Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $9.34M
• Dividend Yield: N/A
• Average Volume (3M): 545.94K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.15
• 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: 11,635,568
• 10 Day Avg. Volume: 123,163
• 30 Day Avg. Volume: 545,937
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -18.82
• Enterprise Value/Revenue: -1.13
• Enterprise Value/Gross Profit: -1.54
• Enterprise Value/Ebitda: -4.87
• 1Y Price Target: $1.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $1.00 ▲(29.87% Upside)

Cheer Holding's strong financial performance is overshadowed by bearish technical indicators and a low P/E ratio, suggesting potential undervaluation or earnings concerns. The lack of dividend yield further limits its appeal. The absence of earnings call data and corporate events means these factors do not influence the score.

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 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 exhibits strong financial health with high profitability margins and a solid balance sheet. However, 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	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: 0.77
• 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 0.77 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 1.21, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 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	63 Neutral	$9.34M	0.39	7.01%	―	-5.65%	-41.43%
SWAG	61 Neutral	31.17M	-13.16	-13.08%	―	38.49%	-558.25%
WIMI	60 Neutral	94.67M	9.02	7.17%	―	-8.74%	―
HHS	45 Neutral	27.43M	-9.02	-13.57%	―	-6.49%	89.87%
DRCT	45 Neutral	7.52M	-0.18	125.02%	―	-74.79%	-690.57%
FLNT	42 Neutral	61.55M	-1.59	-140.49%	―	-12.84%	63.95%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%