252-2000. Internet: www.mattel.com. Jurasic World, Lightyear, and Masters of the Universe are all expected to sustain the strong growth in this category, which was up 41% on a year-over-year basis. Next year, a Barbie movie will be released on a worldwide basis. Even the Vehicle will as director J.J. category a Hot to 8050 18.0% 225 905 20.0% 11.2% 4800 2500 5250 ins later in the year. The strong sales helped leverage fixed costs and drove gain per share compared to our estimate for a loss of $0.05. Cost inflation increased 5.5% and pressured red margins, though. Higher costs for ocean freight, nous packaging, and some wage pressure droveously raising finished goods prices. Even the increased expenses. This was offset by inflationary to be pres- we expect earr earnings growth will likely moderate during the second half of the year. Longer term, as sures ease, we look for sales better reflected on on the bottom line. We like the strategy of leveraging movie releases for marketing to toy sales and sustain high-single digit top-line growth.. .A shift to to more digital products in the form of video games could help boost margins, as well. From the current quotation, 3- to 5-year capital appreciation potential looks attractive. Tom Mulle Wheels movie with Warner Brothers. Neutrally ranked Mattel shares have held up well despite the market sell- off. Management has been pro proactive on the cost reduction front while simulta- July 29, 2022 Company's Financial Strength Stock's Price Stability Price Growth Persistence Earnings Predictability (A) Diluted earnings; Excludes nonrecurring items: '06, 12; '12, (28c); '14, (5c); '17, ($1.99); 18, (40c); '20, (18c): 21 Q1, (23c); Q2, (5); Q3, $1.45; '22 Q1, (2c). Next earn- 2022 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable anders own, non-commercial, internal use. No part To subscribe call 1-800-VALUELINE THE ER IS publication is strictly for subscriber's of it may be reproduced resold stored or transmitted in any printed electronic or other form or used for generating or marketing any printed or electronic publication service or product B 25 10 15

Answer rating: 100% (QA)

Based on the information provided in the Value Line Investment Survey for Mattel Inc dated July 29 2... View the full answer