At the time, Mattel Creations sold items like dollhouse furniture and picture frames, but in 1947, its first commercial success selling toys came in the form of a ukulele called Uke-A-Doodle. Shortly after Mattel Creations was founded, Matson sold his stake. Elliot and Ruth Handler retained sole control of the company.
Some of Mattel's most commercially successful products came to market in the 1950s and 1960s. The first Barbie doll came to market in March 1959 and would become the top-selling toy in the history of Mattel. The company also became a publicly traded entity in 1960.
A management shakeup occurred in 1975, when an investigation by the U.S. Securities and Exchange Commission concluded that Mattel had issued misleading financial reports during a period of financial turmoil. Ruth Handler, who was serving as CEO at the time, was indicted and convicted for stock manipulation and received a suspended sentence. Both Elliot and Ruth Handler were barred from the company and sold the last of their holdings in 1980.
Mattel also became known for licensing characters from famous companies to make toys. These include:
- Infant and preschool plush toys after purchasing exclusive licensing and sponsorship rights from Walt Disney Co. (DIS -0.14%).
- Becoming the master licensee for Harry Potter Toys through a deal with Warner Bros, which is now part of Warner Bros. Discovery (WBD -1.06%).
- A deal to license Thomas & Friends from HIT Entertainment, a company it later acquired.
In 1970, Mattel signaled its entertainment ambitions when it formed a joint venture film production company. Eventually, that led to the creation of Mattel Television and Mattel Films.
The TV production segment has been behind the release of series including "Thomas & Friends," "Masters of the Universe," "Monster High," and "Barbie." More recently, its film production division has been instrumental in the live-action "Barbie" and "Masters of the Universe" films.
Stock
How to buy Mattel stock
Investing in Mattel stock isn't difficult because it's a publicly traded company. If you want to invest in Mattel stock, here's what you need to know.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Is Mattel profitable?
Mattel has fluctuated in terms of profitability recently and was not profitable in part of 2024. However, the company finished fiscal 2024 by reporting net income of $542 million for the 12-month period, a $327 million improvement from the prior year.
For the year, operating cash flow came to $801 million, a decline of $69 million, primarily driven by higher working capital requirements, but partially offset by higher net earnings.
Management previously announced in the company's 2023 financial report that it plans to achieve cost savings of $200 million by 2026 as part of a move to consistent profitability. The company authorized a $600 million share repurchase program for 2025.
Does Mattel pay a dividend?
Mattel does not currently pay a dividend. It suspended its dividend in 2017, around the time it was beginning to experience the negative impact of the Toys "R" Us bankruptcy, which drove sales downward and spurred a suspension of the dividend to free up additional capital.
Exchange-Traded Fund (ETF)
Will Mattel stock split?
Mattel has gone through multiple stock splits, but its most recent split occurred almost three decades ago. These splits have been as follows.
- 1996-03-04: 5:4
- 1995-01-23: 5:4
- 1994-01-10: 5:4
- 1992-06-03: 3:2
- 1991-11-18: 5:4
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The bottom line on Mattel
Mattel is a leader in the toy industry, and its entertainment divisions have been involved in some of the most popular character-driven TV series, commercials, and films in recent memory. At the same time, it's important for investors considering the stock to understand that the toy industry is cyclical. Spending in this space remains weak in the current economic environment.
Mattel has a lot of work ahead to improve its consistent profitability and grow its top line. For investors who want a slice of the action of the value proposition of a storied toymaker and entertainment company with a house of iconic brands, that may induce some to take a position in Mattel stock.
On the other hand, investors searching for steady near-term growth, dividend income, or a less risky stock may want to tread cautiously.
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