Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $2.52M
• Dividend Yield: N/A
• Average Volume (3M): 23.36M
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.10
• Revenue Growth: -5.65%
• EPS Growth: -41.43%
• Country: US
• Employees: 122
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 2.55
• Shares Outstanding: 18,028,149
• 10 Day Avg. Volume: 23,338,138
• 30 Day Avg. Volume: 23,364,198
• PEG Ratio: -0.03
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -12.94
• Enterprise Value/Market Cap: -69.78
• Enterprise Value/Revenue: -1.13
• Enterprise Value/Gross Profit: -1.54
• Enterprise Value/Ebitda: -4.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Cheer Holding's overall stock score is primarily driven by its strong financial performance, which is offset by bearish technical indicators. The stock appears undervalued based on its P/E ratio, but the absence of a dividend yield and negative price momentum present challenges. The company's financial health is a significant strength, but attention is needed on revenue growth and cash flow stability.

Positive Factors

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Profitability Margins

High profitability margins indicate efficient operations and pricing power, supporting long-term financial health and shareholder value.

Cash Flow Management

Positive operating cash flow reflects strong cash generation ability, crucial for funding operations and investments without relying on external financing.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining growth momentum, which could impact future profitability and market competitiveness.

Free Cash Flow Volatility

Volatile free cash flow can hinder the ability to invest in growth opportunities and meet financial obligations, affecting long-term stability.

Nasdaq Compliance Challenge

Failure to meet Nasdaq's listing requirements could lead to delisting, impacting liquidity and investor confidence, unless resolved.

Cheer Holding Business Overview & Revenue Model

Company Description

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an e-commerce platform that allows users to access online store, live streaming, series TV shows, and online games, as well as online short videos, variety shows, and dramas. It is also developing CheerCar App, an interactive entertainment app; CheerReal, a digital collection NFT app; and CheerChat App, an overseas social audio app. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. The company was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Cheer Holding generates revenue through multiple streams, primarily from its investments in subsidiary companies that operate in diverse sectors. Key revenue streams include profits from product sales in its consumer goods division, licensing fees from technology solutions, and rental income from real estate properties owned within its portfolio. Additionally, the company may engage in joint ventures and partnerships that provide further financial returns, leveraging its capital to support high-growth potential businesses. Strategic acquisitions of companies with strong market positions also contribute to its earnings by expanding its revenue base and market reach.

Cheer Holding Financial Statement Overview

Summary

Cheer Holding exhibits strong financial health with high profitability margins and a solid balance sheet. The company has managed its operations efficiently, but the recent decline in revenue and free cash flow highlights potential areas for improvement.

Income Statement

Cheer Holding has demonstrated strong profitability with a consistent gross profit margin above 70% and a net profit margin around 20% in recent years. However, revenue has shown a slight decline from 2022 to 2024, indicating a potential challenge in maintaining growth momentum. The EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio, indicating minimal leverage. The equity ratio is strong, highlighting a solid capital structure. Return on equity is impressive, showcasing effective use of shareholders' funds to generate profits. The high level of cash and cash equivalents further strengthens the company's financial position.

Cash Flow

Operating cash flow has been positive, but free cash flow has experienced volatility, particularly in 2024. The operating cash flow to net income ratio suggests effective conversion of earnings into cash. However, the decline in free cash flow growth rate in recent years poses a concern for future liquidity and investment capabilities.

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	37.30M	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: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.17, and below the 200-day MA of 1.11, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 22.95 is Positive, neither overbought nor oversold. The STOCH value of 6.35 is Positive, 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	61 Neutral	$2.52M	0.07	7.01%	―	-5.65%	-41.43%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WIMI	56 Neutral	$70.07M	3.14	15.20%	―	-27.98%	―
SWAG	52 Neutral	$35.07M	-14.80	-5.04%	―	44.40%	48.49%
HHS	47 Neutral	$24.10M	―	-26.62%	―	-11.07%	82.06%
DRCT	39 Underperform	$4.60M	―	―	―	-62.46%	-12.90%
FLNT	38 Underperform	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%

Cheer Holding Corporate Events

Cheer Holding Faces Nasdaq Delisting Due to Low Share Price

On November 18, 2025, Cheer Holding, Inc. received a delisting notice from Nasdaq due to non-compliance with the Low Priced Stocks Rule, as its shares closed at $0.10 or less for ten consecutive trading days. The company has until November 26, 2025, to request a hearing to appeal the delisting decision, which would delay the suspension of its securities. Cheer Holding is exploring options to regain compliance, including a previously approved share consolidation.

Cheer Holding Evaluates Acquisition Proposals Amid Strategic Review

On November 18, 2025, Cheer Holding, Inc. announced the formation of a special committee to evaluate two preliminary non-binding proposals to acquire all of its shares. The proposals were received from Zhongsheng Dingxin Investment Fund Management and Excel Ally Ventures Limited, offering to acquire the company’s outstanding Class A shares for $0.56 and $0.52 per share, respectively. The special committee, composed of disinterested directors, will assess the proposals with the help of independent advisors. The board has not made any decisions regarding these proposals, and there is no assurance that any transaction will be finalized.

Cheer Holding Announces $15 Million Direct Offering

On November 5, 2025, Cheer Holding, Inc. announced a $15 million registered direct offering, comprising 187,500,000 Class A ordinary shares at $0.08 per share. The offering, expected to close on November 6, 2025, is facilitated by Univest Securities, LLC, and aims to raise funds for general working capital and corporate purposes. This strategic financial move is anticipated to bolster Cheer Holding’s operations and enhance its market positioning in the digital ecosystem sector.

Cheer Holding Receives Acquisition Proposals

On November 5, 2025, Cheer Holding, Inc. announced that it received two preliminary non-binding proposals to acquire all of its Class A ordinary shares. The proposals, from Zhongsheng Dingxin Investment Fund Management and Excel Ally Ventures Limited, offer cash per share at $0.56 and $0.52 respectively. The company’s Board of Directors is forming a special committee to evaluate these proposals and other potential strategic alternatives. The announcement has not led to any definitive decisions, and there is no assurance that any transaction will be finalized.

Cheer Holding Faces Nasdaq Compliance Challenge

On October 16, 2025, Cheer Holding, Inc. received a notification from The NASDAQ Stock Market LLC indicating non-compliance with the minimum bid price requirement of $1.00 per share. The notice does not currently affect the listing or trading of the company’s securities, and Cheer Holding has until April 14, 2026, to regain compliance. The company is monitoring its share price and evaluating options to address this issue, which could impact its market positioning if not resolved.

Cheer Holding Raises $8.5 Million in Public Offering

On October 1, 2025, Cheer Holding, Inc. successfully priced a best efforts public offering, raising approximately $8.5 million in gross proceeds. The offering, which closed on October 2, 2025, involved the sale of units comprising Class A ordinary shares and warrants, with the proceeds intended for general working capital and corporate purposes. The offering was managed by Univest Securities, LLC, and included lock-up agreements with key stakeholders, potentially impacting the company’s market operations and investor relations.

Cheer Holding Announces $8.5 Million Public Offering

On October 1, 2025, Cheer Holding, Inc. announced the pricing of a best-efforts public offering expected to raise approximately $8.5 million. The offering, which consists of 12,686,565 units including Class A shares and warrants, is set to close around October 2, 2025. The proceeds will be used for general corporate purposes, including sales and marketing expenses. This strategic move is anticipated to bolster Cheer Holding’s financial position and support its growth initiatives in the competitive mobile internet infrastructure market.