Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $14.44M
• Dividend Yield: N/A
• Average Volume (3M): 85.38K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 0.33
• Revenue Growth: -5.65%
• EPS Growth: -41.43%
• Country: US
• Employees: 122
• Sector: Communication Services
• Sector Strength: 89
• Industry: Advertising Agencies
• EPS (TTM): 2.55
• Shares Outstanding: 11,635,568
• 10 Day Avg. Volume: 52,644
• 30 Day Avg. Volume: 85,380
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -12.18
• Enterprise Value/Revenue: -1.13
• Enterprise Value/Gross Profit: -1.54
• Enterprise Value/Ebitda: -4.87
• 1Y Price Target: $1.50
• Price Target Upside: 26.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $1.50 ▲(26.05% Upside)

Cheer Holding's strong valuation and solid financial performance are the primary strengths, suggesting potential for future growth. However, the bearish technical indicators and recent declines in revenue and cash flow present risks that need to be addressed to improve investor confidence.

Cheer Holding Business Overview & Revenue Model

Company Description

Cheer Holding (CHR) is a diversified holding company focused on the sports and entertainment sectors, specializing in the development and management of branded athletic apparel, equipment, and related services. The company operates through various subsidiaries that cater to both individual consumers and commercial clients, providing a wide range of products that enhance athletic performance and promote healthy lifestyles. CHR's core offerings include sportswear, footwear, and accessories, as well as event management and sponsorship in the sports domain.

How the Company Makes Money

Cheer Holding generates revenue through multiple streams, primarily from the sale of its branded athletic apparel and equipment. The company sells its products through retail outlets, e-commerce platforms, and wholesale distribution to other retailers. Additionally, CHR earns income from event sponsorships and management fees associated with sports events and competitions that it organizes. Strategic partnerships with professional sports teams and athletes further enhance its brand visibility and drive sales. The company also explores licensing agreements for its brand, which provides an additional revenue stream through royalties.

Cheer Holding Financial Statement Overview

Summary

Cheer Holding demonstrates a solid financial foundation with strong profitability, efficient operations, and a conservative capital structure. The balance sheet is robust with low debt levels, but challenges remain in reversing the recent revenue decline and improving free cash flow.

Income Statement

Cheer Holding exhibits strong gross profit margins consistently above 70%. However, revenue has slightly declined over the past year by approximately 3.4%. Despite this, net profit margins remain healthy, and EBIT and EBITDA margins are solid, indicating efficient operational management. The company needs to address the recent revenue decline to maintain its profitability trajectory.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio, reflecting conservative leverage. The equity ratio is high at around 88%, showcasing financial stability. Return on equity is strong, driven by consistent profitability. This strong balance sheet provides a buffer against economic fluctuations.

Cash Flow

Operating cash flow is positive, yet the free cash flow is negative due to significant capital expenditures. The operating cash flow to net income ratio indicates effective cash generation relative to earnings. However, the negative free cash flow signals potential challenges in funding operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.95M	147.20M	152.33M	157.08M	153.01M	123.76M
Gross Profit	114.46M	107.81M	112.78M	116.50M	118.07M	85.28M
EBITDA	36.09M	29.41M	33.06M	30.06M	38.80M	54.27M
Net Income	34.15M	25.97M	30.48M	26.89M	35.29M	48.99M
Balance Sheet
Total Assets	333.24M	346.59M	327.63M	205.96M	195.17M	143.40M
Cash, Cash Equivalents and Short-Term Investments	186.38M	197.66M	194.53M	70.48M	77.30M	19.46M
Total Debt	8.64M	11.32M	5.95M	5.10M	6.42M	10.93M
Total Liabilities	47.09M	41.52M	47.63M	33.46M	35.71M	38.95M
Stockholders Equity	286.07M	304.99M	279.93M	172.43M	158.91M	103.98M
Cash Flow
Free Cash Flow	8.26M	-1.99M	42.17M	-250.00K	43.66M	5.96M
Operating Cash Flow	8.25M	22.88M	42.17M	7.74M	46.45M	8.74M
Investing Cash Flow	59.00K	-24.86M	-3.00K	-7.99M	-1.05M	-4.42M
Financing Cash Flow	24.98M	10.55M	82.02M	508.00K	13.29M	5.38M

Cheer Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.19
• 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 CHR, the sentiment is Negative. The current price of 1.19 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.48, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHR.

Cheer Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	73 Outperform	$14.44M	0.60	7.01%	―	-5.65%	-41.43%
SWAG	61 Neutral	$31.36M	―	-7.18%	―	38.49%	-558.25%
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%
WIMI	60 Neutral	$39.58M	7.94	8.21%	―	-8.74%	―
FLNT	46 Neutral	$57.76M	―	-115.36%	―	-12.84%	63.95%
HHS	45 Neutral	$26.69M	―	-14.09%	―	-6.49%	89.87%
DRCT	45 Neutral	$10.36M	―	-320.07%	―	-74.79%	-690.57%