MattelVail Resorts

Mattel vs Vail Resorts

This page compares Mattel, Inc. and Vail Resorts Inc., examining business models, financial performance, and market context to help readers understand how each company operates within their sectors. T...

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Investment Analysis

Pros

  • Mattel achieved meaningful gross margin expansion in the second quarter of 2025, reaching approximately 50% adjusted gross margin.
  • The company grew its international sales by 7% in the second quarter, offsetting declines in North America.
  • Mattel maintains a strong balance sheet and continues to execute share repurchases, supporting shareholder value.

Considerations

  • Net sales declined 6% in the second quarter of 2025, primarily due to a 16% drop in North America.
  • Mattel trimmed its fiscal 2025 EPS outlook, reflecting ongoing macroeconomic and operational headwinds.
  • EBITDA margins are expected to decline slightly in 2025 and 2026 compared to 2024 levels.

Pros

  • Vail Resorts operates a leading global network of destination ski resorts, benefiting from strong brand recognition and recurring customer demand.
  • The company's enterprise value to sales ratio is relatively low, suggesting potential valuation appeal for investors.
  • Vail Resorts has a high return on equity, exceeding 48% over the past three years, indicating efficient capital use.

Considerations

  • Vail Resorts' stock has underperformed year-to-date, with a notable decline compared to broader market indices.
  • The Epic Pass turnaround is expected to take time, reflecting ongoing challenges in customer retention and pricing power.
  • The business is highly sensitive to weather conditions and macroeconomic factors affecting discretionary travel spending.

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