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Jakks Pacific (JAKK)
NASDAQ:JAKK
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Jakks Pacific
(NASDAQ:JAKK)
Rating:73Outperform
Price Target:
$24.00
▲(19.23%Upside)
Positive Factors
Financial Health
JAKK remains debt-free, has ample capital to fund operations, growth initiatives, and dividends.
Financial Performance
JAKK reported sales, adjusted EBITDA, and GAAP EPS all above consensus and projections.
Market Position
JAKK's unique market positioning in the $28B toys market, strong balance sheet, and attractive valuation are positive factors.
Negative Factors
Future Estimates
Uncertainty surrounding tariffs is causing a conservative reduction in future estimates.
Operating Expenses
Tariffs and elevated direct selling expenses impacted financial performance and visibility for future earnings.
Trade Tariffs
Uncertainty caused by tariffs and a tough comparison for upcoming quarters led to lowered sales and earnings forecasts.
Jakks Pacific (JAKK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$224.37M
Dividend Yield1.24%
Average Volume (3M)163.02K
Price to Earnings (P/E)4.9
Beta (1Y)1.14
Revenue Growth2.89%
EPS Growth41.09%
CountryUS
Employees680
SectorConsumer Cyclical
Sector Strength76
IndustryLeisure
Share Statistics
EPS (TTM)-0.03
Shares Outstanding11,146,230
10 Day Avg. Volume110,705
30 Day Avg. Volume163,023
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.86
Price to Sales (P/S)0.00
P/FCF Ratio5.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.00Price Target Upside63.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Jakks Pacific Business Overview & Revenue Model
Company DescriptionJakks Pacific, Inc. (JAKK) is a leading designer, manufacturer, and marketer of toys and consumer products. The company operates in the toy and consumer product sectors, offering a diverse range of products that include action figures, dolls, role-play toys, outdoor toys, and seasonal products. Jakks Pacific collaborates with well-known brands and licenses to produce themed merchandise that appeals to a wide demographic, from children to collectors.
How the Company Makes MoneyJakks Pacific generates revenue primarily through the sale of its toy and consumer products to retailers, distributors, and directly to consumers. The company leverages strategic licensing agreements with major entertainment companies and franchises, enabling them to produce products based on popular characters and themes. This includes partnerships with Disney, Warner Bros., Nintendo, and other significant entities, allowing Jakks Pacific to offer products that have strong market appeal. Additionally, the company benefits from seasonal sales spikes, such as during the holiday season, and through collaborations with retail giants for exclusive product lines. Jakks Pacific's revenue streams are diversified across various product categories and geographical markets, enhancing its ability to capture a broad segment of the consumer market.
Jakks Pacific Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 4.73%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant sales growth and financial improvements, supported by strong international expansion efforts. However, the ongoing tariff issues pose challenges, particularly affecting high-priced items and potentially impacting consumer prices. The company's proactive approach to mitigating these challenges, including expanding international sales and maintaining a strong cash position, contributes to a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Strong Quarterly Sales Growth
Sales were up 26% in the quarter, with significant contributions from toys related to films like Sonic the Hedgehog 3 and Disney Moana 2. The Dolls, Role Play/Dress-Up business grew by 37%, and Action Play & Collectibles increased by 30%.
International Growth
International sales were up 29%, with notable growth in Latin America and EMEA regions. The company is focusing on expanding its international market to offset U.S. tariff impacts.
Improved Financial Metrics
Gross margin was 34.4%, with adjusted EBITDA improving to $400,000 from a $17.2 million loss last year. The unrestricted cash balance increased to $59.2 million from $35.3 million last year.
Dividend Announcement
The Board approved a $0.25 per share dividend for the second quarter, indicating a strong financial position.
Negative Updates
Impact of Tariffs
Ongoing tariff issues pose a significant challenge, potentially increasing consumer prices and impacting the holiday season product availability and pricing.
Potential Reduced Demand for High-Priced Items
Concerns were raised about the ability to sell higher-priced items due to tariffs and economic uncertainty, potentially affecting revenue from these segments.
Company Guidance
During the JAKKS Pacific First Quarter 2025 Earnings Conference Call, the company reported strong financial performance with a 26% increase in sales, driven by successful toy releases from films like Sonic the Hedgehog 3 and Disney Moana 2, and growth in evergreen product lines. The Dolls, Role Play/Dress-Up division shipped $55.5 million, a 37% rise, while Action Play & Collectibles reached $42.9 million, a 30% increase. North America sales were up 25%, and international sales rose by 29%. The gross margin stood at 34.4%, and adjusted EBITDA was $400,000, marking only the second positive first quarter EBITDA in 15 years. SG&A expenses increased by 1%, or less than $500,000. Adjusted EPS improved to a loss of $0.03 per share from a loss of $1.09 the previous year. The company declared a $0.25 per share dividend for the second quarter, payable on June 27, 2025. Despite tariff concerns, JAKKS is focusing on international growth, particularly in Latin America and Europe, and exploring alternative sourcing outside China to mitigate potential impacts. The company remains debt-free with an unrestricted cash balance of $59.2 million, positioning itself for long-term growth and strategic opportunities.Jakks Pacific Financial Statement Overview
Summary
Jakks Pacific shows a solid financial performance with strengths in profitability and cash generation. The company has successfully improved its margins and profitability metrics. The balance sheet is stable with manageable debt levels, and cash flow generation is robust, supporting operational sustainability. However, the company faces mild challenges in revenue growth and asset expansion, which need attention for sustained long-term growth.Income Statement
Jakks Pacific demonstrates a strong financial performance with a consistent revenue increase from the previous fiscal year to the TTM period. The gross profit margin has improved to 32.32% in the TTM compared to the previous annual figure, indicating enhanced cost efficiency. The net profit margin has also shown improvement, reaching 6.45% from 4.91% in the prior year, showcasing better profitability. The EBIT and EBITDA margins are stable, reflecting efficient operational management. However, the revenue growth rate from the previous year is slightly modest at 3.35%, suggesting room for improvement in top-line growth.78
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a healthy debt-to-equity ratio of 0.24 in the TTM period, indicating manageable leverage. The return on equity has improved to 19.63%, highlighting increased profitability for shareholders. The equity ratio stands at 57.77%, showing a strong equity base. However, the total assets have decreased slightly compared to the previous year, which could impact future growth potential.72
Positive
Cash Flow
Cash flow analysis indicates a positive trend with an increase in free cash flow to $39.02 million in the TTM period. The free cash flow growth rate is 40.85%, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is 1.09, demonstrating efficient cash conversion from earnings. However, the free cash flow to net income ratio is lower at 0.85, suggesting some constraints in translating profits into free cash flow.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 714.22M | 691.04M | 711.56M | 796.19M | 621.12M | 515.87M |
| Gross Profit | |||||
| 230.89M | 213.02M | 223.35M | 211.29M | 182.96M | 149.76M |
| EBIT | |||||
| 57.25M | 39.68M | 59.11M | 60.97M | 29.01M | 12.91M |
| EBITDA | |||||
| 68.18M | 50.87M | 59.98M | 71.85M | 49.02M | 25.84M |
| Net Income Common Stockholders | |||||
| 46.04M | 33.92M | 38.41M | 91.41M | -5.89M | -14.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.19M | 69.94M | 72.35M | 85.30M | 44.52M | 87.95M |
| Total Assets | |||||
| 405.87M | 444.87M | 398.95M | 399.30M | 357.05M | 329.37M |
| Total Debt | |||||
| 56.92M | 56.52M | 24.05M | 87.76M | 114.03M | 183.17M |
| Net Debt | |||||
| -2.27M | -13.41M | -48.30M | 2.46M | 69.51M | 95.22M |
| Total Liabilities | |||||
| 170.84M | 204.04M | 202.84M | 246.82M | 299.15M | 316.43M |
| Stockholders Equity | |||||
| 234.53M | 240.33M | 195.41M | 151.48M | 56.57M | 11.73M |
| Cash Flow | Free Cash Flow | ||||
| 39.02M | 27.70M | 57.50M | 75.71M | -14.10M | 35.30M |
| Operating Cash Flow | |||||
| 50.11M | 38.95M | 66.40M | 86.10M | -5.88M | 43.57M |
| Investing Cash Flow | |||||
| -12.32M | -12.89M | -8.91M | -10.39M | -8.19M | -8.19M |
| Financing Cash Flow | |||||
| -13.52M | -26.92M | -72.29M | -31.02M | -32.79M | -10.95M |
Jakks Pacific Technical Analysis
Negative
20.13
Price Trends
20.64
Negative
24.43
Negative
25.06
Negative
Market Momentum
-0.02
Negative
48.70
Neutral
28.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAKK, the sentiment is Negative. The current price of 20.13 is above the 20-day moving average (MA) of 20.11, below the 50-day MA of 20.64, and below the 200-day MA of 25.06, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 28.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAKK.
Jakks Pacific Risk Analysis
Jakks Pacific disclosed 31 risk factors in its most recent earnings report. Jakks Pacific 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
Jakks Pacific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.12B | 12.20 | 25.50% | ― | -0.73% | 88.76% | |
73 Outperform | $224.37M | 4.93 | 21.81% | 1.24% | 2.89% | 41.09% | |
72 Outperform | $9.35B | 22.01 | 39.16% | 3.15% | -10.31% | ― | |
66 Neutral | $204.60M | 15.07 | 8.29% | 4.04% | -5.40% | 9.57% | |
62 Neutral | $6.91B | 11.20 | 2.93% | 3.90% | 2.68% | -25.01% | |
61 Neutral | $277.98M | ― | -9.70% | 4.85% | -7.28% | -924.86% | |
46 Neutral | $230.18M | ― | -9.24% | ― | -3.30% | 85.53% |
* Consumer Cyclical Sector Average
Performance Comparison
JAKK
Jakks Pacific
20.13
2.37
13.34%
ESCA
Escalade
14.84
1.53
11.50%
HAS
Hasbro
66.71
10.52
18.72%
JOUT
Johnson Outdoors
27.19
-7.39
-21.37%
MAT
Mattel
18.94
1.11
6.23%
FNKO
Funko
4.19
-5.23
-55.52%
Jakks Pacific Corporate Events
Executive/Board ChangesShareholder Meetings
Jakks Pacific Restructures Board Ahead of 2025 Meeting
Neutral
Mar 28, 2025
Jakks Pacific announced a restructuring of its Board of Directors on March 25, 2025, reducing the number of directors from seven to six, and adjusting the composition of Class III directors to one. The company’s 2025 Annual Meeting is scheduled for June 20, 2025, with shareholder notifications expected by May 6, 2025, and a nomination deadline of April 25, 2025.
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.