Jakks Pacific (JAKK) AI Stock Analysis

• Market Cap: $202.96M
• Dividend Yield: 5.97%
• Average Volume (3M): 89.09K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.80
• Revenue Growth: -16.49%
• EPS Growth: -81.62%
• Country: US
• Employees: 680
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 1.80
• Shares Outstanding: 11,269,529
• 10 Day Avg. Volume: 106,419
• 30 Day Avg. Volume: 89,092
• PEG Ratio: -0.77
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 10.96
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 11.80
• 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: 56 Neutral
• Price Target: $19.00 ▲(1.88% Upside)

Jakks Pacific's overall stock score is primarily impacted by declining financial performance and challenging market conditions, as highlighted in the earnings call. While the company maintains a strong balance sheet and offers an attractive dividend yield, the high P/E ratio and bearish technical indicators suggest caution. The recent dividend announcement provides a positive note, but the overall environment remains difficult.

Positive Factors

Strong balance sheet and low leverage

A low debt-to-equity profile and healthy equity base provide durable financial flexibility. This supports capital allocation through downturns, enables funding for new product rollouts or international expansion without immediate reliance on external debt, and underpins dividend policy.

Improving cash position

Rising cash balances bolster short-to-medium-term liquidity and reduce refinancing risk. This cash buffer allows the company to manage working capital, absorb supply disruptions or tariffs, and invest in product development or international initiatives without immediate capital raises.

Licensing relationships and product pipeline

A pipeline anchored in licensed franchises and fresh IP provides structural revenue opportunities. Strong licensor ties and retailer enthusiasm can sustain product renewal, improve shelf presence, and drive repeat seasonal sales if execution and marketing support continue.

Negative Factors

Sustained revenue decline

A 21% sales drop is a material scale contraction that weakens economies of scale, reduces negotiating leverage with retailers and licensors, and pressures margins. If persistent, it can erode distribution relationships and make investment in growth initiatives harder to sustain.

Declining free cash flow growth

Weakened free cash flow growth constrains the company's ability to self-fund capex, product development, or dividends over time. Lower cash generation increases reliance on working capital management or external financing, reducing resilience to industry shocks.

High tariff exposure adding structural cost risk

Large and variable tariffs create lasting sourcing and cost volatility, forcing pricing, margin, or supplier adjustments. Persistent tariff risk can delay retailer orders, disrupt seasonal cadence, and require supply-chain redesigns that raise costs and complexity over multiple quarters.

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 primarily through the sale of its toys and consumer products, which are distributed to retailers worldwide. The company's revenue model is heavily reliant on licensing agreements with major entertainment franchises, enabling them to create products based on popular characters and themes. Key revenue streams include direct sales to retailers, wholesale distribution, and online sales through e-commerce platforms. Significant partnerships with major studios and licensors contribute to the company's earnings by ensuring a steady flow of new, innovative products that align with consumer trends and seasonal demand. Additionally, Jakks Pacific often engages in promotional campaigns and collaborations that enhance brand visibility and drive sales, further bolstering its financial performance.

Jakks Pacific Financial Statement Overview

Summary

Jakks Pacific faces challenges with declining revenues and profitability margins, impacting its income statement. The balance sheet remains strong with low leverage and a solid equity base, providing financial stability. However, the cash flow statement indicates potential liquidity issues with declining free cash flow growth.

Income Statement

Jakks Pacific's income statement shows a declining revenue trend with a significant drop in the TTM period. The gross profit margin is stable, but the net profit margin has decreased significantly in the TTM period. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Despite these challenges, the company has maintained a positive net income.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. The return on equity has decreased in the TTM period but remains positive, suggesting that the company is still generating returns for shareholders. The equity ratio is healthy, showing a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio has decreased, suggesting reduced cash generation efficiency. However, the free cash flow to net income ratio remains relatively strong, indicating that the company is still able to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	574.30M	691.04M	711.56M	796.19M	621.12M	515.87M
Gross Profit	181.11M	213.02M	223.35M	211.29M	182.96M	149.76M
EBITDA	19.79M	50.87M	59.98M	71.84M	18.69M	19.09M
Net Income	6.08M	33.92M	38.41M	91.41M	-6.01M	-14.27M
Balance Sheet
Total Assets	485.27M	444.87M	398.95M	405.34M	357.05M	329.37M
Cash, Cash Equivalents and Short-Term Investments	29.39M	69.94M	72.55M	85.30M	44.52M	92.69M
Total Debt	56.62M	56.52M	24.05M	87.76M	114.03M	183.17M
Total Liabilities	229.35M	204.04M	202.84M	258.64M	299.15M	314.69M
Stockholders Equity	255.91M	240.33M	195.41M	145.70M	56.57M	13.47M
Cash Flow
Free Cash Flow	17.62M	27.70M	57.50M	75.71M	-14.10M	35.30M
Operating Cash Flow	29.38M	38.95M	66.40M	86.10M	-5.88M	43.57M
Investing Cash Flow	-13.57M	-12.89M	-8.91M	-10.39M	-8.19M	-8.19M
Financing Cash Flow	-13.28M	-26.92M	-72.29M	-31.02M	-32.79M	-10.95M

Jakks Pacific Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.65 is below the 20-day moving average (MA) of 18.71, above the 50-day MA of 17.45, and above the 200-day MA of 18.18, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.23 is Neutral, 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
MAT	75 Outperform	$6.62B	15.95	18.90%	―	-2.36%	-16.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HAS	60 Neutral	$13.56B	―	-65.93%	3.44%	0.87%	14.02%
JAKK	56 Neutral	$202.96M	36.70	2.40%	5.97%	-16.49%	-81.62%
FNKO	50 Neutral	$234.30M	-3.33	-32.77%	―	-11.32%	-165.08%
PLBY	47 Neutral	$164.87M	-4.72	―	―	60.60%	66.17%
DOGZ	45 Neutral	$17.83M	-3.29	-5.86%	―	39.47%	31.39%