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Jakks Pacific (JAKK)
NASDAQ:JAKK
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Jakks Pacific
(NASDAQ:JAKK)60Neutral
Positive Factors
Balance Sheet
JAKKS Pacific has no debt and increased its cash on the balance sheet, providing ample capital to fund operations and growth initiatives.
Financial Performance
JAKKS Pacific reported net sales and adjusted EBITDA that exceeded consensus projections and estimates.
Negative Factors
Tariffs Impact
Tariffs and elevated direct selling expenses impacted financial performance and visibility for future earnings.
Jakks Pacific (JAKK) vs. S&P 500 (SPY)
Market Cap
$286.35M
Dividend YieldN/A
Average Volume (3M)185.63K
Price to Earnings (P/E)8.5
Beta (1Y)1.61
Revenue Growth-3.96%
EPS Growth-67.32%
CountryUS
Employees659
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)3.02
Shares Outstanding11,146,230
10 Day Avg. Volume228,049
30 Day Avg. Volume185,631
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)5.70
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside79.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Jakks Pacific Business Overview & Revenue Model
Company DescriptionJakks Pacific, Inc. (JAKK) is a leading designer, manufacturer, and marketer of toys and consumer products. The company operates in the toy and consumer product sectors, offering a diverse range of products that include action figures, dolls, role-play toys, outdoor toys, and seasonal products. Jakks Pacific collaborates with well-known brands and licenses to produce themed merchandise that appeals to a wide demographic, from children to collectors.
How the Company Makes MoneyJakks Pacific generates revenue primarily through the sale of its toy and consumer products to retailers, distributors, and directly to consumers. The company leverages strategic licensing agreements with major entertainment companies and franchises, enabling them to produce products based on popular characters and themes. This includes partnerships with Disney, Warner Bros., Nintendo, and other significant entities, allowing Jakks Pacific to offer products that have strong market appeal. Additionally, the company benefits from seasonal sales spikes, such as during the holiday season, and through collaborations with retail giants for exclusive product lines. Jakks Pacific's revenue streams are diversified across various product categories and geographical markets, enhancing its ability to capture a broad segment of the consumer market.
Jakks Pacific Financial Statement Overview
Summary
Jakks Pacific shows mixed financial performance with profitability and equity improvements. However, recent declines in margins and cash flow indicate potential challenges. Despite progress in reducing debt, the company must address operational efficiency and cash generation to ensure long-term stability and growth.Income Statement
Jakks Pacific has shown fluctuating revenue with a decline from 2022 to 2023 and a further drop to 2024. The gross profit margin improved from 2022 to 2023 but saw a slight decrease in 2024. The net profit margin is positive, indicating profitability, but declined over the past year. EBIT and EBITDA margins have weakened, reflecting challenges in operational efficiency.72
Positive
Balance Sheet
The debt-to-equity ratio has improved significantly over the years, indicating reduced financial leverage. Stockholders' equity has increased, enhancing the equity ratio and showing stronger financial stability. Return on equity remains positive, but with a slight decrease, suggesting a need for improved profitability.68
Positive
Cash Flow
Free cash flow has been volatile, showing strong growth in 2023 but falling to zero in 2024. The lack of operating cash flow in the latest period raises concerns about sustainability. Cash flow management needs attention to support ongoing operations and potential growth.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 691.04M | 711.56M | 796.19M | 621.12M | 515.87M | Gross Profit |
| 213.02M | 223.35M | 211.29M | 182.96M | 149.76M | EBIT |
| 39.68M | 59.11M | 60.97M | 29.01M | 12.91M | EBITDA |
| 40.08M | 59.98M | 71.85M | 49.02M | 25.84M | Net Income Common Stockholders |
| 35.25M | 38.41M | 91.41M | -5.89M | -14.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 69.94M | 72.35M | 85.30M | 44.52M | 87.95M | Total Assets |
| 444.87M | 398.95M | 399.30M | 357.05M | 329.37M | Total Debt |
| 56.52M | 24.05M | 87.76M | 114.03M | 183.17M | Net Debt |
| -13.41M | -48.30M | 2.46M | 69.51M | 95.22M | Total Liabilities |
| 204.04M | 202.84M | 246.82M | 299.15M | 316.43M | Stockholders Equity |
| 240.33M | 195.41M | 151.48M | 56.57M | 11.73M |
| Cash Flow | Free Cash Flow | |||
| 27.70M | 57.50M | 75.71M | -14.10M | 35.30M | Operating Cash Flow |
| 38.95M | 66.40M | 86.10M | -5.88M | 43.57M | Investing Cash Flow |
| -12.89M | -8.91M | -10.39M | -8.19M | -8.19M | Financing Cash Flow |
| -26.92M | -72.29M | -31.02M | -32.79M | -10.95M |
Jakks Pacific Technical Analysis
Negative
25.69
Price Trends
28.95
Negative
28.21
Negative
24.62
Positive
Market Momentum
-1.19
Positive
32.34
Neutral
16.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAKK, the sentiment is Negative. The current price of 25.69 is below the 20-day moving average (MA) of 29.81, below the 50-day MA of 28.95, and above the 200-day MA of 24.62, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAKK.
Jakks Pacific Risk Analysis
Jakks Pacific disclosed 31 risk factors in its most recent earnings report. Jakks Pacific reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jakks Pacific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.93B | 13.18 | 24.55% | ― | -1.13% | 163.15% | |
66 Neutral | $8.98B | 23.41 | 34.75% | 3.26% | -17.28% | ― | |
62 Neutral | $3.99B | 42.03 | 14.24% | ― | 46.27% | -26.45% | |
60 Neutral | $286.35M | 8.50 | 15.57% | ― | -3.96% | -67.32% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
50 Neutral | $10.72B | 134.23 | 2.08% | ― | -24.04% | ― | |
40 Underperform | $485.48M | ― | -6.33% | ― | -7.96% | 87.74% |
* Consumer Cyclical Sector Average
Performance Comparison
JAKK
Jakks Pacific
25.69
2.33
9.97%
GME
GameStop
24.00
9.57
66.32%
HAS
Hasbro
64.35
14.03
27.88%
MAT
Mattel
21.00
0.88
4.37%
ELF
e.l.f. Beauty
70.68
-123.30
-63.56%
FNKO
Funko
8.96
2.75
44.28%
Jakks Pacific Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -25.54% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with notable achievements in international growth, strategic initiatives, and new product successes. However, these were balanced by declines in certain business segments and financial metrics, such as operating margins and adjusted EPS.Highlights
FOB Sales Increase
Over 75% of 2024 sales volume was sold on an FOB basis from China, indicating strong logistics partnerships and operational efficiency.
International Growth
Disguise business grew outside of North America for the fourth consecutive year, reaching an all-time high in 2024.
Dividend Initiation
JAKKS Pacific announced a quarterly dividend of $0.25 per share, showcasing confidence in future cash flow.
Sonic the Hedgehog Success
Strong consumer demand for Sonic toys, with Ultimate Talking Sonic being the number one new action figure during the holiday season.
Latin America Sales Growth
Latin American sales grew by over 19%, reaching $38 million for the full year.
Strong Financial Position
The company has no long-term debt or preferred shareholders, enhancing operational focus.
Lowlights
Costume Business Decline
Costume business was down 7.5% for the full year, primarily due to softness in the U.S. market.
Overall Revenue Decline
Toy and consumer products business was down 1.8% for the full year.
Operating Margin Decline
Annual operating margin decreased to 5.7%, a 260 basis point decline from 8.3% in 2023.
Adjusted EPS Decrease
Adjusted EPS was $3.79, down from $4.62 in the prior year.
Company Guidance
During JAKKS Pacific's Fourth Quarter and Full Year 2024 Earnings Conference Call, the company reported a 4.8% growth in the second half compared to 2023, despite a full-year decline of 1.8% in their toy and consumer products division. Their costume business experienced a 7.5% decrease due to U.S. market softness, although international growth remained strong, particularly with a 19% increase in Latin American sales, reaching $38 million. JAKKS has also achieved over 75% of 2024 sales on an FOB basis from China, reflecting a strategic push for larger quantities at competitive prices. The company ended the year with a full-year gross margin of 30.8% and annual operating margin of 5.7%. Adjusted earnings per share were $3.79, down from $4.62 in 2023, with a full-year EBITDA of $59.3 million. JAKKS introduced a quarterly dividend of $0.25 per share, aiming to maintain this while managing cash flow prudently. With no long-term debt and a focus on expanding their European operations, JAKKS is positioned for sustainable growth, leveraging their diversified product lines and strong category expertise.Jakks Pacific Corporate Events
DividendsFinancial Disclosures
Jakks Pacific Announces 2024 Financial Results and Dividend
Positive
Feb 20, 2025
On February 20, 2025, Jakks Pacific announced its financial results for the fourth quarter and full year of 2024, revealing mixed performance with a 3% increase in net sales for the fourth quarter but a 3% decline for the full year. The company reported improved gross margins and a reduction in operating losses compared to the previous year, and also declared the initiation of a quarterly cash dividend program, reflecting confidence in its financial stability and future growth prospects. Despite facing challenges in the costumes sector, Jakks Pacific saw international growth and maintained strong cash reserves, ending the year debt-free.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.