Mattel Stock Hasn't Been This Cheap Since the Financial Crisis

Shares of toymaker Mattel (NASDAQ: MAT), the company behind Barbie, Hot Wheels, and Fisher-Price, have tumbled 54% so far this year. While rival Hasbro has been firing on all cylinders, consistently reporting revenue and earnings growth, Mattel has seen its revenue and earnings plunge each year since 2014. Plummeting margins prompted a dividend cut earlier this year that erased a major reason for owning the stock.

Based on its current level of earnings, Mattel stock doesn't look particularly cheap. With earnings per share of $0.70 over the past 12 months, the stock trades at a price-to-earnings ratio of about 20. That's far from no-brainer bargain territory. But those earnings are severely depressed, making the stock look more expensive than it really is. Relative to sales, Mattel stock hasn't been this cheap since 2009, during the stock market plunge brought on by the global financial crisis.

Source: Fool.com