Jakks Pacific (JAKK) AI Stock Analysis

• Market Cap: $206.54M
• Dividend Yield: 1.35%
• Average Volume (3M): 143.77K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.12
• Revenue Growth: -2.88%
• EPS Growth: -14.25%
• Country: US
• Employees: 680
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Leisure
• EPS (TTM): 3.02
• Shares Outstanding: 11,146,230
• 10 Day Avg. Volume: 154,273
• 30 Day Avg. Volume: 143,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.40
• Price to Cash Flow (P/CF): 1.30
• P/FCF Ratio: 1.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $46.00
• Price Target Upside: 148.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Jakks Pacific's overall score reflects a balance of strengths and challenges. Their solid financial position, lack of long-term debt, and strategic international growth are positive, but recent declines in profitability and cash flow generation present risks. Technical analysis suggests caution, while valuation metrics indicate potential undervaluation. The initiation of a dividend demonstrates confidence in future performance.

Positive Factors

Dividend Initiation

The company initiated a quarterly dividend, which could attract a new class of investors to the stock.

Financial Performance

JAKKS Pacific reported net sales and adjusted EBITDA that exceeded consensus projections and estimates.

Negative Factors

Direct Selling Expenses

Tariffs and elevated direct selling expenses impacted financial performance and visibility for future earnings.

Tariffs Impact

Uncertainty caused by tariffs and a tough comparison for upcoming quarters led to lowered sales and earnings forecasts.

Jakks Pacific Business Overview & Revenue Model

Company Description

JAKKS Pacific, Inc. develops, produces, markets, sells, and distributes toys, consumables, and electronics and related products worldwide. It operates in two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.

How the Company Makes Money

Jakks 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 exhibits a mixed financial performance. While there have been improvements in financial stability and reduced debt, recent declines in margins and cash flow generation pose challenges. Profitability remains, but operational efficiency needs enhancement.

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.

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.

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.

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
50.87M	59.98M	71.85M	49.02M	25.84M
	Net Income Common Stockholders
33.92M	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

• Technical Analysis Sentiment: Negative
• Last Price: 18.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 18.53 is below the 20-day moving average (MA) of 23.24, below the 50-day MA of 26.80, and below the 200-day MA of 25.30, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAKK.

Jakks Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAT	73 Outperform	$4.86B	9.44	24.55%	―	-1.13%	163.15%
ESCA	70 Outperform	$206.46M	16.34	7.79%	3.97%	-4.57%	31.28%
HAS	68 Neutral	$7.28B	18.93	34.75%	4.04%	-17.28%	―
JAKK	62 Neutral	$206.54M	5.90	15.57%	1.35%	-2.88%	-14.25%
Sector *	59 Neutral	$11.48B	10.33	-0.84%	4.02%	1.25%	-16.06%
JOUT	48 Neutral	$231.26M	―	-9.70%	5.83%	-9.98%	-348.96%
FNKO	45 Neutral	$244.32M	―	-6.33%	―	-4.22%	90.89%

Jakks Pacific Corporate Events

Jakks Pacific Restructures Board Ahead of 2025 Meeting

Jakks Pacific announced a restructuring of its Board of Directors on March 25, 2025, reducing the number of directors from seven to six, and adjusting the composition of Class III directors to one. The company’s 2025 Annual Meeting is scheduled for June 20, 2025, with shareholder notifications expected by May 6, 2025, and a nomination deadline of April 25, 2025.

Jakks Pacific Announces 2024 Financial Results and Dividend

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.