Is MAT a high-quality business?

AlphaMadera's AlphaQuality grade scores Mattel, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MAT compares to a Buffett-style quality bar.

What is Mattel, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MAT based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MAT a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MAT - Mattel, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $19.29 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 57.8 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 55.5

5yr Avg ROIC 10.5% 63/100
Operating Margin Trend -0.31 pp/yr 38/100

Capital Efficiency

Weight: 15%

A+ 94.7

5yr Avg ROE 21.9% 95/100
5yr Share-Count CAGR -2.9% 94/100

Growth Quality

Weight: 15%

F 16.5

5yr Revenue CAGR -0.5% 19/100
5yr EPS CAGR -16.3% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B+ 78.1

5yr FCF Margin 8.5% 64/100
5yr FCF/NI Conversion 1.29x 95/100

Balance Sheet

Weight: 20%

C+ 60.6

Net Debt / EBITDA 2.10x 68/100
Interest Coverage (EBIT/Int) 5.11x 65/100
Altman Z-Score 2.01 41/100

Stability

Weight: 15%

D+ 41.1

EPS Volatility (σ/μ) 0.57 25/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

5 of 5 gurus held; 2 new buys; 2 added; 1 trimmed.

Holders: 5 +2
Avg Δ position: +1631.5%
New buys: 2
Full exits: 0

Dalio new
Laffont new
Cooperman increased +3783%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.