Recent News
Oct. 15–16, 2025: Roblox announced an expanded partnership with Mattel to develop new branded games and virtual experiences featuring Barbie, Hot Wheels and Masters of the Universe. Oct. 13, 2025: Mattel Studios confirmed development of a live-action Magic 8 Ball series with M. Night Shyamalan attached as director. Sep. 20–Oct. 4, 2025: The Hot Wheels Legends Tour held multiple events, including U.S. stops and Hot Wheels headquarters activations. Sep.–Oct. 2025: Mattel published product and brand updates including new collector builds, an American Girl announcement, and Fisher-Price Montessori product launches.
Technical Analysis
Directional indicators show an emerging trend: ADX at 24.92 signals rising trend strength. DI+ sits at 28.14 and the DI+ trend reads increasing, supplying bullish directional pressure; DI– at 20.26 shows a dip-and-reversal, reintroducing bearish pressure that could cap sustained directional moves unless DI+ maintains strength.
MACD sits negative at –0.02 but trades above its signal line (MACD signal –0.08), which constitutes a short-term bullish crossover; simultaneously the MACD trend shows a peak-and-reversal, indicating momentum has recently weakened and limiting follow-through from the crossover.
MRO at –19.6 implies the price trades below the oscillator target and, by that measure, presents potential upward pressure; the MRO trend shows a peak-and-reversal, pointing to diminishing downside momentum rather than a fresh acceleration higher.
RSI at 48.29 with a peak-and-reversal suggests relative-strength pressure faded from recent highs and reduces immediate overbought risk while denying conviction for a strong breakout.
Price sits at $17.86, above the 20-day average $17.56 and 50-day average $17.76 but below the 200-day average $18.54, which frames near-term support around short-term moving averages and longer-term resistance near the 200-day average and the ichimoku cloud bounds (SenkouA $18.07, SenkouB $18.66). Volume running below 10- and 50-day averages signals lower participation on recent moves; 42-day beta 1.53 versus 52-week beta 1.08 points to elevated short-term volatility.
Fundamental Analysis
Revenue and profitability: Total revenue $1,018,562,000. Reported revenue growth reads 23.22%; YoY revenue growth reads –30.44%; quarter-over-quarter revenue change reads –146.63%. Gross margin equals 50.95%, slightly below the industry peer mean of 56.53% and median of 58.80%. Operating margin 7.71% and EBIT margin 9.06% trail the industry peer mean EBIT margin of 20.75% and median of 26.03%, though EBIT margin shows a YoY improvement of 9.30% while quarter-over-quarter moved by –249.58%.
Earnings and forward metrics: EPS actual $0.19 beat the estimate $0.16 by $0.03, an EPS surprise of 18.75%. Trailing P/E sits at 100.83 and forward P/E at 46.95, indicating a premium on forward earnings expectations. Price/book at 2.73 rests below the industry peer mean of 4.49 and median of 5.05. Price/sales 5.83 compares modestly below the industry peer mean of 6.61.
Cash flow and liquidity: Operating cash flow –$300,082,000 and free cash flow –$339,907,000 produce a free-cash-flow yield of –5.73%; free-cash-flow yield improved QoQ by 27.77% but remains negative. Cash and short-term investments total $870,452,000 while net debt equals $1,466,081,000. Current ratio 1.62 and quick ratio 1.12 have declined QoQ; the cash conversion cycle at 149.8 days improves versus the industry peer mean of 184.6 days and median of 229.5 days, reflecting relatively tighter working-capital dynamics.
Leverage and coverage: Total debt $2,681,654,000 yields debt-to-assets 42.91% and debt-to-equity 1.23, both above the industry peer mean levels. Debt-to-EBITDA registers 17.58 and interest coverage 3.14, the latter below the industry peer mean of 6.65, indicating tighter coverage on interest obligations versus peers.
Valuation summary: WMDST values the stock as over-valued. The valuation drivers include a high trailing P/E and enterprise multiple (enterprise multiple 50.78) combined with negative free cash flow and elevated leverage, offset partially by brand-driven revenue initiatives and an EPS beat. These factors justify the WMDST over-valued classification relative to the company’s cash-flow and leverage profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-23 |
| NEXT REPORT DATE: | 2025-11-03 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ -300.08 M | |
| Capital Expenditures | $ -39.83 M | |
| Change In Working Capital | $ -426.92 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -373.24 M | |
| End Period Cash Flow | $ 870.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.0 B | |
| Forward Revenue | $ 611.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 499.6 M | |
| Depreciation | $ 34.7 M | |
| Depreciation and Amortization | $ 60.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 940.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 519.0 M | |
| EBITDA | $ 152.6 M | |
| EBIT | $ 92.3 M | |
| Operating Income | $ 78.5 M | |
| Interest Income | $ 12.4 M | |
| Interest Expense | $ 29.4 M | |
| Net Interest Income | $ -16.99 M | |
| Income Before Tax | $ 62.9 M | |
| Tax Provision | $ 16.2 M | |
| Tax Rate | 25.762 % | |
| Net Income | $ 53.4 M | |
| Net Income From Continuing Operations | $ 53.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.16 | |
| EPS Actual | $ 0.19 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 18.75 % | |
| Forward EPS | $ 0.40 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.2 B | |
| Intangible Assets | $ 1.7 B | |
| Net Tangible Assets | $ 425.5 M | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 870.5 M | |
| Cash | $ 870.5 M | |
| Net Receivables | $ 792.5 M | |
| Inventory | $ 867.9 M | |
| Long-Term Investments | $ 555.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 419.5 M | |
| Short-Term Debt | $ 598.9 M | |
| Total Current Liabilities | $ 1.7 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 2.7 B | |
| Total Liabilities | $ 4.1 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ 3.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.73 | |
| Shares Outstanding | 322.269 M | |
| Revenue Per-Share | $ 3.15 | |
| VALUATION | Market Capitalization | $ 5.9 B |
| Enterprise Value | $ 7.7 B | |
| Enterprise Multiple | 50.777 | |
| Enterprise Multiple QoQ | -92.728 % | |
| Enterprise Multiple YoY | 51.76 % | |
| Enterprise Multiple IPRWA | high: 74.241 median: 74.241 MAT: 50.777 mean: 50.726 low: -23.742 |
|
| EV/R | 7.606 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.877 | |
| Asset To Liability | 1.533 | |
| Debt To Capital | 0.553 | |
| Debt To Assets | 0.429 | |
| Debt To Assets QoQ | -0.628 % | |
| Debt To Assets YoY | 3242.212 % | |
| Debt To Assets IPRWA | high: 0.93 MAT: 0.429 mean: 0.214 low: 0.014 median: 0.014 |
|
| Debt To Equity | 1.235 | |
| Debt To Equity QoQ | -1.895 % | |
| Debt To Equity YoY | 3112.097 % | |
| Debt To Equity IPRWA | high: 1.828 MAT: 1.235 mean: 0.258 low: 0.018 median: 0.018 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.733 | |
| Price To Book QoQ | 1.654 % | |
| Price To Book YoY | -9.059 % | |
| Price To Book IPRWA | high: 5.613 median: 5.046 mean: 4.494 MAT: 2.733 low: 0.601 |
|
| Price To Earnings (P/E) | 100.83 | |
| Price To Earnings QoQ | -117.059 % | |
| Price To Earnings YoY | 9.803 % | |
| Price To Earnings IPRWA | high: 134.132 MAT: 100.83 median: 98.128 mean: 83.776 low: -120.373 |
|
| PE/G Ratio | -0.138 | |
| Price To Sales (P/S) | 5.828 | |
| Price To Sales QoQ | -15.864 % | |
| Price To Sales YoY | 6.111 % | |
| Price To Sales IPRWA | high: 10.689 mean: 6.613 median: 6.299 MAT: 5.828 low: 1.132 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 46.946 | |
| Forward PE/G | -0.064 | |
| Forward P/S | 9.69 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -12.245 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.164 | |
| Asset Turnover Ratio QoQ | 26.138 % | |
| Asset Turnover Ratio YoY | -9.335 % | |
| Asset Turnover Ratio IPRWA | high: 0.351 mean: 0.205 median: 0.18 MAT: 0.164 low: 0.145 |
|
| Receivables Turnover | 1.429 | |
| Receivables Turnover Ratio QoQ | 41.425 % | |
| Receivables Turnover Ratio YoY | 0.083 % | |
| Receivables Turnover Ratio IPRWA | high: 3.139 median: 2.019 mean: 2.001 MAT: 1.429 low: 1.082 |
|
| Inventory Turnover | 0.655 | |
| Inventory Turnover Ratio QoQ | -9.265 % | |
| Inventory Turnover Ratio YoY | -13.772 % | |
| Inventory Turnover Ratio IPRWA | high: 1.39 MAT: 0.655 mean: 0.603 median: 0.444 low: 0.332 |
|
| Days Sales Outstanding (DSO) | 63.867 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 149.825 | |
| Cash Conversion Cycle Days QoQ | 30.011 % | |
| Cash Conversion Cycle Days YoY | 2.847 % | |
| Cash Conversion Cycle Days IPRWA | high: 314.919 median: 229.5 mean: 184.6 MAT: 149.825 low: 69.534 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.949 | |
| CapEx To Revenue | -0.039 | |
| CapEx To Depreciation | -1.148 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.9 B | |
| Net Invested Capital | $ 4.5 B | |
| Invested Capital | $ 4.5 B | |
| Net Tangible Assets | $ 425.5 M | |
| Net Working Capital | $ 1.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.504 | |
| Current Ratio | 1.622 | |
| Current Ratio QoQ | -33.262 % | |
| Current Ratio YoY | -37.039 % | |
| Current Ratio IPRWA | high: 4.663 median: 3.012 mean: 2.572 MAT: 1.622 low: 0.64 |
|
| Quick Ratio | 1.119 | |
| Quick Ratio QoQ | -39.709 % | |
| Quick Ratio YoY | -38.095 % | |
| Quick Ratio IPRWA | high: 2.428 median: 2.087 mean: 1.738 MAT: 1.119 low: 0.415 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.576 | |
| Cost Of Debt | 0.813 % | |
| Interest Coverage Ratio | 3.144 | |
| Interest Coverage Ratio QoQ | -283.558 % | |
| Interest Coverage Ratio YoY | 5.326 % | |
| Interest Coverage Ratio IPRWA | high: 19.602 median: 14.542 mean: 6.65 MAT: 3.144 low: -19.172 |
|
| Operating Cash Flow Ratio | -0.089 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 80.428 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.684 % | |
| Revenue Growth | 23.219 % | |
| Revenue Growth QoQ | -146.632 % | |
| Revenue Growth YoY | -30.442 % | |
| Revenue Growth IPRWA | high: 26.988 % MAT: 23.219 % median: 18.205 % mean: 14.451 % low: -13.425 % |
|
| Earnings Growth | -733.333 % | |
| Earnings Growth QoQ | 575.441 % | |
| Earnings Growth YoY | 52.778 % | |
| Earnings Growth IPRWA | high: 240.909 % median: 34.783 % mean: 26.345 % low: -200.0 % MAT: -733.333 % |
|
| MARGINS | ||
| Gross Margin | 50.949 % | |
| Gross Margin QoQ | 3.2 % | |
| Gross Margin YoY | 3.65 % | |
| Gross Margin IPRWA | high: 68.414 % median: 58.803 % mean: 56.527 % MAT: 50.949 % low: 24.731 % |
|
| EBIT Margin | 9.06 % | |
| EBIT Margin QoQ | -249.579 % | |
| EBIT Margin YoY | 9.301 % | |
| EBIT Margin IPRWA | high: 26.028 % median: 26.028 % mean: 20.745 % MAT: 9.06 % low: -18.418 % |
|
| Return On Sales (ROS) | 7.707 % | |
| Return On Sales QoQ | -227.241 % | |
| Return On Sales YoY | -7.021 % | |
| Return On Sales IPRWA | high: 26.028 % median: 26.028 % mean: 21.198 % MAT: 7.707 % low: -17.96 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -339.91 M | |
| Free Cash Flow Yield | -5.726 % | |
| Free Cash Flow Yield QoQ | 2777.387 % | |
| Free Cash Flow Yield YoY | 17.965 % | |
| Free Cash Flow Yield IPRWA | high: 18.589 % mean: 1.235 % median: 0.311 % MAT: -5.726 % low: -14.537 % |
|
| Free Cash Growth | 2886.88 % | |
| Free Cash Growth QoQ | -2947.19 % | |
| Free Cash Growth YoY | -149.508 % | |
| Free Cash Growth IPRWA | MAT: 2886.88 % high: 341.141 % median: -66.513 % mean: -99.628 % low: -516.743 % |
|
| Free Cash To Net Income | -6.371 | |
| Cash Flow Margin | -15.105 % | |
| Cash Flow To Earnings | -2.884 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.857 % | |
| Return On Assets QoQ | -235.601 % | |
| Return On Assets YoY | -9.789 % | |
| Return On Assets IPRWA | high: 4.026 % median: 3.986 % mean: 3.249 % MAT: 0.857 % low: -6.028 % |
|
| Return On Capital Employed (ROCE) | 2.04 % | |
| Return On Equity (ROE) | 0.025 | |
| Return On Equity QoQ | -229.794 % | |
| Return On Equity YoY | -14.747 % | |
| Return On Equity IPRWA | high: 0.093 median: 0.049 mean: 0.042 MAT: 0.025 low: -0.223 |
|
| DuPont ROE | 2.481 % | |
| Return On Invested Capital (ROIC) | 1.52 % | |
| Return On Invested Capital QoQ | -320.61 % | |
| Return On Invested Capital YoY | -112.988 % | |
| Return On Invested Capital IPRWA | high: 5.299 % median: 4.851 % MAT: 1.52 % mean: 1.097 % low: -17.168 % |
|