Cheer Holding (CHR) AI Stock Analysis

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Cheer Holding

(NASDAQ:CHR)

Rating:72Outperform

Price Target:

$1.50

▲( 0.00% Upside)

Cheer Holding receives a solid score driven by strong financial performance and an attractive valuation. Technical analysis presents some challenges with the stock trading below key moving averages. The lack of earnings call data and corporate events does not affect the score.

Cheer Holding (CHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$17.34M

Dividend YieldN/A

Average Volume (3M)40.80K

Price to Earnings (P/E)0.6

Beta (1Y)0.42

Revenue Growth-3.37%

EPS Growth-23.21%

CountryUS

Employees122

SectorCommunication Services

Sector Strength81

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)2.55

Shares Outstanding11,635,568

10 Day Avg. Volume42,300

30 Day Avg. Volume40,799

Financial Highlights & Ratios

PEG Ratio0.24

Price to Book (P/B)0.05

Price to Sales (P/S)0.00

P/FCF Ratio2.09

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.75

Price Target Upside150.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Cheer Holding Business Overview & Revenue Model

Company DescriptionCheer Holding (CHR) is a diversified conglomerate operating in multiple sectors including technology, real estate, and consumer goods. The company focuses on developing innovative solutions and high-quality products that meet the needs of modern consumers and businesses. With a commitment to sustainability and excellence, Cheer Holding leverages its expertise across various industries to drive growth and value for its stakeholders.

How the Company Makes MoneyCheer Holding makes money through a diversified revenue model that includes sales of consumer goods, leasing and management of real estate properties, and technological services. The company's consumer goods sector generates revenue through the production and sale of household products, electronics, and personal care items. In real estate, Cheer Holding earns money by developing and managing commercial and residential properties, collecting rental income, and engaging in property sales. The technology sector contributes to earnings through the provision of software solutions, IT services, and consulting. Strategic partnerships with industry leaders and a focus on innovation are significant factors that enhance Cheer Holding's revenue streams.

Cheer Holding Financial Statement Overview

Summary

Cheer Holding has a solid financial foundation with strong profitability and a conservative capital structure. Despite a decline in revenue, the company's strong balance sheet and efficient operations are commendable. However, negative free cash flow due to high capital expenditures needs attention.

Income Statement

Positive

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

Very Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
32.21M	25.59M	29.29M	26.73M	36.29M	30.67M
	EBITDA
36.09M	29.41M	33.06M	30.06M	38.80M	54.27M
	Net Income Common Stockholders
34.15M	25.97M	30.48M	26.89M	35.29M	48.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.23M	197.66M	194.53M	70.48M	77.30M	19.46M
	Total Assets
327.63M	346.59M	327.63M	205.96M	195.17M	143.40M
	Total Debt
5.95M	11.32M	5.95M	5.10M	6.42M	10.93M
	Net Debt
-188.27M	-186.34M	-188.27M	-65.38M	-70.89M	-6.80M
	Total Liabilities
47.63M	41.52M	47.63M	33.46M	35.71M	38.95M
	Stockholders Equity
279.93M	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 Price1.50

Price Trends

50DMA

1.37

Positive

100DMA

1.88

Negative

200DMA

2.29

Negative

Market Momentum

MACD

0.05

Negative

RSI

52.61

Neutral

STOCH

60.78

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 1.5 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.37, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHR.

Cheer Holding Risk Analysis

Cheer Holding disclosed 110 risk factors in its most recent earnings report. Cheer Holding reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

Our dual-class voting structure will have the effect of concentrating voting control with holders of Class B Ordinary Shares, which will limit the ability of our other investors to influence corporate matters, including the election of directors and the approval of any change of control transaction. Q4, 2024

We cannot predict the effect our dual-class structure may have on the market of the Class A Ordinary Shares. Q4, 2024

We are a "controlled company" within the meaning of the Nasdaq Stock Market Listing Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies. Q4, 2024

Cheer Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	72 Outperform	$17.34M	0.59	8.88%	―	-3.37%	-23.21%
Sector *	60 Neutral	$14.06B	6.51	-3.76%	3.69%	2.48%	-35.40%
SWAG	56 Neutral	$23.26M	―	-12.15%	―	17.04%	-2188.42%
GIGM	54 Neutral	$15.86M	―	-5.02%	―	-30.80%	33.18%
DLPN	46 Neutral	$12.30M	―	-98.74%	―	0.31%	27.47%
ANGH	43 Neutral	$37.65M	―	-270.84%	―	88.72%	-85.53%
DRCT	40 Underperform	$10.12M	―	-320.07%	―	-69.54%	-19665.56%

* Communication Services Sector Average

Performance Comparison

CHR

Cheer Holding

1.43

-1.36

-48.75%

GIGM

Gigamedia

1.44

0.12

9.09%

DLPN

Dolphin Entertainment

1.08

-1.16

-51.79%

ANGH

Anghami Inc.

0.52

-0.58

-52.73%

SWAG

Stran & Company

1.21

0.08

7.08%

DRCT

Direct Digital Holdings

0.49

-2.96

-85.80%

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.