Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $7.83M
• Dividend Yield: N/A
• Average Volume (3M): 23.36M
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.23
• Revenue Growth: -5.65%
• EPS Growth: -41.43%
• Country: US
• Employees: 122
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 4,686,199
• 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: -19.32
• Enterprise Value/Revenue: -0.97
• Enterprise Value/Gross Profit: -1.32
• Enterprise Value/Ebitda: -4.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $2.00 ▲(11.11% Upside)

The score is primarily supported by strong financial performance (high margins, low leverage, strong liquidity) and very low valuation based on the provided P/E. These positives are tempered by weak technical conditions, including a clear downtrend and bearish momentum indicators.

Positive Factors

High Profitability / Margins

Sustained gross margins >70% and ~20% net margins indicate durable pricing power and operational efficiency across subsidiaries. High margins support internal cash generation, fund reinvestment or acquisitions, and provide a cushion versus cyclical revenue pressures over months.

Strong Balance Sheet

Low leverage and ample cash provide lasting financial flexibility to fund working capital, support underperforming subsidiaries, or pursue strategic acquisitions without immediate reliance on costly external financing, improving resilience over the medium term.

Diversified Holding Model

A multi‑sector holding structure—consumer goods, tech, and real estate—creates multiple revenue streams (sales, licensing, rentals). Structural diversification reduces concentration risk, smooths cash flows, and gives management flexibility to reallocate capital toward higher-return units long term.

Negative Factors

Top-line Weakness

A persistent revenue decline over multiple years signals weakening demand or market share erosion. Over 2–6 months this trend can pressure sustainable growth prospects, constrain reinvestment capacity, and force trade-offs between margin protection and revenue-restoration initiatives.

Volatile Free Cash Flow

Volatility in free cash flow undermines the company’s ability to consistently fund capex, strategic M&A, or shareholder returns. Even with positive operating cash flow, erratic FCF increases reliance on external financing and can limit sustained investment in growth initiatives.

Listing and Financing Stress

Nasdaq non‑compliance notices, concurrent share‑raises and consolidation proposals point to structural liquidity and capital‑access stress. Loss of U.S. listing or repeated dilutive financings would reduce investor access, raise cost of capital, and constrain strategic options over the medium term.

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. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content and develops lifestyle short videos and interactive live-broadcasting; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. Further, the company provides CHEERS Telepathy, a multimodal artificial intelligence content creation platform; CHEERS API, a platform that provides industry digital transformation solutions and data integration; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; CheerChat App, an AI social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. It also produces short videos, online variety shows, drama, live streams, and Cheers series. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. 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

Strong overall financial health driven by high profitability (gross margin consistently above 70% and net margin around 20%) and a very solid balance sheet with low leverage and strong liquidity. Offsetting factors include a slight revenue decline from 2022 to 2024 and volatile/free cash flow weakness in 2024.

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	39.36M	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: 1.80
• 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 1.8 is above the 20-day moving average (MA) of 1.55, below the 50-day MA of 2.05, and below the 200-day MA of 41.83, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 49.29 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	70 Outperform	$7.83M	0.02	7.01%	―	-5.65%	-41.43%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WIMI	56 Neutral	$67.10M	2.62	15.20%	―	-27.98%	―
FLNT	52 Neutral	$87.72M	-2.58	-127.41%	―	-18.94%	37.05%
SWAG	52 Neutral	$37.12M	-23.74	-5.04%	―	44.40%	48.49%
HHS	47 Neutral	$22.99M	-4.20	-26.62%	―	-11.07%	82.06%
DRCT	41 Neutral	$2.13M	-0.02	―	―	-62.46%	-12.90%

Cheer Holding Corporate Events

Cheer Holding to Execute 1-for-50 Share Consolidation to Address Nasdaq Delisting Risk

On December 19, 2025, Cheer Holding, Inc. announced that it will implement a 1-for-50 consolidation of its Class A ordinary shares, effective at 4:05 p.m. New York time on December 22, 2025, with post-consolidation trading on the Nasdaq Capital Market set to begin on December 23, 2025 under the existing ticker symbol “CHR.” The move, approved by shareholders on May 12, 2025, will cut the number of issued and outstanding Class A ordinary shares from 234,309,902 to roughly 4,686,199, with fractional positions rounded up to whole shares and all related warrants and equity rights adjusted proportionately, while also resetting the company’s authorized share capital structure. The consolidation is aimed at lifting Cheer Holding’s per-share trading price to address Nasdaq’s delisting threat after the stock traded at or below $0.10 for ten consecutive sessions and follows Nasdaq’s November 19, 2025 determination to delist the shares, which the company has appealed ahead of a January 13, 2026 hearing, underscoring the critical role of the action in preserving its U.S. listing and market visibility for shareholders.

The most recent analyst rating on (CHR) stock is a Hold with a $0.05 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

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.

The most recent analyst rating on (CHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

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.

The most recent analyst rating on (CHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

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.

The most recent analyst rating on (CHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

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.

The most recent analyst rating on (CHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

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.

The most recent analyst rating on (CHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.