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Funko (FNKO)
NASDAQ:FNKO
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Funko
(NASDAQ:FNKO)
37Underperform
Positive Factors
Leadership and Strategy
Analyst remains confident in the potential for strengthening growth trends in 2025 due to new CEO Cynthia William's strategies.
Product Demand
Content-led product demand is promising for 2025, with FNKO poised to benefit from product launches tied to major Hollywood properties.
Negative Factors
Retail Environment
Retailers remain cautious into the holidays.
Funko (FNKO) vs. S&P 500 (SPY)
Market Cap
$401.81M
Dividend YieldN/A
Average Volume (3M)960.72K
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth-4.22%
EPS Growth90.89%
CountryUS
Employees1,299
SectorConsumer Cyclical
Sector Strength49
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-0.30
Shares Outstanding52,722,830
10 Day Avg. Volume1,418,203
30 Day Avg. Volume960,722
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)31.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.67Price Target Upside43.80% Upside
Rating ConsensusHold
Number of Analyst Covering3
Funko Business Overview & Revenue Model
Company DescriptionFunko, Inc. is a pop culture consumer products company, which engages in designing, sourcing, and distribution of licensed pop culture products. Its product lines include media and entertainment content, which comprises movies, TV shows, video games, music and sports. The company was founded in April 21, 2017 and is headquartered in Everett, WA.
How the Company Makes MoneyFunko generates revenue primarily through the sale of its licensed pop culture collectibles and consumer products. The company's key revenue streams include wholesale distribution to retail partners such as big-box stores, specialty retailers, and online platforms, as well as direct-to-consumer sales through its own e-commerce site and physical retail locations. Funko's strong licensing partnerships with major entertainment franchises and brands are significant contributors to its earnings, allowing the company to produce a diverse range of products that resonate with a broad audience. Additionally, Funko capitalizes on limited edition releases and exclusive variants, which often create a sense of urgency and collectible value among consumers, further driving sales.
Funko Financial Statement Overview
Summary
Funko faces profitability and leverage challenges, evidenced by declining revenues and negative net income, paired with a high debt-to-equity ratio. While there are improvements in cash flow generation, the company must address revenue and profitability issues to ensure long-term financial stability.Income Statement
The income statement shows challenges with profitability as indicated by negative net income and declining revenue over the TTM period. Gross profit margin improved to 54.57% from 31.17% the previous year, but net profit margins remain negative at -1.40%. The company has seen a significant revenue decline of 4.22% in the TTM, indicating potential issues in maintaining market share or demand.35
Negative
Balance Sheet
The balance sheet stability is concerning with a high debt-to-equity ratio of 1.12, indicating potential leverage risks. Stockholders' equity is steady, but the equity ratio has decreased to 32.95%, reflecting reduced asset backing by equity. Return on equity remains negative at -6.32%, highlighting profitability challenges.40
Negative
Cash Flow
The cash flow shows improvement with a positive free cash flow growth rate, turning from negative to positive $42.95M in the TTM. Operating cash flow to net income ratio is strong at -4.33, suggesting healthy cash generation relative to net income. However, free cash flow to net income ratio remains problematic due to negative net income.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.05B | 1.10B | 1.32B | 1.03B | 652.54M | 795.12M | Gross Profit |
| 572.86M | 341.69M | 434.02M | 380.99M | 249.15M | 282.54M | EBIT |
| 18.04M | -103.83M | -12.71M | 95.47M | 23.54M | 46.61M | EBITDA |
| 72.02M | 55.79M | 34.96M | 136.66M | 67.91M | 88.76M | Net Income Common Stockholders |
| -14.72M | -154.08M | -5.24M | 67.85M | 9.76M | 27.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 34.66M | 36.45M | 19.20M | 83.56M | 52.26M | 25.23M | Total Assets |
| 707.25M | 804.64M | 1.09B | 967.50M | 763.59M | 796.47M | Total Debt |
| 260.31M | 362.35M | 347.08M | 238.63M | 262.12M | 315.26M | Net Debt |
| 225.65M | 325.90M | 327.88M | 155.07M | 209.87M | 290.03M | Total Liabilities |
| 474.24M | 566.61M | 701.46M | 570.95M | 441.14M | 491.32M | Stockholders Equity |
| 233.02M | 231.94M | 368.22M | 321.64M | 242.27M | 225.41M |
| Cash Flow | Free Cash Flow | ||||
| 42.95M | -4.20M | -99.28M | 59.60M | 88.76M | 48.50M | Operating Cash Flow |
| 63.74M | 30.93M | -40.13M | 87.36M | 107.24M | 90.77M | Investing Cash Flow |
| -13.39M | -39.80M | -78.06M | -27.38M | -18.48M | -48.63M | Financing Cash Flow |
| -58.58M | 25.60M | 54.64M | -28.63M | -61.84M | -28.34M |
Funko Technical Analysis
Negative
7.42
Price Trends
13.01
Negative
12.28
Negative
11.20
Negative
Market Momentum
-1.27
Positive
12.19
Positive
2.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNKO, the sentiment is Negative. The current price of 7.42 is below the 20-day moving average (MA) of 12.04, below the 50-day MA of 13.01, and below the 200-day MA of 11.20, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 12.19 is Positive, neither overbought nor oversold. The STOCH value of 2.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNKO.
Funko Risk Analysis
Funko disclosed 60 risk factors in its most recent earnings report. Funko reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Funko Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.89B | 13.10 | 24.55% | ― | -1.13% | 163.15% | |
66 Neutral | $8.92B | 23.41 | 34.75% | 3.28% | -17.28% | ― | |
62 Neutral | $3.92B | 41.34 | 14.24% | ― | 46.27% | -26.45% | |
60 Neutral | $281.67M | 8.36 | 15.57% | ― | -2.88% | -14.25% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
48 Neutral | $2.72B | ― | -7.37% | 4.16% | -6.77% | 44.59% | |
37 Underperform | $401.81M | ― | -6.33% | ― | -4.22% | 90.89% |
* Consumer Cyclical Sector Average
Performance Comparison
FNKO
Funko
7.42
1.05
16.48%
HAS
Hasbro
62.95
12.19
24.01%
JAKK
Jakks Pacific
25.27
0.37
1.49%
MAT
Mattel
20.66
0.46
2.28%
NWL
Newell Brands
6.54
-1.00
-13.26%
ELF
e.l.f. Beauty
69.52
-136.90
-66.32%
Funko Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -28.45% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in the fourth quarter of 2024 with significant growth in direct-to-consumer sales, international markets, and collaborations in sports and music. However, challenges such as limited purchases from US retailers, tariffs, and economic uncertainty posed significant risks, especially impacting the first half of 2025.Highlights
Stabilization and Growth in Key Areas
Funko stabilized net sales at over $1 billion, with gross profit and adjusted EBITDA growth exceeding $100 million. Direct-to-consumer sales grew to 29% of overall sales.
Core Collectibles and International Expansion
Core collectibles business grew over 10% in Q4, and sales outside of the US increased by 23%. The Biddy line saw an 83% year-over-year growth in Q4.
Sports and Music Collaborations
Launched successful collaborations with the NFL and NBA, tapping into the $35 billion sports memorabilia market. Music partnerships saw success with Doja Cat and Sabrina Carpenter products.
Improved Financial Metrics
Gross margin improved to 42.4% from 37.6% year-over-year, and adjusted EBITDA was $26.3 million, above guidance. Total debt decreased from $273.6 million to $182.8 million.
Lowlights
Challenges with US Retailers
US retailers, particularly mass retailers, limited purchases to end the year with leaner inventory positions, impacting sales.
Tariffs and Economic Uncertainty
Anticipated impact of 20% tariffs on imports from China and softening consumer behavior in the US market were noted as challenges.
First Half 2025 Guidance
Expected decline in net sales and adjusted EBITDA in the first half of 2025 due to tariffs and weakening consumer behaviors.
Company Guidance
During the call, Funko, Inc. provided guidance for 2025, predicting modest top-line growth with net sales expected to be between $1.05 billion and $1.102 billion. The company anticipates adjusted EBITDA to range from $80 million to $100 million, slightly lower than 2024. In Q1 2025, Funko foresees net sales between $188 million and $198 million, with a gross margin of approximately 39% and SG&A expenses around $91 million. The adjusted net loss is projected to be between $22 million and $25 million, equating to $0.40 to $0.48 per share. Factors influencing this guidance include the impact of 20% tariffs on imports from China, weakening US consumer behavior, and anticipated growth in the second half of the year driven by strategic initiatives like expanding Pop Yourself into new territories and enhancing direct-to-consumer channels.Funko Corporate Events
Executive/Board Changes
Funko Expands Board with New Director Appointment
Positive
Dec 17, 2024
Funko, Inc. has expanded its Board of Directors from eight to nine members, appointing Jason Harinstein as a new director. Harinstein’s extensive financial expertise and experience in the collectibles industry are seen as valuable assets, potentially enhancing the company’s strategic direction and governance.
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.