Jakks Pacific (JAKK) AI Stock Analysis

• Market Cap: $250.68M
• Dividend Yield: 4.39%
• Average Volume (3M): 154.59K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.16
• Revenue Growth: 2.89%
• EPS Growth: 41.09%
• Country: US
• Employees: 680
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Leisure
• EPS (TTM): -0.03
• Shares Outstanding: 11,146,230
• 10 Day Avg. Volume: 167,436
• 30 Day Avg. Volume: 154,592
• PEG Ratio: 0.13
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.22
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 1.14
• 1Y Price Target: $33.00
• Price Target Upside: 46.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $24.50 ▲(8.94%Upside)

Jakks Pacific's solid financial performance, strong valuation metrics, and positive earnings call drive a robust stock score. While technical indicators show short-term strength, they suggest potential resistance ahead. Proactive measures to mitigate tariff impacts and focus on international growth further enhance the outlook.

Positive Factors

Capital Management

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.

Retail Partnerships

JAKK's deep retail partnerships and tailored, IP-driven offerings give it strong shelf presence and defensible positioning across key global accounts.

Negative Factors

Financial Visibility

Tariffs and elevated direct selling expenses impacted financial performance and visibility for future earnings.

Tariff Uncertainty

Uncertainty surrounding tariffs is causing a conservative reduction in future estimates.

Jakks Pacific Business Overview & Revenue Model

Company Description

JAKKS Pacific, Inc. develops, produces, markets, sells, and distributes toys, consumables, and electronics and related products worldwide. It operates in two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.

How the Company Makes Money

Jakks Pacific generates revenue through the design, manufacturing, and sale of toys and consumer products. The company's key revenue streams include sales of licensed merchandise, original product lines, and seasonal items. Jakks Pacific partners with major entertainment companies to produce toys and products based on popular franchises, which often results in significant sales boosts tied to the popularity of these brands. The company's distribution network spans various channels such as mass-market retailers, specialty stores, and online platforms, ensuring widespread availability of their products. Additionally, strategic licensing agreements and partnerships with entertainment giants like Disney, Warner Bros., and Nickelodeon contribute substantially to Jakks Pacific's earnings, as these collaborations allow the company to leverage well-known characters and stories to drive sales.

Jakks Pacific Financial Statement Overview

Summary

Jakks Pacific shows strong profitability and cash generation, with improved margins and a stable balance sheet. However, there are mild challenges in revenue growth and asset expansion that could impact 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.

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.

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.

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
39.47M	69.94M	72.35M	85.30M	44.52M	87.95M
	Total Assets
276.91M	444.87M	398.95M	399.30M	357.05M	329.37M
	Total Debt
204.01M	56.52M	24.05M	87.76M	114.03M	183.17M
	Net Debt
164.55M	-13.41M	-48.30M	2.46M	69.51M	95.22M
	Total Liabilities
286.75M	204.04M	202.84M	246.82M	299.15M	316.43M
	Stockholders Equity
-10.96M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 22.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAKK, the sentiment is Neutral. The current price of 22.49 is above the 20-day moving average (MA) of 20.89, above the 50-day MA of 20.02, and below the 200-day MA of 25.04, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JAKK.

Jakks Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAKK	76 Outperform	$250.68M	5.51	21.81%	4.39%	2.89%	41.09%
MAT	73 Outperform	$6.22B	12.43	25.50%	―	-0.73%	88.76%
HAS	72 Outperform	$9.67B	22.77	39.16%	4.05%	-10.31%	―
ESCA	68 Neutral	$197.01M	14.51	8.29%	4.24%	-5.40%	9.57%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
JOUT	61 Neutral	$309.06M	―	-9.70%	4.37%	-7.28%	-924.86%
FNKO	49 Neutral	$282.92M	―	-9.24%	―	-3.30%	85.53%

Jakks Pacific Corporate Events

Jakks Pacific Restructures Board Ahead of 2025 Meeting

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.